Utility Submetering Systems: Increase Your Property’s Efficiency

Most buildings, especially older ones, use something called a ratio utility billing system, or RUBS. Instead of billing tenants for what they actually use, RUBS splits the total utility bill using a formula based on unit size, how many people live there, or shared spaces everyone uses.

This formula is mostly outdated and doesn't help much with large-scale properties. That's where utility submetering systems come in. 

Think of them as a way to track who uses what when it comes to utilities like water, electricity, gas, or even heat. Instead of lumping all tenants’ utility usage into one big bill, each unit gets its own meter. This means you can measure exactly how much each tenant uses.

In this article, we’ll walk you through how submetering systems work, the different types out there, and how they can help you manage utilities better.

How Do Utility Submetering Systems Work?

As a first step, each unit receives its own meter or micrometers (when multiple meters are connected to each fixture in the unit). These meters connect to a central system or network that collects usage data.

Depending on the setup, the data is either written down by hand or sent automatically to a database.

Once the system has the data, it’s used to figure out each tenant’s utility bill.

Types of Submetering Configurations

Let’s look at the different ways you can set up submetering systems. Here’s a quick breakdown.

• Single-point submeters: Each unit gets one meter that tracks only what that unit uses. It’s a simple setup and works well when you want to bill tenants based on their own usage. It also helps you spot patterns so you can find ways to cut down on water use.

• Multi-point submeters: These can track usage for several circuits or devices from one electrical panel. They’re a good fit for buildings where tenants share a single panel.

• Branch circuit submeters: These are great for commercial or industrial buildings. They track energy use across different circuits in one panel so you can see exactly where and how energy is being used.

The Role of Technology in Submetering

Many modern buildings now use smart meters. These meters send usage data automatically, so you don’t have to do much manual work when it’s time to bill tenants.

Some systems even come with apps that let tenants see their own usage in real time. This helps everyone get a better idea of how much water is being used by the unit and across the whole building.

Types of Utilities Measured by Submetering Systems

Utility metering systems can measure resource consumption fairly accurately. Here are the most common types:

Water Submetering

Water submetering is one of the most common and useful ways to track utility use. Each unit gets its own water meter, so tenants pay for the water they actually use.

This is a big help in multi-tenant buildings where water bills are usually split evenly, even if one unit uses much more water than another. It also helps you spot problems early, like leaks inside apartment units or common areas.

One smart option is DrizzleX’s micrometers. These small meters go right on fixtures like sinks, showers, toilets, laundry rooms, and even sprinklers. They track water flow accurately and send the data to a dashboard you can check anytime. You’ll even get alerts if there’s a leak or if someone’s using too much water.

With this setup, you can bill each tenant based on real usage, not just divide the bill evenly. It’s a fairer way to manage water costs.

Tenants using less water save money, and those using more pay their share. It’s also great because you’ll know about leaks immediately and can fix them before they turn into bigger problems.

How Water Submetering Helps Your Property: A Case Study

We put together a case study to show how a good water submetering system can cut utility costs.

A property in Gardner, MA, installed DrizzleX’s water submetering system in all 224 units, serving 670 tenants.

Over the course of nine months, the submetering system helped the property save 49% on water costs, for a total savings of $91,434!

Check out the image below to see how much water and money the property saved with DrizzleX’s submetering system.

Interested? Get a free quote from DrizzleX and see how their submetering systems can benefit your property today.

Electricity Submetering

Electricity submetering lets you bill each tenant for the exact amount of electricity they use. This matters in units with electric heating or many appliances, where usage can vary a lot.

Gas Submetering

If your property uses gas for stoves, heaters, or water systems, gas submetering is a smart move. Each unit gets a meter that tracks how much gas they use. 

This setup is especially handy when tenants have different lifestyles. It’s fair and simple and saves you from explaining why someone’s gas bill feels unfair.

Heat And Cooling Submetering

These systems track how much energy is used for heating and air conditioning. In larger buildings, HVAC is one of the biggest energy costs, so this type of submetering can really help you keep things fair and under control.

How DrizzleX Can Help You With Utility Submetering Systems

DrizzleX helps you find hidden leaks and spot tenant overuse. This cuts water waste and can lower your water bills by 25–45%.

Most buildings save enough to cover the cost of DrizzleX in about 9 months. It’s a fast way to reduce utility costs and boost your net operating income.

• Track usage: Get water reports for each unit to see how much water tenants use and help them cut back.

• Find hidden leaks: Spot silent leaks like running toilets or dripping faucets that don’t show up during inspections.

• Monitor flow: See where and how much water is being used in real time.

• Get email alerts: When there’s a leak, you get an email with the unit, fixture, gallons wasted, cost, and suggested fix.

• Bill tenants fairly: Create accurate water bills based on actual use—tenants use less when they pay for what they use.

Get a free quote today and start submetering your building!

FAQs About Submetering Systems

What is a submetering system?

A submetering system tracks utility usage in individual units. It gives property owners accurate data to distribute utility costs fairly. By using utility submetering, they can allocate costs based on the actual use of electricity, water, or natural gas. This helps manage building systems better and reduce energy costs.

What is the disadvantage of a submeter?

The main issue is the setup. Utility submetering may require updates to building systems, and older properties can be harder to retrofit. If an outsourced submetering company doesn’t collect meter data well, it can affect how you allocate costs and fairly distribute utility costs using accurate data.

Is submetering worth it?

Yes. Utility submetering gives property owners accurate data to allocate costs based on utility and energy usage. It helps fairly distribute utility costs, lowers energy and electric costs, and encourages tenants to reduce natural gas and water use. Over time, it leads to cost savings and better control of utility services.

How much does it cost to install a sub meter?

Costs vary by unit type and service. Installing submeters for water, electric, or natural gas may cost a few hundred to a few thousand dollars per unit. Working with an outsourced submetering company helps you get accurate data, manage building systems, and find long-term cost savings on utility costs.