Submetering Meaning
Last reviewed September 2026NES Editorial, checked by the Billing & Compliance team
A clear, short definition of submetering and what it does for a property.
What does submetering mean?
Submetering means billing a unit for its own utility use by installing a meter that measures the water, gas, or electricity that unit consumes. The submeter sits between the property's main utility meter and the individual unit, which lets you measure and bill that exact use to the resident who created it. The term applies to multifamily and commercial properties alike. In practice, submetering is how an owner stops absorbing one master bill and instead has each resident pay for what they use. That shift is what reduces consumption, with water use typically dropping 15 to 30 percent. NES provides submetering equipment and billing for properties with 80 or more units, with nonproprietary meters you own and a warranty, wireless daily reads, and an in-house bilingual support team. Submetering is regulated and the rules change often, so NES monitors them daily for the communities we serve.
Where the meter sits
A submeter is installed downstream of the property's main utility meter and upstream of the individual unit. The main meter still records what the whole property pulls from the utility. The submeter records what one unit pulls. That second reading is what makes per-resident billing possible, instead of one bill the owner has to split or eat.
What the term covers
- Utilities: water and sewer, gas, and electric can all be submetered.
- Property types: apartments, mobile home parks, townhomes, condominiums, and commercial units.
- History: submetering has been used since it was invented in the 1920s.
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