Many people understand shadow metering on a conceptual level, but few understand what it actually is.
Getting utility data from tenants has always been a challenge. Requests are ignored, bills arrive late, data is incomplete, and formats vary, making it difficult to fulfill reporting obligations.
Shadow metering is one available strategy to get tenant-controlled utility data. Done the right way, it’s low-cost, non-invasive, and guaranteed to get the job done.
Understanding Shadow Metering
Shadow metering involves installing dedicated sensors alongside traditional utility meters.
These sensors monitor electricity, water, or gas consumption without relying on tenant involvement, access to bills, or requests for information from the utility provider.
They are installed directly on the building’s infrastructure — such as electrical panels, water pipes, or gas meters — and do not replace existing meters, but rather “mirror” their readings.
Shadow metering works across a wide range of asset types where utilities are directly billed to tenants, including industrial, multifamily, retail, life science, medical office, and more.
By operating independently of existing utility meters and billing, it ensures that building owners and operators have direct access to utility consumption when needed for reporting to regulators and investors.
Since the data is collected through dedicated sensors and automatically, there’s no need to ask tenants for anything.
This operational autonomy reduces rework, improves data quality, and helps avoid friction in tenant relationships.
What’s the difference between this and submeters?
Functionally, shadow metering and submetering are the same thing. The different terminology is used to denote devices installed to bill tenants individually for their usage, versus those simply to track utility data.
One technical difference is that submetering for billing purposes requires revenue grade sensors. There is no such requirement for shadow metering, though revenue grade sensors are often used.
Does shadow metering work with Wifi?
It can, but there's no need.
In fact, many solutions are specifically designed to avoid relying on the building's infrastructure.
Generally, providers deploy dedicated cellular networks, eliminating the need to involve IT teams or depend on the building's WiFi.
This data is typically sent to the cloud in real time, allowing operators to access it via digital platforms.
How is the installation process?
Shadow metering is designed for simple installation, with minimal or no disruption to building operations.
In most cases, there’s no need to shut off power, and electrical sensors can be installed without tenant involvement. For water, no pipe cutting is necessary, and there’s no requirement for a plumber or electrician. For gas, the devices can be installed without interrupting service -.
As a result, installation doesn’t require major infrastructure changes or significant involvement from IT teams.
The process is easily repeatable across different assets, making it ideal for scaling across larger portfolios.
The time required depends on the building layout and system complexity, but a complete setup for electricity, water, and gas is typically completed within 1 to 3 days.
Are all shadow metering devices the same?
No. And the hardware selected directly affects both cost and system reliability.
Some devices are proprietary, meaning they only work with a specific solution. If the provider stops offering support or goes out of business, there’s no alternative. This kind of dependency can become a long-term risk.
On the other hand, there are non-proprietary devices. These offer more flexibility and help avoid what's known as “vendor lock-in.” The operator retains full control over the data and infrastructure.
There’s also an important difference in how data is collected. Multi-point solutions can monitor several loads with a single device. This reduces costs and simplifies installation.
What kind of data can I expect to get?
Shadow metering provides granular, real-time data on utility consumption.
In other words, the information is detailed, collected at high frequency, and automatically stored on your vendor’s platform.
Instead of only seeing bill totals, you get access to the complete dataset — including consumption, demand, and voltage on 15 minute intervals.
This data generates reliable insights, ready to support faster and well-founded decision-making.
Can this help with my ESG reporting? How?
Absolutely.
With consistent, high-frequency data, shadow metering significantly increases utility data coverage across your portfolio.
Improving data coverage can boost your GRESB score — up to 17.5 points are available across energy, water and GHG categories.
This makes it much easier to calculate emissions, benchmark asset performance, and meet sustainability frameworks — helping organizations achieve ESG goals while strengthening their credibility and access to sustainable capital.
Read more: The Business Risk of Not Having a Utility Data Coverage Strategy
In short, shadow metering is an easy, low-hassle way to get the utility data you’ve been missing.
If this has been a blind spot in your portfolio, it might just be the simplest fix out there.
