Submetering Hot Water in Multifamily Buildings
Last reviewed September 2026NES Editorial, checked by the Billing & Compliance team
Measure each unit's hot water use and bill residents for exactly what they consume.
How does hot water submetering work?
Hot water submetering installs a meter that measures how much hot water each unit uses, then bills the resident for that amount. The cleanest setup puts a standard meter on the incoming cold water line that feeds the water heater, since the water flowing in equals the hot water that comes out. When that is not possible, special hot water meters built to handle higher temperatures can go on the outgoing hot line after the heater instead. NES installs the meters, collects reads wirelessly every day, and bills residents monthly. Once residents pay for their own hot water, usage tends to drop and owners stop absorbing rising water and heating costs. Daily reads also catch leaks early through our MyReads leak detection. Most owners see payback in 12 to 18 months, and the total billed to residents never exceeds your master-meter cost.
Where the meter goes
There are two ways to meter hot water. The preferred method places a meter on the cold line feeding the water heater, because every gallon going in becomes a gallon of hot water. If the plumbing does not allow that, we use hot water meters rated for higher temperatures on the outgoing hot line. Either way, the result is an accurate per-unit measurement you can bill from.
Why owners meter hot water
- Residents conserve once they pay for their own hot water.
- Owners stop eating rising water and heating costs through rent.
- Daily wireless reads flag leaks and spikes early.
- Payback typically lands in 12 to 18 months.
Related questions
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Thinking about submetering your property?
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