Resource Hub
What is submetering
How it works
In multi-unit buildings, submetering measures individual consumption of utilities, including cold and hot water and heating and cooling energy. Instead of splitting costs by apartment size or surface area, each resident pays only for what they actually use. Digital energy and water submeters send their readings wirelessly via a radio signal allowing data to be collected remotely.
Why it matters
It improves fairness, fosters efficiency, and gives occupants greater control over their consumption. Submetering can reduce energy use by up to 20% and cut water consumption by as much as 25% in buildings.
How digital submetering drives energy and water savings
Energy Efficiency: Building optimisation and behavioural change
Numerous studies show that metering and submetering can also deliver additional energy savings through consumption-based billing. It can reduce energy use by 15–30%, depending on building characteristics and consumer behaviour.
Key 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.
Submetering data can unlock even more savings, as many buildings are operating inefficiently. Our real-world case studies from Germany, Denmark, and Spain show how using submetering data for heating optimisation unlocks up to 40% additional energy savings without major investments or compromising comfort. By optimising heating settings and reducing waste, we ensure energy is used only when and where it’s needed.
Water Efficiency: Leak detection and real-time feedback
A pan-European study conducted by VITO (2025) and commissioned by WE Data Europe demonstrates that digital water submetering, combined with 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 provide households with actionable insights to prevent waste and use water more mindfully.
Why It Matters
- Proven savings: Up to 40% energy and 25% water reductions.
- Smart technology: Digital meters enable close to real-time feedback and leak detection.
- Policy alignment: Supports EU goals for energy and water efficiency.
EED Implementation Analysis
This analysis presents an overview of how EU Member States implement submetering requirements set out in the Energy Efficiency Directive (EED). It covers 15 countries and examines their national rules on individual metering, remote readability, feasibility assessments, allocation methods, billing practices, penalties, and identifies best practices on the use of consumption data to improve system performance and support building renovations.
The best practices 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. The analysis showcases why the successful implementation of EED provisions on submetering are essential to improve energy efficiency on the ground.
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.
