Submetering explained for businesses

4 min readLast updated 6 August 2026

Direct answer

Submetering is the placing of extra intermediate meters behind the main utility meter, so you see consumption per department, machine or part of a building separately. The simplest submetering explanation: the main meter shows what the whole premises draws, while submeters split that total into separate parts. So you know not only how much energy comes in, but exactly where it goes.

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Submetering explained: scattered information versus Energy Intelligence

A building has one connection and one main meter, and the energy bill arrives as one amount. That tells you what was consumed in total, but not where it went. A production hall, a cooling installation and an office wing all disappear into that single figure. Submetering solves this by placing meters behind the main meter. It matters to anyone who wants to allocate or steer consumption: facility managers, businesses with multiple processes, and organisations setting up an energy management system.

  • The main utility meter measures the total consumption of the premises for the supplier; submeters sit behind it and divide that total across separate departments, machines or parts of the building.
  • With consumption per part you allocate costs to the right place, track down major consumers and build performance indicators per process.
  • Submetering costs installation, generates a lot of measurement data and requires maintenance; measure where the insight leads to a decision.

Insight

Traditional approach

Information is scattered across portals, documents, invoices or separate spreadsheets.

Modern approach

Data, context and interpretation are brought together into a clear decision picture.

Decision-making

Traditional approach

Choices are made based on averages, assumptions or occasional analyses.

Modern approach

Scenarios, KPIs and current measurement data make the trade-off more concrete and repeatable.

Follow-up

Traditional approach

Actions often stay non-committal or disappear into separate reports.

Modern approach

Follow-up actions, monitoring and reporting are linked to the same energy data.

How does a submeter differ from the main meter?

The main utility meter sits at the transfer point with the grid. That meter is the basis for your invoice and measures everything the premises draws or feeds back as a whole. A submeter sits behind it, within your own installation, and measures part of that total. You place submeters on a distribution board, a circuit group, a single machine or a part of the building. Together the submeters ideally add up to what the main meter records, only broken down. The main meter belongs to the grid operator or metering party; the submeters you place and manage yourself. They serve internal insight and internal allocation, not the official settlement with your supplier.

  • The main meter measures the total at the transfer point and is the basis for the invoice.
  • Submeters sit within your own installation and measure part of that total.
  • You can measure per distribution board, circuit group, machine or part of the building.
  • The main meter belongs to the grid operator; submeters you place and manage yourself.
  • Submeter readings are for internal insight, not for the official settlement.

What does submetering give you?

With only a main meter you know consumption is high, but not what causes it. Submetering makes that visible. You allocate consumption to the department, tenant or machine that causes it, which enables fair cost sharing. You track down major consumers: an installation that draws far more than expected, or a device that keeps running at night. And you can build performance indicators per process, for example consumption per unit produced or per square metre. Energy management standards such as ISO 50001 rely on such indicators and on measuring at the points that truly matter. Without a breakdown the incentive to tackle inefficiency is missing, because the costs disappear into the total.

  • Allocate consumption to a department, tenant or machine for fair cost sharing.
  • Track down major consumers and standby loads that stay invisible in the total.
  • Build performance indicators per process, such as consumption per unit or per square metre.
  • Provide the evidence base for an energy management system such as ISO 50001.
  • Measure the effect of a measure at the spot itself, instead of in the overall figure.

What are the limits?

Submetering has limits. Each meter costs purchase and installation, and sometimes an electrician has to open the distribution board to fit a meter or current clamp. More meters also mean more measurement data: that stream of values wants to be read in, stored and displayed somewhere, otherwise it yields no insight. And meters need maintenance; they can drift or fail, and then the breakdown no longer adds up. The trap is wanting to measure everything. Measure at the points where the insight leads to a decision: the large consumers, the departments you want to bill separately, the processes whose performance you want to follow. Start small and expand where the measurement pays off.

  • Each meter costs purchase and installation, sometimes with work on the distribution board.
  • More meters yield a lot of measurement data you have to read in, store and display.
  • Meters can drift or fail and require periodic maintenance and checking.
  • Wanting to measure everything is a trap; measure where it leads to a decision.
  • Start with the large consumers and expand where the measurement pays off.

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