Submetering and Energy Efficiency
Last reviewed September 2026NES Editorial, checked by the Billing & Compliance team
When residents pay for their own use, the whole property uses less.
Does submetering improve energy efficiency?
Yes. Submetering improves energy efficiency because it ties usage to the person who controls it. When residents are financially responsible for their own water and electricity, they use less. NES data consistently shows that once people pay for what they consume, consumption drops. The effect even spreads across utilities. Submetering water cuts water use, which in turn lowers the energy a water heater burns to heat it. Submetering electricity cuts electric use directly. Water use alone typically falls 15 to 30 percent on submetered properties. Beyond the savings, daily wireless reads help catch leaks early, which avoids waste from water that would otherwise run unnoticed. NES installs the equipment, which you own with a warranty, and handles billing for properties with 80 or more units across more than 43 states. The investment usually pays for itself in 12 to 18 months.
Why metered use drops
People conserve when the cost is theirs. Under a single master bill, no individual has a reason to cut back. Once each unit is metered and billed for its own use, residents pay attention, and NES data shows consumption falls. It is the same reason a homeowner watches the thermostat more closely than a hotel guest does.
Efficiency gains that add up
- Water use typically drops 15 to 30 percent.
- Lower hot water use means a water heater burns less energy.
- Electric submetering reduces electricity use directly.
- Daily reads catch leaks before they waste more.
Related questions
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