Submetering Regulations
Last reviewed September 2026NES Editorial, checked by the Billing & Compliance team
Submetering rules change often and vary by place, so know what applies before you install.
What regulations apply to submetering?
Submetering is allowed in most places, but the rules vary by state, county, and city, and they change often. Water rules differ widely: some places encourage submetering, others limit how you install meters or bill residents. Gas rules vary by state and locality. Electric is the most regulated, and some states require approval before you can bill residents for electricity. Common themes across the rules are meter accuracy, installation and maintenance standards, what you can charge, whether you can add a fee, and resident protections. The safest move is to confirm the current requirements and get any permits before you install. NES has an in-house compliance team that tracks these rules across the states where we work and sets up billing to match. This page is general information, not legal advice, so check the specific rules for your property or let NES handle it.
Rules differ by utility and by place
- Water rules vary by state and city, from encouraged to limited
- Gas rules vary by state and locality
- Electric is the most regulated, and some states require approval first
- Permits are often required before any meter goes in
Common requirements across the rules
- Meter accuracy, with water meters often tested before they go into service
- Installation and maintenance standards for the equipment
- Billing residents at the utility's cost, with no profit on resold utilities in most states
- Limits on whether an administrative or billing fee is allowed, and how large it can be
- Resident protections, including lease disclosure of how utilities are billed
How the rules look in a few states
A few examples show how much the detail varies. Texas regulates water and sewer submetering through the Public Utility Commission of Texas under 16 Texas Administrative Code Chapter 24, and owners must register before they bill residents. Georgia requires water submetering in much new multifamily construction. California lets owners bill residents for measured water use at the utility's own rate with no markup on the water, plus a capped billing fee (the lesser of about $4.75 per unit or 25% of the usage charge) under the Civil Code. Florida regulates water and wastewater submetering through the Florida Public Service Commission. On top of the state rule, counties and cities such as Miami-Dade can add their own registration or billing requirements, so the rule for your exact address is what matters.
How NES keeps you compliant
Because the rules change frequently and vary by state, county, and city, NES keeps an in-house compliance team that tracks them and sets up billing to match each location. That removes the burden of monitoring every jurisdiction yourself. This page is general information and not legal advice, so for your specific property, confirm the local rules or let NES handle compliance for you.
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