Kai·June 4, 2025

In smart buildings, understanding energy use is key. Building owners often weigh submetering against utility meter data.

Both methods track energy use. Yet, they offer different insights and need different investments. Knowing their pros and cons helps owners choose the best energy monitoring strategy.

What Is Utility Meter Data?

Utility meter data comes from your energy providers. This includes electric, gas, and water companies. It’s recorded by meters at your building’s service entrance.

Types of Utility Meter Data

There are several forms of utility meter data:

• Monthly billing data: This is the most basic data. It shows total consumption (kWh for electricity, therms for gas) and demand (kW) per billing period. It’s on every utility bill. No extra equipment is needed.
• Interval data: Many utilities now provide 15-minute or hourly data. This is for commercial accounts. It comes from smart meters or automated meter reading (AMR). This data is more detailed than monthly data. It helps analyze load profiles.
• Green Button data: This is a standard data format. It lets customers download their usage data. It’s machine-readable. Many utilities support Green Button Connect. This allows automatic data transfer to energy platforms.
• Real-time data: Some utilities offer near real-time data. This uses smart meter tech or customer portals. It usually has a short delay (15-60 minutes).

Advantages of Utility Meter Data

Using utility meter data offers several benefits:

• No additional cost: Utility meter data is part of your service. There is no extra charge. Even interval data is often free via customer portals.
• Revenue-grade accuracy: Utility meters meet strict accuracy standards (ANSI C12). They are highly accurate (±0.5% for electricity).
• Long historical record: Utilities often keep records for five or more years. This provides a good baseline for energy trends.
• Billing reconciliation: This data forms the basis for your bills. It directly links energy use to cost.

Limitations of Utility Meter Data

Despite the advantages, utility meter data has its limits:

• Limited granularity: Utility meters measure total building use. They cannot show specific uses (HVAC, lighting) or zones.
• Single fuel type: Each utility meter tracks one energy source. Buildings using multiple fuels need separate data streams. These must be combined manually.
• Delayed availability: Even with smart meters, data has delays (hours to days). Monthly bills arrive weeks after use.
• Limited context: This data lacks context. It doesn't show conditions like weather or occupancy. This context is vital to understand if energy use is appropriate.

What Is Submetering?

Submetering means adding more meters. These meters are installed after the main utility meter. They measure energy use at a finer level. Submeters can be placed at different points in a building’s power system.

Types of Submetering

Submetering can be done in various ways:

• Panel-level submetering: Meters are put on main distribution panels. They track use by floor, wing, or major systems. This is common and cost-effective.
• System-level submetering: Meters are installed on feeders for specific systems. This includes HVAC or lighting. This helps meet load segregation codes.
• Tenant submetering: Meters are placed on circuits for individual tenants. This allows billing tenants for their actual energy use. It’s common in multi-tenant buildings.
• Equipment-level submetering: Meters go on single pieces of equipment. This provides the most detailed data. However, it needs more metering infrastructure.

Advantages of Submetering

Submetering offers significant benefits:

• End-use visibility: Submeters show which systems use energy. This helps target energy saving efforts.
• Real-time data: Modern submetering systems give data quickly. Data can be updated every minute or less. This helps find issues fast.
• Operational context: Submetering data can integrate with building automation systems. This links energy use to operational data. It provides rich context for analysis.
• Fault detection: Submetering data aids automated fault detection (AFDD). It finds equipment errors or control failures. These issues waste energy.
• Tenant billing: In multi-tenant buildings, submetering allows fair billing. Tenants pay for their actual consumption.
• Code compliance: IECC 2021 and ASHRAE 90.1-2022 require submetering. This applies to commercial buildings over certain sizes.

Limitations of Submetering

Submetering also has drawbacks:

• Initial cost: Submetering needs investment. This includes hardware, installation, and software. Costs can range from $0.25-0.75 per square foot.
• Ongoing maintenance: Submetering systems need regular checks. This means calibration, sensor replacement, and software updates.
• Data management: Submetering produces a lot of data. This data needs to be collected, stored, and analyzed. Without good tools, it can be overwhelming.
• Accuracy limitations: Modern submeters are accurate (±1-2%). But they are less accurate than utility meters. Submetering data might not perfectly match utility bills.

When to Use Each Approach

Utility Data Is Sufficient When:

Utility data is enough for:

• Buildings with one tenant and simple mechanical systems.
• Benchmarking against similar buildings (ENERGY STAR scoring).
• Tight budgets that prevent submetering.
• Small buildings (under 25,000 square feet) not under submetering codes.
• Owners only need monthly or quarterly performance tracking.

Submetering Is Necessary When:

Submetering is needed for:

• Code compliance (IECC 2021, ASHRAE 90.1-2022).
• Buildings with multiple tenants needing individual billing.
• Operational optimization is key and system-level data is required.
• Building Performance Standards demand detailed energy reports.
• Implementing continuous commissioning or AFDD.
• Buildings in demand response programs benefiting from load-specific control.

The Best Approach: Both

The most effective strategy uses both utility data and submetering. Utility data provides an accurate, billing-grade baseline. Submetering gives detailed, real-time insights for operations.

The utility meter is the benchmark. It defines total consumption and cost. Submeters break down this total. They show where to improve. Regular checks between submeter totals and utility readings confirm accuracy.

Making the Business Case

For building owners, the business case for submetering rests on three main points:

• Energy savings: Submetering leads to 10-20% energy reduction. This means $0.30-0.80 per square foot in annual savings.
• Tenant billing accuracy: In multi-tenant buildings, submetering improves billing. It ensures tenants pay for their actual use.
• Compliance: Submetering is becoming a regulatory requirement. This is due to expanding codes and performance standards.

A 100,000-square-foot commercial building might invest $25,000-75,000 in submetering. This investment usually pays off in one to three years. Savings continue for the system's life.

Emergent Metering helps building owners. We evaluate metering needs. We implement cost-effective solutions. These combine utility data and submetering. Contact us to discuss your building's needs.

The Integration Advantage: Combining Submetering with Utility Data

Top energy management programs combine both utility meter data and submetering. They leverage the strengths of each. This creates a unified platform.

Utility meter data provides financial details. It shows actual billed consumption and costs. Submetering data offers operational intelligence. It reveals which systems and schedules drive consumption. Together, they form a complete energy picture.

For example, utility data might show energy spikes. If spikes happen every Tuesday and Thursday afternoon, submetering helps find the cause. Circuit-level monitoring could show it correlates with a server room's cooling. This unit might run too much, even with low server load.

This integration also improves cost allocation. Instead of dividing costs by square footage, operators can allocate costs more accurately. This promotes energy-efficient behavior among tenants.

Making the Right Investment Decision

Deciding between utility data, panel-level submetering, and circuit-level monitoring depends on your goals. Consider these options:

• For regulatory compliance: Panel-level submetering on major systems may be enough. This meets most codes at a reasonable cost. It provides data for yearly reports.
• For operational optimization: Circuit-level monitoring provides detailed data. This helps identify waste and optimize equipment schedules. The investment is justified by deeper savings.
• For tenant billing: Dedicated tenant submeters are essential. They must be revenue-grade accurate. These meters serve legal and financial functions.
• For comprehensive building intelligence: Use all three. Utility data for billing. System-level submetering for compliance. Circuit-level monitoring for operations. This offers the most complete view.

For most commercial buildings, start with circuit-level monitoring. Focus on high-value circuits like HVAC, lighting, and 24/7 loads. This captures most actionable insights. It costs less than monitoring every circuit. As savings grow, expand monitoring to more circuits.

Technology now makes entry remarkably easy. Wireless, self-powered sensors install fast. They don't need equipment shutdown. Cloud-based platforms eliminate on-site servers. Data is available immediately. Savings often appear within the first week.

Submetering's value beyond utility meter data is clear. The key is choosing the rightgranularity. More granularity almost always provides more benefits.

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About Emergent Metering Solutions

Emergent Metering Solutions provides commercial and industrial metering hardware, installation support, and energy analytics services. We specialize in electric meters, water meters, BTU meters, compressed air meters, gas meters, and steam meters with Modbus RTU, BACnet IP, pulse output, and wireless communication options. Our Managed Intelligence services deliver automated reporting, anomaly detection, tenant billing, and AI-powered consumption forecasting. We support compliance with IECC 2021, ASHRAE 90.1-2022, NYC Local Law 97, Boston BERDO 2.0, DC BEPS, California LCFS, and EU CSRD requirements.

Contact our engineering team for meter selection guidance, system design, and project quotes.