Worried about your building's total electricity load? You are not alone. More residential complexes in Chicago and around the world are looking at different options to optimize electrical load. While everything from construction planning to electrical design helps, here's what you should know.
There are two different ways that large multi-family residential buildings in Chicago are measured for electricity consumption:
– Direct measurement
– Sub-measurement under master measurement.
If you're wondering which option is best for you, the answer isn't as simple as you'd like. Here's a look at everything you need to take a look at.
Direct Measurement
In buildings with direct metering, each family unit or apartment is measured individually by the concessionaire responsible for supplying electricity. The meter is also the property of the utility company. Under direct metering, each residential unit in Chicago receives their home's electricity bill from the utility at a residential rate. For multi-unit buildings, the utility sends an electric bill for electricity use in common areas at the commercial retail rate.
Master Measurement
Chicago buildings with master metering have their electricity supplied by the utility, and the utility has a single meter for the entire building. The utility bill only charges the building owner, usually at a rate due to which the bill is lower than the normal residential retail rate. Residential units in the building are not measured separately and the amount of electricity consumed by each apartment is not calculated or used to determine the electricity bill.
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Difference Between Direct Measurement and Master Measurement
In the case of direct metered residential buildings in Chicago, residents pay only for the amount of electricity that is actually consumed by them, while in the case of master metered buildings, the owner divides the cost of the total electricity bill among all residents without taking into account the amount of electricity consumed by each unit in the building. Master metering is charged in several ways, either by dividing it equally between all apartments or by charging for the size or number of residents in an apartment.
Submetering: the combination that works for both
The sub-metering billing system is the efficient way that presents the advantages of direct and master metering systems. Submetering is another submeter that receives electricity from the master meter and allows building owners to measure electricity usage in individual units by a submeter that is owned by the building and not the utility department.
The building still receives electricity at a cheaper commercial rate or a bulk residential rate, but the owner can charge individual apartment units electricity rates based on their actual consumption. The Chicago utility sends just one bill to the building owner, which the building owner then divides among residents based on the usage shown by their respective meters.
Residents of the building do not need to pay utilities and the owner-builder remains responsible for paying electricity bills.
Why is sub-metering better than direct measurement?
Sub-metering has several benefits over master measurement or direct measurement
- Homeowner and residents can use electricity at lower costs
- Entry to apartments is not necessary to read submeters
- Sub-metering promotes energy consumption
Chicago building owners often do not charge residents separately for utilities but include the charges in the rent. Because of this, residents may not try to save energy, and even if they do, they may not be aware of how much energy they are saving. Therefore, if a building owner decides to install a new boiler or carry out other renovations, they must also install sub-meters.
By doing so, they can:
Save Energy – Switching from main metering to sub-metering can reduce each apartment unit’s electricity consumption by up to 10%-25%.
Lower utility costs – Building owners get electricity at cheaper prices, the benefits of which are also utilized by tenants or apartment owners.
Energy tariffs are charged according
Since taxes are measured on the amount of electricity used, residents only pay for what they use. According to the data, 20-26% of Chicago's electricity usage, the building is only used by 10% of residents. Under master metering, these residents would have paid the same as other residents.
Sub-metering is beneficial for about 65% to 70% of residents. The only people who can do more are those who use the most electricity.
Sub-metering helps owners – Sub-metering allows building owners to set a predictable electricity budget because they only need to pay electricity rates for common areas, regardless of whether the building is a condominium, co-op, or rental building.
Helps the environment – Sub-metering is beneficial for the environment and energy companies as less energy is wasted and less energy is consumed, which in turn means less energy is generated, therefore less amount of fossil fuels are used, which are still the primary method of generating power in Chicago. Burning less fossil fuels means less environmental pollution and better air quality.
Why are sub meters better than direct meters?
Here's a look at how submeters may be the best options for large buildings with more residents.
- Submeters promotes energy conservation among building residents as they do not want to be seen as wasting resources.
- Submeters offers a cheaper electricity rate for building residents since electricity is purchased retail by the building owner at a cheaper rate than directly metered electricity.
- Sub-meters are also convenient for building owners as they only need to pay a fixed amount for electricity used in common areas.
- Moving from direct metering to master metering to sub-metering brings a big discount to residents of Chicago apartment buildings.
Why submeters aren't used much in practice
Despite the advantages, sub meters are not as popular for home use for a few reasons.
- Submeters are expensive and cost around $400 to $500 per unit.
- Monthly reading also includes some charges.
- Lack of space to install meters.
- Few building owners are prepared to make such an investment and, likewise, not all residents can agree to pay for the installation of sub-meters in their homes.
If you are looking for a sub meter for your Chicago home, you will need to check whether it will be cost-effective for you. For large buildings, this may well be the case.
