Six Financial Benefits of Utility Submetering
Tracking utilities is a hassle. There’s not enough time in the day to find active solutions for tenant concerns as well as rising energy costs and building operating expenses.
Utility submetering provides a way of billing each tenant for their individual use of electrical, thermal, water and gas energy. With this information, both tenants and property managers can actively cut costs while being socially responsible with their energy consumption.
Residential, commercial, industrial and institutional buildings can all profit from financial benefits of submetering.
How can submetering save time and money?
1. Fair Rates for All Tenants
Both property managers and tenants are looking for fair rates and accurate billings. With submetering, there are no estimates on energy consumption. Data is recorded and sent to an energy management software every 15 minutes.
Each tenant pays for their consumption, rather than using cost-sharing methods. Individualized billing, rather than fixed cost utility payments, is an attractive option for tenants looking for cost-effective opportunities. Submetering also detects bill errors by comparing utility usage with the utility bill.
2. Read, Bill and Collection Services
This service is designed to send information and billing directly to tenants, on behalf of the property manager.
|Read: Daily energy consumption for each client is automatically recorded. This is recorded from actual consumption rather than cost-sharing or formula-based strategies.
Bill: Tenant bills are generated based on individual consumption and current utility rates.
Collection: Payments are collected through an automatic payment process
3. Lowered Building Operating Costs
Profitability is a constant pressure for property managers. The main hurdle to this goal is controlling and maintaining operating costs.
However, upgrading older buildings with new energy systems can be an effective way to control high utility and maintenance costs.
The McGraw Hill Construction Smart Market Report found that energy monitoring systems in updated buildings use 20% to 40% less energy, in addition to cost savings in operating expenses.
4. Cost-Efficient Energy Consumption
Submetering uses an energy management software system. The analytical software not only provides real-time data but provides information about consumption habits and consequently, opportunities for savings.
This data allows tenants to see where and when most of their energy consumption lies. As tenants continue to receive information about their individual usage, they are likely to adopt energy efficient habits.
These are easily adaptable changes, such as knowing when to use certain equipment, and when to shut off appliances completely. With implementing small changes, total energy consumption in the building can be reduced by 34%.
For property managers, specific information about CO2 emissions and kWh dollars is available for viewing. Visibility and transparency into energy emissions allow both property managers and tenants to take appropriate action to support energy efficiency and cost savings.
5. LEED Energy Credits
LEED, or Leadership in Energy and Environmental Design®, is a universal rating system for green buildings, designed to promote energy efficiency and cost savings.
Submetering can easily verify and track progress towards obtaining LEED energy credits. The LEED Metering System helps support property managers and developers with areas such as design, budgeting, and software reporting to achieve credits in the most cost-effective manner.
6. Diagnostics for Better Cost Savings
The energy management software provides feedback on when, where and how energy is used. It identifies peak times; where there’s a greater demand and therefore, higher rates for energy usage. Tenants can plan for appropriate off-peak times to ensure cost savings in their energy bill. Identifying peak times and habits alone can give tenants control over skyrocketing utility costs.
Additional functions include an option for comparison. Tenants and property managers can view energy consumption on a daily, weekly, monthly or yearly basis.
Data comparison and diagnostic functions are also available for equipment, allowing for constant updates on functionality before maintenance problems arise.
The upfront cost can be a reason why people shy away from investing in submetering. There are financing options available to those who do not or cannot pay the upfront cost of the submeters. Hamdon is also available to do free on-site troubleshooting in the local area of Edmonton. On-site inspections can be done with only a few hours notice.