Submetering in real estate: what is it and why is it important?
Energy consumption in buildings is rarely evenly distributed. In complexes with multiple tenants, commercial units or mixed-use functions (such as offices, hospitality or apartments), some areas consume significantly more energy than others.
A submeter provides the solution.
A submeter – also known as a secondary meter – measures energy consumption within a larger connection point. This can include electricity, gas, heat or water per floor, unit or tenant. This provides detailed insight without the need for a separate grid connection for each user.
For property managers, operators and energy companies, this is essential to:
- Allocate costs fairly
- Monitor and optimise consumption
- Produce sustainability and regulatory reports
- Detect energy waste at an early stage
How does submetering work in property management?
A submeter is installed behind the main meter and records the consumption of a specific user, space or installation. The data can be read via:
- Manual meter readings (traditional and error-prone)
- Digital reading via EMS or ODA platforms (modern, real-time and reliable)
The measured data is then linked to consumption profiles or contracts, allowing property managers to automatically recharge energy costs.
Example:
An apartment complex has a single main connection for district heating. With submeters per apartment, heat consumption per resident can be accurately recorded and converted into billing data.
Read also: What is an ODA and why is it important for property managers?
Why submeters are becoming increasingly important in real estate
The role of submetering is growing rapidly, for three clear reasons:
1. Transparency and fair cost allocation
Residents and tenants want to know exactly what they are paying for.
Reliable submeters make it possible to calculate energy consumption per unit or tenant, creating transparency and trust.
This is also mandatory for many collective energy systems, such as block heating or thermal energy storage systems, where the Heat Act requires billing based on actual consumption.
2. Sustainability and monitoring
Submeters make energy losses visible.
By measuring in real time, managers can detect deviations, optimise installations and substantiate energy-saving measures.
With smart submeters combined with an energy management system (EMS), organisations can:
- Improve installation efficiency
- Reduce peak loads
- Report in line with ESG or CSRD guidelines
3. Legislation and regulation
The Dutch Collective Heat Act (Wet Collectieve Warmte) impose stricter requirements on transparency, data processing and reporting.
Property managers who redistribute heat or energy are increasingly considered “heat suppliers” under these regulations.
Submeters and reliable data processing therefore become not just a tool, but a legal necessity.
The role of the ODA: reliable data processing and billing data
As the use of smart meters and digital monitoring increases, so does the volume of data.
To process this information securely, reliably and independently, the ODA – Independent Service Provider – plays a central role.
An ODA is authorised to read metering data from the grid operator and use it for purposes such as:
- Consumption analysis
- Billing and cost allocation
- Energy efficiency and savings reports
- Monitoring at building or district level
For property managers, this means no more manual meter readings, but automated, validated data – directly from the source.
Read also: Billing data: fair and efficient energy costs for businesses
Case study: submetering in a multi-tenant commercial building
A property manager of a multi-tenant commercial building has a single electricity and heat connection.
Using submeters per unit, consumption per tenant is recorded and automatically forwarded to the Aurum EnergyGrip EMS platform.
The ODA processes the data into billing data, enabling fair monthly cost allocation.
At the same time, the data provides insight into peak consumption and efficiency, supporting maintenance and energy savings.
Result:
- Transparent billing for tenants
- Reduced administrative workload
- Better control over energy efficiency
Benefits of submetering in real estate
| Benefit | Description |
| Transparency | Tenants and users see their own consumption and costs |
| Fair allocation | Costs are based on actual usage rather than floor area or estimates |
| Savings | Insight motivates users to reduce energy consumption |
| Sustainability | Data supports CO₂ reduction and energy optimisation |
| Automation | ODA and EMS systems enable fast, error-free billing |
The future of energy metering in real estate
The future of energy management lies in data, automation and independence.
Where submeters were once primarily used for billing, they now form the foundation of data-driven property management.
ODAs and energy management platforms such as Aurum EnergyGrip ensure that metering data can be directly converted into actionable insights.
This transforms measurement into control — and billing into trust.
Frequently asked questions (FAQ) about submetering in real estate
What is a submeter?
A submeter measures energy consumption within a building or complex, for example per apartment or commercial unit.
What are submeters used for?
They are used for fair cost allocation, consumption monitoring and installation optimisation.
How is submeter data processed?
Through an ODA or EMS platform that automatically reads, validates and converts metering data into billing data.
Are submeters mandatory?
Yes, for collective heat and energy systems. The Heat Act requires measurement based on actual consumption.
What is Aurum’s role in this?
With EnergyGrip, Aurum provides a platform that reads submeter data, validates it and converts it into reliable billing data for real estate and energy management.