Master vs Direct vs Sub Metering - What's The Difference?

There are three types of electricity metering solutions: Master metered, direct metered, and sub-metered. Master and direct metered solutions are fairly straightforward, but sub-metering is a critical third category that is sometimes overlooked. Sub-metering is an addition to master metering, and not every master-metered building has sub-metering. 

However, every sub-metered building is master metered. In direct-metered buildings, residents are responsible for setting up their own electricity accounts with their local utilities. However, in master and sub-metered buildings, residents cannot set up individual accounts because the building is already being metered as a whole.

We listed them out below along with pros and cons.

Master Metered:

• Description: A single meter measures the total electricity consumption for an entire building or complex. This includes common areas and all individual units.
• Billing: The property owner receives one bill for the entire building's electricity usage. It's up to the property owner or manager to then allocate the costs among the individual tenants. This can be based on square footage, number of occupants, or a flat rate for each unit.
• Pros: Simplified utility infrastructure with just one meter to maintain.
• Cons: Individual tenants don't have a direct incentive to reduce their energy use since they don't receive individual bills based on their actual usage. It can also lead to disagreements among tenants, especially if some use more electricity than others.

Sub-metered:

• Description: In addition to the master meter, each individual unit or tenant has its own sub-meter that measures its specific electricity consumption.
• Billing: The property owner receives a bill for the total building usage (via the master meter) and then bills each tenant based on their sub-meter readings.
• Pros: Tenants are billed based on their actual energy consumption, encouraging energy conservation. It's also more equitable than master metering alone.
• Cons: The cost and complexity of installing and maintaining multiple sub-meters. Additionally, the property owner or manager has to handle individual billing for each tenant.

Direct Metered:

• Description: Each individual unit or tenant has its own meter that is directly connected to the utility provider, and there is no master meter for the entire building.
• Billing: Each tenant receives a bill directly from the utility provider based on their individual meter readings. Common areas may have their own separate meter and billing.
• Pros: Tenants have full transparency into their energy use and bills. Billing disputes are typically handled between the tenant and the utility provider, not the property owner.
• Cons: The cost and complexity of installing and maintaining multiple meters. The property owner has less control over electricity management in the building.

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