Submetering 101: Everything You Need to Know
The complete guide to utility submetering for property owners. What it is, how it works, and why it's one of the smartest investments you can make for your building.
What Is Submetering?
Submetering is the practice of installing individual utility meters in each unit of a multi-unit building to measure actual consumption. Instead of one bulk meter for the entire building, each apartment, condo unit, or commercial space gets its own meter — and each tenant is billed based on what they actually use.
Think of it this way: without submetering, every tenant in a building shares one water bill equally, regardless of whether they take 5-minute showers or 30-minute baths. With submetering, everyone pays for their own usage. It's the same principle as having your own electricity account in a house — but applied to multi-unit buildings.
How Does Submetering Work?
The process is straightforward:
- 1.Meters are installed — Certified meters are placed on each unit's electrical panel and/or water supply line.
- 2.Data is collected automatically — Modern meters transmit consumption data wirelessly to a central billing platform. No manual reads needed.
- 3.Tenants are billed monthly — Each tenant receives a bill based on their actual usage. The submetering company handles all billing and collections.
Benefits for Property Owners
Benefits for Tenants
Types of Submetering
Electricity
The most common type. Meters installed in electrical panels measure per-unit power consumption.
Water
Meters on water supply lines measure individual water usage. Often paired with leak detection.
Thermal (Heating/Cooling)
Measures heat or cooling delivered to each unit. Common in buildings with central HVAC systems.
Gas
Individual gas meters for buildings with per-unit gas connections. Less common but available.
Submetering vs. Bulk Metering
Submetering vs. RUBS
RUBS (Ratio Utility Billing System) allocates utility costs to tenants based on formulas — usually square footage, number of occupants, or a combination. It's better than bulk billing, but it's not based on actual usage.
Regulatory Landscape
Submetering regulations vary by jurisdiction. Here's a brief overview:
🇨🇦 Canada
In Ontario, submetering is regulated under the Ontario Energy Board (OEB). All meters must be Measurement Canada approved and regularly inspected. Many provinces now require or encourage submetering in new multi-unit construction. Alberta, British Columbia, and Quebec each have their own regulatory frameworks.
🇺🇸 United States
Regulations vary by state. Many states allow submetering with specific consumer protection requirements. States like New York, California, and Texas have established submetering frameworks. Local utility commission rules may also apply.
Frequently Asked Questions
How much does submetering cost?
With Axis Meter, $0 upfront. We own all equipment during the agreement term. Some providers sell meters outright, which can cost $200-500 per meter plus installation.
How long does installation take?
With Axis Meter, 8-10 weeks from agreement to live meters. Equipment ordering takes about 6 weeks, and installation is typically 1-2 days of building access.
Can you submeter an older building?
Yes. Retrofit submetering is common and can be done in most buildings regardless of age. The meters are installed in existing electrical panels and on existing water lines.
Do tenants have to agree to submetering?
In most jurisdictions, the property owner can implement submetering as part of building operations. Specific rules vary by location — we handle compliance for you.
What happens if a meter malfunctions?
With Axis Meter, we own and maintain all equipment. If a meter needs repair or replacement, we handle it at no cost to you.
Ready to Explore Submetering?
Now that you know the basics, let's talk about your specific property. Book a free consultation and get a custom assessment — no obligation.