Submeter vs Direct Meter
Last reviewed September 2026NES Editorial, checked by the Billing & Compliance team
Two ways to put utility cost on residents, and who handles the billing in each.
What is the difference between a submeter and a direct meter?
Both move utility cost off the owner and onto residents, but the billing path differs. With direct metering, the utility company installs a meter for each unit and bills that resident directly, so the owner is out of the loop. That is not available everywhere because it depends on utility company rules and local regulations. With submetering, meters are installed on each unit and a company like NES reads them, bills residents, and can collect those payments and then pay the property's main utility bill. Either way, once residents pay for their own use, consumption drops because they have a reason to conserve. Direct metering depends on what the utility allows; submetering gives you control and works in far more situations. NES handles submetering for properties with 80 or more units, with wireless daily reads, nonproprietary meters you own, and an in-house bilingual team.
Who bills the resident
With a direct meter, the utility company bills the resident, like a single-family home. The owner does not touch it, but it is only possible where the utility and local rules allow individual accounts per unit. With a submeter, the billing runs through your submetering company. NES reads each unit, bills the resident, and can collect and then pay the master bill, so you keep control even where direct metering is not offered.
How they compare
- Direct meter: utility company installs and bills each unit; not available in many properties due to utility and local rules.
- Submeter: meters on each unit, NES handles reads and billing, available in far more situations.
- Both reduce use because residents pay for what they consume; water typically drops 15 to 30 percent under submetering.
Related questions
Get submetering and compliance updates
A short email when we publish new guides or a state changes its billing rules. No sales sequences, and you can unsubscribe any time.
We handle your email as described in our privacy policy.
Thinking about submetering your property?
NES installs the meters, reads them, and bills your residents, in-house since 1968. Send your property details for a free, no-obligation estimate.
Prefer a form? Open the quote page.