Electric Sub-Meters — Everything You Need to Know

Updated April 6, 2025 | Published December 14, 2024

Electric sub-meters are crucial technology for efficient energy management and cost savings. However, choosing the wrong electric sub-meter equipment can undermine these benefits.

The wrong sub-meters can lock properties into proprietary systems, increase the cost of maintenance and management, and derail future modernization.

In this comprehensive guide, Sieco-Tech—a leading Canadian manufacturer of electrical smart sub-meters—delves into the essentials of sub-metering, focusing on regulatory compliance, installation processes, and the significant benefits it offers property owners and tenants alike.

At a Glance

• How electric sub-meters benefit properties
• How to choose the best electric sub-meter
• The importance of compliance with regulatory standards.

Let's get started by understanding the basic concepts and benefits of electrical sub-metering.

Electrical Sub-Meters Definition and Basic Concepts

An electrical sub-meter is a measurement device installed downstream from the main utility meter, such as a building's main electrical, gas, or water meter, to accurately measure and monitor energy usage for specific areas or individual tenants within a building complex.
 

For instance, when Ontario apartment buildings are equipped with sub-metering systems, property managers can use their data to bill each tenant for their electrical usage individually rather than using estimated, flat rate or averaged figures.

Benefits of Electric Sub-Meters

Sub-metering offers numerous benefits for landlords, property management companies, tenants and residents.
 

• Cost Allocation
  An electrical sub-metering project allows for precise billing based on actual measured consumption, ensuring that each tenant pays for their usage. This protects renters and tenants from subsidizing others' usage with their individual bill payments. 
   
• Energy Efficiency
  By monitoring usage, tenants can be more mindful of their consumption and have control over their utility bills, leading to significant reductions in energy use and better conservation practices.
   
• Enhanced Property Value
  Buildings with sub-metering systems are often seen as more efficient and environmentally friendly, increasing their market value.
   
• Keeping Assets Sustainable
  Consumer protections under Ontario’s Residential Tenancies Act currently cap rent increases to 2.5 percent, and they were even lower in previous years. This presents financial challenges for properties that include utilities in their rent. These limits, combined with 90-day notice requirements and 12-month restrictions before new adjustments, leave property owners with few options to budget for increased utility costs.
   

Next, we will explore the regulatory compliance requirements specific to Ontario and how they impact sub-metering practices.

Choosing the Best Electric Sub-Meters

Choosing the right sub-metering system involves evaluating several critical factors to ensure it meets your specific needs:

1. Compliance with Regulations
   Ensure the system adheres to federal and local regulatory requirements, such as those set by the Ontario Energy Board (OEB) and Measurement Canada. 
    
2. Accuracy and Reliability
   Look for systems that meet ANSI C12.20 Class 0.5 standards to ensure high accuracy and reliability in data collection.
    
3. Design Specs and Installation Ease
   Do the meter specifications configure with your building infrastructure, and can they be installed in the locations where you need them?
    
4. Scalability
   The system should scale with your needs, accommodating future expansions or increased usage.
    
5. Ease of Installation and Maintenance
   Consider the complexity of installation and the level of ongoing maintenance required to keep the system operational.
    
6. Data Accessibility and Reporting
   Ensure the system provides easy access to data and comprehensive reporting capabilities to facilitate energy management and billing.

Key Features to Look For in Sub-Meters

When evaluating sub-metering systems, prioritize Advanced Metering Infrastructure 2.0 features to maximize benefits:

1. Real-Time Monitoring: The ability to monitor energy usage in real-time can help in identifying issues and making timely adjustments.
    
2. Remote Access and Control: Systems with remote access capabilities allow for convenient monitoring and management from any location.
    
3. Integration with Energy Management Systems: Compatibility with existing energy management systems can streamline operations and enhance overall efficiency.
    
4. User-Friendly Interface: A system with an intuitive interface simplifies data interpretation and usage.
    
5. Customizable Alerts and Notifications: Features that provide alerts for unusual consumption patterns or potential issues can help in proactive management.

Best Electric Sub-Meters for Tenants — Sieco-Tech

Sieco-Tech provides plug-and-play modular electric sub-meters for commercial and residential properties.

With a focus on ease of installation and ongoing support, Sieco-Tech ensures a seamless sub-metering experience through the life a meter. Their systems offer accurate, real-time data and robust reporting, making it easier for businesses to manage energy consumption and costs effectively.

Tips for Overcoming Common Challenges

While electrical sub-metering offers numerous benefits, businesses may face challenges such as high upfront costs, complex regulatory compliance, technical integration issues, and gaining tenant cooperation in multi-tenant buildings.

To effectively address these challenges, consider the following strategies:
 

1. Engage with Experts: Work with experienced and certified sub-metering consultants, such as VIP Meter Services, who are well-versed in regulatory requirements. Their expertise can help ensure compliance and smooth implementation.
    
2. Financial Planning and Incentives: Explore financial incentives, grants, or subsidies available for energy efficiency projects. Additionally, conduct a cost-benefit analysis to demonstrate the long-term savings and benefits of sub-metering to stakeholders.
    
3. Thorough Planning and Testing: Conduct comprehensive planning and rigorous testing to ensure the sub-metering system functions correctly and integrates seamlessly with existing infrastructure.
    
4. Educate and Communicate: Provide clear communication and education to tenants about the benefits of sub-metering. Workshops, informational sessions, and detailed documentation can help build understanding and cooperation.

How Electric Sub-Meters Work

Detailed Installation Process

The installation of electrical sub-meters involves several steps to ensure accurate measurement and monitoring of energy usage:

• Site Assessment: The electrical infrastructure of the building is thoroughly assessed to determine the best locations for installing sub-meters.
   
• Planning and Design: A detailed plan is created, outlining the specific requirements and the type of sub-meters to be used, ensuring compliance with local regulations.
   
• Installation: Certified electricians install the sub-meters downstream from the main utility meter. This process includes wiring the sub-meters to individual units or specific circuits within the building.
   
• Testing and Verification
  After installation, the sub-meters are required to undergo an installation verification to ensure they comply with Measurement Canada’s S-E-04 Specification and, therefore verifying the metering is connected correctly.
   
• Integration with Monitoring Systems: The sub-meters are integrated to a corresponding unit monitoring number and mapped correctly in the HES (head end system).

How Electric Sub-Meters Measure & Record Electricity Usage

Electrical sub-meters function by measuring the electrical current passing through specific circuits. These devices can monitor various parameters, such as voltage, current, and power consumption. The collected data is then transmitted to a central processing system where it can calculate usage and be used for billing and energy management.

Sub-Meters can be:

• Analog Meters: Basic devices that use electrical and mechanical components to measure electricity usage.
   
• Digital Meters: More advanced than analog, providing electronic measurements and more accessible data integration.
   
• Smart Electric Sub-Meters: These meters offer real-time data transmission, remote monitoring, and integration with energy management systems.

Examples of Data Collected by Sub-Meters and How It’s Used

The data collected by electrical sub-meters includes:

• Energy Consumption: Total electricity usage over a specific period.
   
• Peak Demand: The highest level of electricity usage during a specific timeframe.
   
• Power Quality: Information on voltage stability and other power quality metrics.

This data is then used to provide enhanced breakdowns of metric readings and possible actionable insights to increase operational efficiency and reduce over-consumption.

Generate Accurate Bills

Tenants are billed based on their actual energy usage, as measured by a sub-meter, ensuring fair cost allocation.

Monitor and Manage Energy Usage

Property managers can identify trends, detect inefficiencies, and implement energy-saving measures.

Enhance Operational Efficiency

Businesses can optimize their operations and reduce costs by understanding how and when energy is used.

Next, we will explore the benefits of electrical sub-metering, including cost savings, energy efficiency, and environmental impact.

Electric Sub-meter Benefits

Proven Energy Use Reductions With Sub-Metering

Sub-metering has been shown to significantly reduce energy usage by providing detailed insights into consumption patterns.

Studies by the U.S. Department of Energy (DOE) have demonstrated that sub-metering can reduce energy use by up to 45%. This is achieved by:

• Increasing Awareness: When tenants and property managers have access to detailed energy usage data, they become more conscious of their consumption habits. This is known as “The Hawthorne Effect,” which is the phenomenon where individuals modify an aspect of their behavior in response to their awareness of being observed.
  
  The DOE estimates retrofitting sub-metering for new developments provides up to a 5% increase in energy conservation simply due to the installation and use of sub-meters which also increases  awareness among end users.
   
• Identifying Inefficiencies: sub-meters help pinpoint areas where energy is being wasted, allowing for targeted interventions and improvements. Adjustments to these insights can improve energy efficiency and save up to 15%.
   
• Encouraging Behavior Change: Accountability for individual energy use often leads to more responsible consumption behaviors. Long-term continuous management attention leads to as much as 45% reduction in energy costs.

For some Canadian businesses, these reductions have translated into substantial cost savings, often amounting to thousands of dollars within months of installing sub-meters.

Increase Property Values with Electric Sub-Meters

Buildings equipped with sub-meters tend to have higher market values. This is due to several factors:

• Energy Efficiency: Sub-metered buildings typically operate more efficiently, reducing overall utility costs and increasing their appeal to potential buyers or tenants
   
• Market Competitiveness: Properties that can demonstrate lower energy consumption and better sustainability practices are often more attractive in the real estate market.
   
• Investment Protection: sub-metering helps ensure that property owners get the most out of their investments by optimizing energy use and reducing waste.

Powerful Insights

Knowledge is power, especially when it comes to energy management. sub-meters provide detailed insights into how electricity is being used within a building. This information can:

• Explain Billing Discrepancies: Detailed usage data helps clarify why energy bills are at certain levels, providing transparency and reducing disputes.
   
• Guide Energy Management: By understanding usage patterns, businesses can implement more effective energy management strategies.
   
• Support Sustainability Goals: Accurate data helps businesses track their progress toward sustainability targets and make informed decisions about further improvements.

Next, we will look at the various applications of electrical sub-metering in residential, commercial, and industrial settings.

Electric Sub-Meters Regulatory Compliance

Overview of Ontario Energy Board (OEB) & Unit Sub-Meter Provider (USMP) Regulations

The OEB establishes guidelines and standards to ensure that sub-metering practices are fair, transparent, and beneficial to all parties involved. Unit Sub-Meter Providers (USMPs) must adhere to these regulations to operate legally and ethically.

Critical points of compliance include:

• Accurate Billing: sub-metering systems must ensure billing is based on precise usage data, minimizing errors and disputes.
• Consumer Protection: Tenants and consumers must be informed about their rights and the functioning of the sub-metering system.
• Regulatory Approval: USMPs must obtain the necessary approvals from the OEB before offering sub-metering services.

Compliance with EGIA & Measurement Canada Requirements

To ensure the highest accuracy and reliability, sub-metering systems in Canada and therefore Ontario must comply with The Electricity and Gas Inspection Act (EGIA) and S-E-02 Re-verification for the verification of electricity meters which are administered by Measurement Canada Regulations. These standards define meters used in Trade Measurement, must be approved for use, initially verified and sealed and periodically re-verified to ensure their performance and accuracy, ensuring they provide reliable data for billing and monitoring purposes.

• The Electricity and Gas Inspection Act (EGIA) is the law enacted by the Parliament of Canada to ensure accuracy in all Trade Measurement Applications across Canada which includes metering and sub-metering of electricity and natural gas. The Act is the law relating to the inspection of electricity and gas meters, including sub-meters and sub-metering systems.
   
• Measurement Canada is the federal agency who enforces the EGIA for all Trade Measurement Applications involving metering and sub-metering devices for electricity and natural gas, ensuring they meet strict accuracy requirements by first approving and inspecting meters, verifying proper installation, conducting periodic re-inspections and investigating complaints.
   
• The Electricity and Gas Inspection Regulations provide detailed requirements for EGIA compliance. These regulations lay out the specifications for meter type approval, meter verification and sealing, and meter installation and use which includes sub-meters and sub-metering systems used in multi-customer applications, involving trade or revenue metering purposes.
   
• S-E-02: Specifications for the verification and the re-verification of electricity meters.

Adhering to these regulations and standards is crucial for building trust with tenants and ensuring the legitimacy of the sub-metering system. It also helps avoid legal and regulatory issues that can arise from inaccurate billing.

Next, we will delve into how electrical sub-metering works, covering the installation process and the types of data collected.

Example Applications of Electrical Sub-meters

Multi-Family, Residential Electric Sub-metering in Ontario

Electrical sub-metering is widely used in residential buildings, such as apartments and condominiums, to achieve several key objectives:

• Tenant Billing: Each tenant is billed based on their actual energy usage, promoting fairness and accountability.
• Energy Efficiency: Tenants are more likely to reduce their consumption when they are directly responsible for their utility bills, leading to overall energy savings for the building.
• Improved Management: Property managers can monitor energy use in common areas and individual units, identifying opportunities for efficiency improvements.

Electric Sub-Meters for Commercial Properties

Commercial Sub-metering provides detailed insights that can lead to significant operational efficiencies:

 

• Office Buildings: sub-meters allow for precise allocation of energy costs to different tenants or departments, ensuring that each party pays their fair share.
   
• Shopping Centers: Retailers can manage their energy consumption more effectively, reducing overhead costs and enhancing sustainability efforts.
  
   
• Mixed-Use Developments: sub-metering supports the diverse energy needs of mixed-use properties, facilitating efficient management of both residential and commercial spaces.

Sub-Metering Use Cases in Industrial Settings

Industrial facilities often have high and variable energy demands, making sub-metering an invaluable tool:

• Factories and Warehouses: By monitoring energy use in different areas of the facility, managers can identify inefficiencies, optimize equipment performance, and implement load-shifting strategies to reduce peak demand.
   
• Manufacturing Plants: sub-meters help in tracking energy consumption for specific processes or machinery, enabling targeted improvements that can lead to substantial cost savings and enhanced productivity.

Next, we will discuss how to choose the right sub-metering system for your specific needs and requirements.

Conclusion

In this comprehensive guide, we've explored the fundamentals and benefits of electrical sub-metering in Ontario, focusing on compliance, implementation, and impact.

• Regulatory Compliance and Accuracy: Ensuring that sub-metering systems meet the existing regulations and standards set by the Ontario Energy Board and Measurement Canada is crucial for accurate billing and legal compliance.
   
• Financial and Environmental Benefits: sub-metering can significantly reduce energy consumption, cut costs, and increase property value while also supporting environmental sustainability.
   
• Implementation and Support: Effective sub-metering requires careful planning, installation, and ongoing support to maximize benefits and overcome potential challenges.

As a natural next step, consider reaching out to sub-metering providers like Sieco-Tech to explore customized solutions for your building. They can offer expert guidance, seamless installation, and ongoing support to help you achieve your energy management goals.

Frequently Asked Questions About Electric Sub-Meters 

What is a sub-electrical meter?

A sub-electrical meter is a device that measures electricity usage for individual units within a larger property. It's commonly used in apartments, commercial buildings, and shared spaces to track and bill each tenant separately for their energy consumption.

What is the disadvantage of a sub-meter?

The main disadvantage of a submeter is the installation cost, especially in older buildings. Sub-meters also require regular maintenance and may produce inaccurate readings if not properly installed or calibrated.

How much does it cost to install a sub-meter?

Installing a submeter typically costs between $300 and $1,000 per unit. Prices vary based on the building type, number of meters needed, and labor costs in your area.

How accurate are sub-meter?

Sub-meters are highly accurate, usually within ±1% of actual usage when properly installed and maintained. Digital sub-meter offer real-time monitoring and improved precision.

What is the difference between a utility meter and a submeter?

A utility meter tracks total electricity use for a property, while a submeter measures usage for specific areas or tenants within that property. Utility meters are used for billing by energy providers; sub-meter are for internal tracking or tenant billing.

How do you install a submeter for electricity?

To install a submeter, a licensed electrician connects it to the electrical panel serving the designated area. The meter is then tested and calibrated to ensure accuracy, and may be integrated into a monitoring system.

What is the difference between main meter and submeter?

A main meter records total energy usage for a building, set up by the utility provider. A submeter measures electricity use in individual units or systems, enabling more detailed tracking and tenant billing.

What is the point of using sub-meters?

A point of use submeter is installed directly on specific equipment or systems, like HVAC units or appliances. It tracks electricity usage at the exact source, helping pinpoint high-energy devices and optimize consumption.

How do I know if my sub meter is not working?

If your submeter shows no usage changes, unusual readings, blank screens, or billing inconsistencies, it may not be working properly. Have it inspected by a professional to diagnose the issue.