Fair Billing, Bright Futures
Embrace Sub-Metering in Master-Metered Buildings!
Sub-metering in master-metered buildings simplifies billing and brings brighter prospects for energy efficiency. Most co-op and condo owners in New York City are either directly metered by ConEd, or already sub-metered. However, there is still a small percentage of buildings that are master-metered. Those buildings need to install sub-meters in apartments greater than 5,000 square feet before January 1, 2025 to comply with Local Law 88. This law was passed in 2009 as part of the Bloomberg administration’s Greener Greater Buildings Plan.
How Master-Metering Works:
Master-metering is when a building has one or a few ConEd meters for the entire building, but not for the individual apartments. In this type of scenario, the residents do not pay for how much electricity they use. Instead, they pay for their allocation of the total electricity used by all residents. This charge is typically included in the maintenance in co-ops or common charges in condos.
How Sub-Metering Works:
Sub-metering entails installing individual utility meters for each residential unit. These meters accurately measure electricity usage, allowing for personalized billing based on actual consumption. Sub-metering benefits those that use less than average electricity and costs more for residents that use more electricity than the average in the building.
Apartment dwellers in buildings that are sub-metered or directly metered tend to use less electricity, about 20% less. When you know how much electricity you use and pay for it yourself, you might think twice about turning the Air Conditioner on when it’s only 68 degrees, or leaving the lights on when going to work.
The Law:
LL88 was passed in 2009 as part of the Bloomberg administration’s Greener Greater Building Plan. Like
LL84 and LL97, LL88 covers all buildings greater than 25,000 sq ft and has 3 major components:
LED-lights in common areas: bye-bye to fluorescent lights, CFL, halogen, or incandescent lights.
Motion sensors in common areas that need to turn off or dim down 15 minutes after people leaving the area.
All apartments greater than 5,000 square feet need to have their own electrical meter.
Benefits of Sub-Metering:
Fair and Transparent Billing: Residents pay only for their actual electricity usage, promoting fairness and transparency in billing.
Energy Conservation Incentive: With individual billing, residents become more mindful of their energy consumption, leading to reduced overall energy usage.
Cost Savings: Sub-metering empowers residents to adopt energy-efficient practices, potentially lowering their electricity bills and saving money in the long run.
Challenges and Solutions:
Upfront Costs: Installing sub-meters isn’t cheap, but the long-term savings outweigh the expense.
Location and Space: Finding proper locations for sub-meters can be challenging, but as co-op and condo consultants, we are frequent visitors of basements and often see that basements are underutilized. If there’s a will, there’s a way.
Additional Administration: Managing individual billing can be burdensome, but third-party companies can handle the reading and billing tasks efficiently.
Communication and Education: Clear communication and education for residents are essential for a smooth transition to sub-metering.
In conclusion, sub-metering in master-metered buildings brings fairness, cost savings, and energy conservation opportunities. The law was passed in 2009 and gave buildings 15 years to comply, yet, there are still buildings that haven’t acted at all. While there are challenges to address, embracing sub-metering promises a brighter, greener future for the buildings and the Big Apple. Embrace change and lead the way to sustainable living!
The Folson Group is a NYC energy efficiency consultant, helping buildings with all their Environmental, Social, and Governance (ESG)-related policies. Services cover the entire process, from planning to implementation and completion, and clients have achieved energy reductions of up to 40%. If you are interested in making your building more energy efficient and environmentally friendly, consider reaching out to The Folson Group to schedule a free consultation.