A map of submetering laws around the country - making strides toward achieving tenant energy efficiency

By Better Buildings Commercial Real Estate Team on Mar 23, 2017

Leaders in the commercial real estate (CRE) sector have indicated a market need for information about the legality of submetering throughout the country.

According to DOE's Energy Efficiency in Separate Tenant Spaces Report, achieving greater levels of tenant energy efficiency is feasible through the use of technologies that exist in the market today. In particular, the study finds that American businesses can occupy more energy-efficient spaces that help improve their bottom line, attract and retain the best workers and increase their competitiveness. According to the study, energy efficient tenant space can be built to save 10 to 40 percent energy compared to a typical space, with a return on investment well over 100 percent.

There is confusion in the marketplace regarding demand for tenant space efficiency - due to lack of sufficient tenant energy consumption data. The study determines that a significant increase in separate metering of tenant spaces would help overcome this barrier and encourage more widespread uptake of energy efficiency measures in leased spaces.

Metering tenant-specific energy use offers the ability to separate out individual tenants' energy usage from a building's common area usage. This "submetering" helps ensure that each tenant pays for their energy consumption, and receives the full benefit of energy cost reductions, helping to overcome the landlord-tenant split-incentive barrier. 

To encourage tenant level submetering and decrease confusion about conflicting laws across the country, Aquicore has launched an interactive database and map that details submetering legislation by market, for commercial and residential buildings.