How Water Submetering Works
Water submetering involves installing individual water meters for specific locations to measure the exact water consumption for that area. This is a common practice in multifamily or commercial buildings, where there may be different groups or departments consuming water on the same site.
Because water usage can vary considerably, from toilets to industrial processes, it can often cause cost disparities for businesses. For example, a three-bedroom unit with five people will probably consume more water than a studio with a single person. So, it may not make sense for all families to pay the same fee for water. Water submetering aims to avoid that, providing more transparency and efficiency for water management.
In the article below, we’ve covered:
- The definition and what to expect from water submetering.
- The types of water submeters.
- How water submeters can help reduce costs.
- Submetering regulations across Canada
- Canada-wide submetering services.
Water submetering is about measurement. It is about operational intelligence, cost control, sustainability, and risk management. It brings facts instead of assumptions, representing a shift from supposition-based to data-based accountability billing. For modern businesses facing rising water rates and sustainability expectations, that is an effective investment, as well as budget-friendly in the long term. The costs of a submeterting system installation usually have a payback of less than two years.
Advantages and Disadvantages of Water Submetering
Water submetering pros
- Transparency: Submetering brings more transparency by separating usage and revealing patterns. For a big industry, for example, it could help it identify which business sections or departments are the most water-intensive.
- Fairer billing: When consumers are billed based on their consumption, there are fewer usage-related shared concerns. Each customer pays for what they use instead of covering for high-consumption neighbours. This could also have a positive impact on neighbour relations.
- Spot issues more easily: When units are metered individually, there are higher chances of an earlier evaluation of potential waste or issues, such as hidden leaks, excessive consumption, plumbing failures, unauthorized connections, inefficient systems, and billing discrepancies.
- Real-time data: High-tech submeters can transmit usage data in real time to cloud-based dashboards, allowing facility managers to monitor trends daily rather than waiting for a monthly utility statement. Some alerts can be triggered within hours. The early detection of leaks can prevent losses, production breaks, maintenance, and costly changes, as a single undetected pipe failure can generate thousands of dollars in water and sewer charges.
- Increased sustainability and conservation: The precision and awareness brought by submetering can help businesses and homeowners to reduce water waste, thus becoming more eco-friendly. According to a report by the American National Apartment Association (NAA), properties with submetering systems can decrease their water consumption by 15% to 30%.
The disadvantages of water submetering
One of the reasons why water submetering is growing so fast in Canada is that it comes with many more pros than cons. However, like everything else, it has its share of potential issues.
- Upfront costs: Although the water submetering installation costs are usually recovered in less than two (sometimes one) years, they do come with higher initial costs, especially at large-scale operations.
- Lack of contractual clarity: Depending on how the water submetering system is installed – and how that is informed to tenants -, there may be a lack of clarity regarding common topics, such as service disruptions, unpaid charges, and emergencies. Tenants often don’t know who to contact in different situations. Although a real issue, this can be 100% avoided via clear guidelines and manuals.
Water Submetering Types
The most common for commercial use are:
Mechanical Submeters
Well-suited for apartments, retirement residences, condos, and where demand is predictable.
- Most common in the past and found in old buildings.
- Requires manual reading.
- The rotation speed corresponds to the flow rate.
- Affordable and reliable for basic applications.
- It doesn’t require power.
- Less precision than smart ones.
Smart Water Submeters
Valuable for businesses where data and operational control matter as much as billing, as these systems provide real-time monitoring. As hospitality businesses, industrial and manufacturing facilities.
- Wireless monitoring, providing remote reading.
- Provides real-time data, storing and analyzing usage.
- Analyzes flow patterns to early detect leaks or waste.
- Remote control (to shut off valves, for example).
- High accuracy.
Ultrasonic Submeters
As they provide high accuracy and detailed consumption data, it is ideal for businesses such as large multi-residential buildings, medical or pharmaceutical production facilities, and green buildings.
- Use ultrasonic waves to measure water flow without moving parts.
- Highly accurate and low maintenance, as it lasts in average 15 to 20 years.
- Resistant to debris.
- Most of them provide wireless data transmission, remote reading (as smart ones), and leak alerts.
- Depending on the model, it can be installed in-line or externally.
Electromagnetic Submeters (or Mag Meters)
Not sensitive to debris or minerals, this option is an effective one for commercial and industrial environments, such as textile factories, food and beverage processing, farms (irrigation system), for example.
- High precision.
- Requires power.
- Work well even if the water contains minerals or sediments, or small debris.
- Measure flow using electromagnetic fields.
- Works well for large diameter pipes and commercial infrastructure.
- Pricey compared to other types of water submetering.
How to Decrease Utility Rates with Water Submetering
When a company is billed based on actual usage, consumption tends to decrease as a result of habit changes. This allows organizations to identify and act on the specific highest water-consuming departments or sectors. For multi-residential buildings, it gives tenants the opportunity to decrease or increase as they see fit.
With water submeters, businesses have the ability to allocate costs more precisely and detect anomalies early, decreasing or avoiding maintenance. Another point to highlight is that water is everywhere, from cooling, processing, cleaning, and production in many cases, so understanding exactly where water is being consumed, and tracking the water efficiency opportunities, can reduce both water and energy costs simultaneously.
For all these reasons, in many cases, the return on investment for submetering systems materializes within a few years or even in a short time, depending on each case (water use, company’s size, internal processes, and daily needs). As mentioned above, according to the Verified Market Reports, the National Apartment Association (NAA) reported that properties equipped with submetering systems can reduce water usage by 15% to 30%.
Submetering: Sustainable and an ESG Tool
Many countries, such as Canada, are taking sustainable measures to reduce pollution and waste. Water efficiency has become central to this topic and can work as a great ESG program for businesses. The reason why is that meaningful sustainability reporting requires accurate data, and submetering is one of the paths to achieve that.
They provide the data infrastructure needed to support credible environmental reporting, enabling businesses to calculate water intensity metrics, track progress toward conservation targets, and support green building certifications. This transparency enhances credibility for any type of business.
Provincial Submetering Regulation in Canada
Before implementing water submetering, businesses must look for regulatory frameworks that can vary depending on the location. That is why it is important to contract an experienced company for the service, as ignoring standards can lead to legal complications and even water service disruptions.
| Federal | Weights and Measures Act. |
| Alberta | Alberta Utilities Comission |
| British Columbia | British Columbia Utilities Commission |
| Ontario | Ontario Energy Board Act. Unit Sub-metering Code |
| Quebec | Regie de l’energie |
| Manitoba | Manitoba Public Utilities Board |
Canada-Wide Water Submetering Companies in Canada
Water submetering is about transparency and precision, so we’ve listed below some of the top-rated companies in Canada for this service:
Canada Utility Management
Features
Canada Utility Management offer varies services related to water, such as Ratio Utility Billing Systems, Vacant Cost Recovery, Automated Invoice Processing, Utility Benchmarking, Submetering, and others. According to the website, since 2007 the company is focused on providing customized utility solutions for communities that encourage energy conservation, and the water submetering is one of them.
They  recommend products that will perform well for each case besides designing, coordinating installation, and maintaining submeters (which generally have a lifespan of 10 to 15 years) as well, for both new construction and retrofits. One information to highlight is that they implemented code-compliant submetering and billing for electricity, gas, and water, as allowed by the regulations where your community is located, which ensures safety.
Water Conservation Company Ltd.
Features
With over 30 years of expertise saving, the company, according to the website, is recognized as an authority in helping building owners and property managers reduce their water consumption and costs (by 75%).
One of their services (water leakage control services, water saving fixtures, water pressure booster pumps, and others) is the wireless water submetering, dedicated to transforming water management through our innovative wireless solutions. A cost-effective way to monitor and reduce water expenses.
Canadian Submetering Solutions
Features
The company works with water, hydro and gas submetering installation and commissioning accompanied by industry leading project management. To ensure safety and that the standards are being followed, services are provided by technicians are Licensed, Certified, Insured, Experienced and Trusted.
Regarding specifically about submetering, Canadian Submetering Solutions provide master technicians for all of your plumbing, electrical and gas Submetering needs.
Power Stream Energy Services
Features
The company is focused on providing developers, condominium boards, property managers, property owners and electrical engineers with top tier sub-metering and billing solutions across Canada. The goal is bringing submetering solutions that will save time and money in the long term from businesses to residential places.
According to PowerStream, their sub-metering systems can help on savings from 15 to 30% through reduction in water usage, which can be followed remotely (data recorded), giving you accurate consumption data.
The Latest Submetering Technology
The future is digital for water submetering, too. Less precise, although more affordable, traditional mechanical meters that require manual readings are gradually being replaced by ultrasonic and electromagnetic technologies capable of remote data transmission, where employees or tenants can check water system statuses from everywhere.
Versatile and complete, smart metering platforms now integrate with building management systems, enabling centralized oversight of water, energy, and gas consumption. With artificial intelligence tools, new submetering systems can analyze usage patterns to predict any issues related to water usage.
Reviewing commercial water treatment options and costs
Looking to reduce your water costs? Check our Water Hub, which covers a wide range of water efficiency tips for both homes and businesses. EnergyRates.ca can also help you review and reduce your utility costs beyond water usage. Our experienced team of energy consultants can support you in comparing plans for your commercial, large commercial or industrial operations.
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