# Gas Submetering: Can You Submeter Natural Gas?

Source: https://submeter.com/submetering-natural-gas/
Publisher: National Exemption Service (NES), https://submeter.com. Last reviewed September 2026.

Yes in many states, not all. See how gas submeters measure and bill therms, when they fit your building, what install involves, and how to check the rules.

## Can you submeter natural gas?
Yes, you can submeter natural gas in many places, but not everywhere. Permission depends on state utility rules, local city codes, and the gas utility tariff. A licensed professional installs a diaphragm or rotary gas submeter on the gas line feeding each unit. That meter tracks the volume of gas burned by each individual furnace, water heater, or range. You then bill residents for their measured use at the utility's actual cost. The total billed to residents never exceeds the master-meter bill, which lets owners recover heating costs directly.

This guide explains how gas submetering works for owners and managers of communities with 80 or more units. You will see what state rules require, how the equipment functions, and what installation looks like for residents. It also explains how to check if your pipe layout supports individual meters.
## Is gas submetering allowed on your property?
Gas submetering is permitted in many places, but rules are stricter than those for water or electricity. Several states restrict or ban billing residents for gas, and rules often depend on the gas utility's own tariff. Some utilities allow it as long as you pass through gas at their exact cost without markups. Other utilities forbid private meters behind their master meter entirely.
Your property's address determines the exact rules. Two buildings in the same county can operate under different utility tariffs if a city boundary sits between them. Some states require approval before the first gas bill goes out. Check our guide to whether [submetering is legal](https://submeter.com/is-submetering-legal/) for more details.
Our in-house compliance team checks the rules for your property's address before quoting. NES (National Exemption Service) has billed utilities for multifamily properties since 1968. Our president serves on the board of the Utility Management and Conservation Association. We confirm local rules early so you never put in equipment you cannot bill against.

## How gas submetering works
Natural gas submeters measure the physical volume of fuel flowing to a resident's appliances. A submeter sits on the gas line inside or outside the unit. Our overview of [what submetering is](https://submeter.com/what-is-submetering/) covers the basics.
### The meter hardware
Gas submeters are diaphragm or rotary meters that meet ANSI B109 standards. Diaphragm meters have internal chambers that fill and empty to turn a mechanical register. Rotary meters use internal impellers for higher gas volumes. NES installs nonproprietary meters that you own outright, backed by a warranty. See our guide to [submetering meters](https://submeter.com/submetering-meters/) for more equipment details.
### Units of measurement and billing
Gas submeters measure volume in cubic feet. The utility company bills in therms, which reflect heat output. Billing software converts cubic feet into therms using the heat factor from your monthly master bill.
Modern wireless transmitters attach to each meter's output register. They transmit readings over a wireless network to an on-site data collector. That collector sends the data to our team for billing. Residents receive a bill for their measured use at the utility's cost, and common-area fuel stays with the owner.

## When gas submetering makes sense
Gas submetering fits buildings where each unit has its own gas appliances on a line that can be metered. A private furnace, a separate water heater, and a kitchen range must all draw fuel from that single pipe. If heat runs on electricity instead, see our [electric submetering guide](https://submeter.com/submetering-electric/).
| Property System Layout | Recommended Metering Approach | Equipment Location | Primary Billing Metric |
| --- | --- | --- | --- |
| Individual gas furnace, water heater, and range per unit | Natural gas submetering | Dedicated unit gas branch line | Cubic feet converted to therms |
| Central gas boiler providing domestic hot water | Hot water submetering | Cold or hot water line to unit | Gallons of hot water consumed |
| Central hydronic boiler for baseboard heat | Heat (BTU) metering | Hydronic supply and return to the unit | British thermal units (BTUs) |
| Shared gas lines with enclosed, inaccessible pipes | Ratio utility billing (RUBS) | No meters required | Occupants or unit square footage |
Central boilers need a different setup. Buildings with one central boiler sending heat or hot water through looped pipes cannot be split with gas submeters. Those properties are better suited to [submetering hot water](https://submeter.com/submetering-hot-water/) or heat metering. In those layouts, you measure hot water volume or thermal energy delivered to each apartment instead of gas burned at the boiler.
Ratio utility billing (RUBS) splits the master bill without meters. It uses a formula based on occupant count or unit square footage. RUBS requires no equipment, so recovery starts with the first billing cycle. Some states and cities do not allow RUBS, so NES checks your local rules first.
Can your property bill for gas?. Send 12 months of gas bills and your unit count. We check the rules for your address and reply within one business day.

## What installation looks like for residents
Installation is done by licensed professionals. Gas is shut off to the unit during the work, and appliances and pilot lights are relit and checked afterward. Residents get notice ahead of time, and no one moves out.
1. Advance resident notice. Residents receive written notice before work begins. The notice states when gas will be shut off and when technicians need access to the unit.
2. Line shutoff. Installers shut off the gas valve to the unit. A technician cuts the pipe, threads the fittings, and mounts the submeter on the line.
3. Pressure testing. The technician tests the new pipe connections with a pressure gauge to confirm the line holds pressure without leaks.
4. Appliance relighting. The installer turns the gas back on, bleeds air from the line, and relights pilot lights on the furnace and water heater. Each appliance is checked before the technician leaves.
Equipment and resident billing are usually live within a few weeks to about 90 days. Gas lines with clear access take the least time to complete.

## What landlords should know before billing for gas
Gas billing carries strict safety and legal obligations. State utility laws and gas codes set clear boundaries on what you can bill.
- Licensed installers. Natural gas lines require licensed mechanical contractors or master plumbers. They pull local permits, follow piping codes, and pressure-test every joint.
- Appliance relighting. Technicians must relight pilot lights and test heaters before finishing for the day. Plan the work so no one is left without heat or hot water overnight.
- Utility cost limits. Residents are billed for measured use at the utility's cost. Common-area use for pool heaters, laundry, or clubhouses stays with the owner.
- Billing fees. A monthly billing fee is allowed only where state and local law permits it.
- Lease language. The lease should say how gas is metered, how the rate is set and how a resident can question a bill.

## Cost and how to get a number
When residents pay for their own utilities, consumption drops. Most properties earn back the install cost in 12 to 18 months from the cost they recover, and some sooner. After that the recovery continues every year. Our guide to [submetering cost](https://submeter.com/how-much-does-submetering-cost/) shows how payback works.
Upfront costs depend on several property conditions. Indoor installations differ from outdoor setups, and new construction differs from retrofits. The biggest variable is how easy it is to reach each unit's gas line, which is why gas is quoted from a site survey.
NES offers financing for properties that qualify, so the upfront cost does not have to come out of pocket all at once. We also install nonproprietary meters that you own, backed by a warranty.

## Questions
**Is gas submetering legal in every state?**
No, gas submetering is not legal everywhere. Several states restrict or ban billing residents for gas, and rules can depend on the gas utility's own tariff. Some jurisdictions allow private submeters only if charges pass through at utility cost without markups. NES checks state regulations, county codes, and utility tariffs for your exact property address before providing a quote.

**How is gas usage measured and billed?**
Gas submeters measure fuel volume in cubic feet. The local gas utility bills in therms based on heat content. Billing software converts cubic feet to therms using the heat factor shown on the property's master bill. Residents are billed for measured use at the utility's cost, and the total billed to residents never exceeds the master bill.

**Who installs gas submeters?**
Installation is done by licensed professionals, such as master plumbers or licensed mechanical contractors. Working on gas pipes requires permits, threading equipment, and pressure testing. Installers shut off gas to the unit, install the meter, check the line for leaks, and relight all appliance pilot lights before restoring service. Residents receive advance notice before any work starts.

**What if my building has a central boiler?**
Gas submetering fits buildings where each unit has its own appliances on a separate line. If your property uses a central boiler to circulate domestic hot water or hydronic heat through shared loops, gas meters will not work. Those properties are better suited to heat or hot water metering. RUBS can also allocate costs using occupant counts or square footage.

**Can I add a fee to gas bills?**
You can only bill residents a monthly billing fee where state and local law allows it. In areas where fees are prohibited, you can only pass through the measured utility cost. NES checks the rules for your address to determine whether a billing fee is legal before setting up resident statements.

**Does gas submetering save money?**
Yes. Submetering shifts variable heating and cooking expenses from the property to the resident. When residents pay for their own gas use, they become more careful with thermostats and hot water. Most properties earn back the install cost in 12 to 18 months from the cost they recover, and the savings continue every year after that.