Submetering: From Measurement to Estimation

"Submetering" commonly refers to the process of transferring the legal responsibility for utility usage to individual residents in multifamily and multi-unit properties. Although the term includes the word "meter," submetering can also involve utility allocation methods that don’t rely on physical meters but instead use formulas to estimate utility usage. Along the continuum from precise measurement to estimation, hybrid systems combine both measurement devices and allocation formulas, offering a tailored solution for each property's needs.

Benefits of Submetering:

• Increased efficiency: Promotes utility conservation and cost control by aligning charges with actual usage.

• Transparency: Gives residents direct insight into their consumption, encouraging responsible usage.

Full Capture Submeter Billing

As the name suggests, Full Capture Submetered Billing is used in properties where water, gas, or electrical distribution systems allow the installation of single-point submeters that measure the total utility usage in each unit. Submeters manufactured to standards set by the National Institute of Standards and Technology (NIST), the American Water Works Association (AWWA), and the American National Standards Institute (ANSI) provide dependable, accurate measurements and billing for utility usage.

Benefits of Full Capture Submeter Billing:

• Accurate billing: Ensures precise utility charges based on actual consumption.

• Regulatory compliance: Meets industry standards for measurement and billing.

• Cost savings: Maximizes utility expense recovery by billing residents for their individual usage.

  
  

Partial Capture Submeter Billing

Partial Capture Submeter Billing is used when submeters capture only a portion of each unit's total utility usage. For example, in some apartment communities, the plumbing system may allow submeters to measure only part of the water usage, such as installing a submeter on the cold water line feeding the water heater. This method is called Hot Water Capture-Cold Water Allocation Billing, where utility charges are based on an estimate of cold water usage.

Partial capture systems combine both metered and formula-based allocation, offering a flexible and cost-effective solution for properties that cannot fully submeter all utilities.

Benefits of Partial Capture Billing:

• Flexibility: Customizes billing to your property's unique infrastructure.

• Cost-effective: Minimizes installation costs while still providing accurate utility billing.

• Encourages conservation: Even partial measurement can incentivize residents to reduce usage.

  
  

Gas Runtime Allocation Billing

Gas Runtime Allocation is a specialized hybrid billing system used in older multifamily housing communities where individual metering of gas usage is not possible due to existing heating systems. In these cases, high-resolution sensors are installed to measure the runtime of gas-powered furnaces, water heaters, and fireplaces. These runtime monitors also estimate baseboard heating costs. In these systems, distribution losses, standby heating, and other unmetered costs are allocated back to individual residents based on a mathematical formula.

Benefits of Gas Runtime Allocation:​​

• Ideal for older buildings: Enables utility tracking in systems where traditional metering is not feasible.

• Precise estimation: Uses advanced technology to estimate gas usage with high accuracy.

• Cost efficiency: Reduces costs associated with installing full meters while still ensuring fair billing.

  
  

Formula Billing

Formula Billing uses a mathematical formula to estimate utility usage in each apartment unit. A widely adopted form of allocation billing is Ratio Utility Billing Service (RUBS), which calculates utility charges based on factors such as:

• Number of residents in each unit

• Unit size

• Common area usage

• Master utility usage

• Occupancy days

• Number of water fixtures per unit

Another form of formula billing is Flat Fee Billing, where utility costs are divided equally among all residents, regardless of their individual usage.

Benefits of Formula Billing:

• Scalable solution: Easily applied to properties with varying unit sizes and occupancy rates.

• Transparent and fair: Allocates utility charges based on multiple factors, ensuring a fair distribution of costs.

• Cost-effective: Ideal for properties where full metering isn’t practical or feasible.

Why Choose Submetering? By implementing a submetering system, property owners can enhance operational efficiency, reduce utility costs, and foster a culture of conservation among residents. With the right system in place, utilities become a transparent and fair cost that aligns with actual usage, benefiting both owners and residents.

Ready to Optimize Your Utility Billing? Whether you’re considering full capture submetering, hybrid systems, or formula billing, Guardian has the expertise to recommend and implement the ideal solution for your property. We ensure a smooth process from installation to billing, with industry-leading pricing and the fastest lead times in the market. Contact us today to learn more about how we can help you reduce costs, improve billing accuracy, and enhance tenant satisfaction with our comprehensive submetering solutions.