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What is submetering
Submetering is a key tool for energy-efficient and future-proof buildings. It provides precise data on energy consumption at the unit, zone, or system level, enabling fair cost allocation based on actual usage rather than estimates. Submetering is essential for energy-efficient and future-proof buildings. It measures energy use at the unit, zone, or system level, ensuring fair cost allocation through consumption-based billing – where tenants pay only for what they use instead of fixed estimates. This promotes energy-conscious behaviour, reducing both costs and overall consumption.
How it works
Meters and submeters track real-time energy consumption, feeding data into energy management systems. This enables precise cost distribution and helps identify inefficiencies, optimise energy use, and support smart building solutions.
Why it matters
Submetering powers data-driven efficiency. By integrating with automation and optimisation technologies, it helps building managers reduce waste, predict maintenance needs, and improve sustainability—ensuring smarter resource use and lower emissions.
Studies
Numerous studies have demonstrated that implementing metering and submetering can lead to substantial energy savings. Research findings indicate that consumption-based billing through these devices typically results in energy savings of 15–30%, depending on the building’s energy efficiency and user behaviour.
Key studies supporting these findings include:
- Felsmann & Schmidt (2013) Found that consumption-based billing leads to energy savings of 20% in existing buildings and up to 30% in new buildings.
- Madlener et al. (2014, FCN Project Study) Highlighted that sub-annual billing information can enhance energy efficiency by encouraging behavioural changes among consumers.
- Felsmann, Schmidt & Mróz (2015) Conducted a potential assessment across multiple EU member states, confirming an average 20% reduction in energy consumption with metering and submetering.
- Eurac Research (2019) Reported savings ranging from 8% to 40%, depending on climate conditions and building characteristics.
- Canale et al. (2023) Found that individual metering in residential buildings led to a 14% decrease in daily energy consumption for domestic hot water and a 32% reduction in DHW volume usage.
Additional savings due to psychological and Behavioural Impacts
- Stumpf (2014) reported that behavioural changes alone accounted for a 9% reduction in energy consumption.
Beyond these efficiency gains, studies have highlighted that frequently provided data increases energy savings due to behavioural changes of the tenants. When residents receive detailed feedback on their energy usage, they tend to adopt more energy-conscious habits, leading to additional savings:
How digital submetering drives energy and water savings
Energy Efficiency
Heating and cooling account for 40% of the EU’s total energy use, with many buildings operating inefficiently. Our from Germany, Denmark, and Spain show how submetering and unlock up to 40% energy savings without major investments or compromising comfort. By and reducing waste, we ensure energy is used only when and where it’s needed.
Water Efficiency
Our pan-European study conducted by VITO demonstrates that digital submetering, combined with water leak detection and real-time feedback, can reduce household water consumption by up to 25%. This directly supports the EU’s Water Resilience Strategy target of a 10% improvement in water efficiency by 2030. Digital meters not only detect leaks but also to prevent waste and use water more mindfully.
Why It Matters
- : Up to 40% energy and 25% water reductions.
- Smart technology: Digital meters enable close to and leak detection.
- : Supports EU goals for energy and water efficiency.
EED Heat Cost Allocation Guideline
Developed in 2016 as part of a European Commission study, the Guidelines on Good Practice in Cost-Effective Cost Allocation and Billing of Individual Consumption of Heating, Cooling, and Domestic Hot Water in Multi-Apartment and Multi-Purpose Buildings support the implementation of Articles 13-15 of the recast Energy Efficiency Directive (EU/2023/1791) (formerly Articles 9-11 of Directive 2012/27/EU).
The guidelines provide a framework to help Member State authorities and building owners correctly implement consumption-based cost allocation and sub-annual billing requirements, ensuring that building users receive the right incentives and sufficient information to adopt energy-efficient practices. The approach is based on a multi-level assessment of cost allocation methodologies, considering technical feasibility, cost-effectiveness, building characteristics, and climate conditions.
With the increased emphasis on digitalisation and remotely readable metering in the recast Directive, the guidelines remain highly relevant. They continue to provide valuable insights on defining viable, open, and exempted building classes, optimising cost allocation methods, and ensuring compliance with EU regulations. WE Data Europe and its members actively contributed their expertise to the development of these guidelines, reinforcing their practical and technical credibility.
Member States' Submetering Approaches
This section presents an overview of how EU Member States implement submetering requirements under the Energy Efficiency Directive (EED). The analysis covers 15 countries and examines their national rules on individual metering, remote readability, feasibility assessments, allocation methods, billing practices, penalties, and most importantly the use of consumption data to improve system performance. Submetering plays a central role in helping residents understand and control their energy use while supporting building managers and public authorities in identifying inefficiencies and ensuring fair cost allocation.
The practices highlighted below reflect a range of approaches identified across Europe. They illustrate how clear legislation, transparent criteria, and the use of submetering data can support consumer empowerment and contribute to improved energy management in multi‑unit buildings.
