Rising energy rates are driving multi-family property owners to allocate utility costs back to the tenant, recover revenue and promote resource conservation. Arbitrary square-footage cost allocation and other ratio billing measures do little to encourage energy conservation. Alternatively, tenants in high-rises, condos, co-ops and mixed-use buildings have been shown to use up to 25% less energy when submeters hold them accountable for the power they use
In facilities where there are multiple tenants, monitoring actual consumption is a win-win for both the building owner and the tenants.
Facility Owners & Managers
Managers are able to allocate energy usage costs directly to the tenants. Energy costs can include not only electric but gas, water and BTU costs as well. In addition, all common area usage can be monitored and distributed equitably between tenants. Both tenant billing and common area allocation allows building managers to recoup energy expenses.
Tenants benefit from submetering of actual energy usage in two ways. First, tenants only pay for exactly what they use. They are not burdened with the overflow cost of large users as they would be if they were billed at a flat rate per square foot of space rented. Secondly, they gain control over their usage allowing them to conserve energy and benefit financially for their efforts
Tenant Billing & Allocation
No two tenants use energy the same way. One may travel often while their neighbor works from home. Building owners are now able to install submeters to monitor each tenant individually and generate energy statements based on their actual energy use. This increases tenant satisfaction because they know they are only accountable for the energy they use, while the building manager benefits by recovering all tenant energy costs.
Common Area Management
Elevators, HVAC, parking lot lighting and hall lighting all have an effect on a building's overall energy budget. Building owners have often struggled with accurate management of common area costs. Metering these areas provides them with the data they need to gain insight on common area energy usage allowing for accurate allocation of costs to tenants.