7 Sub-Metering Benefits for Manufacturing
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7 Sub-Metering Benefits for Manufacturing

November 18, 2025 ajneal4uk@gmail.com 6 min read

Your main electricity meter tells you one thing: how much you're spending. It doesn't tell you where that energy is going, when it's being wasted, or which systems are costing you the most. For UK manufacturers facing rising energy costs, this lack of visibility is expensive.

Sub-metering solves this problem by monitoring individual systems, production lines, or areas within your facility. The benefits of sub-metering in manufacturing go far beyond simple measurement - they transform how you manage energy, maintain equipment, and plan capital investments.

Here are seven ways sub-metering delivers value for manufacturing operations.

1. Identify Your Biggest Energy Consumers

Most facilities assume they know where their energy goes. The reality often surprises them.

Compressed air systems typically account for 20-30% of industrial electricity use, yet many manufacturers underestimate this because the compressors sit in a back room. HVAC systems might run at full capacity during non-production hours without anyone noticing. Auxiliary equipment - lighting, extraction, cooling - adds up to more than expected.

Sub-metering gives you actual data instead of assumptions. When you can see that your compressor room uses £4,200 per month while your main production line uses £3,800, priorities become clear. You focus your efficiency efforts where they'll have the greatest impact.

2. Detect Waste and Anomalies in Real Time

Energy waste rarely announces itself. Equipment runs inefficiently for months before anyone notices. A compressed air leak that costs £700 per year is silent. An HVAC system that fails to setback overnight doesn't trigger any alarms.

With sub-metering, these issues become visible immediately. You can set alerts for unusual consumption patterns - a motor drawing more current than normal, a system running outside scheduled hours, or base load creeping up over time. Problems get fixed before they become expensive.

One manufacturing client discovered their weekend base load was 40% higher than it should have been. Investigation revealed extraction fans running continuously due to a faulty timer. Annual saving from a simple repair: £8,400.

3. Prove ROI on Energy Efficiency Projects

Every energy manager has faced this challenge: you implement improvements, but when the electricity bill arrives, it's hard to prove what worked. Production volumes changed, weather affected HVAC load, tariffs shifted. The savings disappear into the noise.

Sub-metering provides before-and-after data at the system level, isolating the impact of specific interventions. When you install a VSD on a pump, you can measure exactly how much energy it saves - independent of everything else happening in the facility.

This matters for two reasons. First, it tells you which investments actually deliver returns, so you can make better decisions about future projects. Second, it gives you evidence to justify additional investment to finance directors or parent companies who want to see proven results.

4. Optimise Production Scheduling

Electricity costs vary significantly by time of day. Peak rates (typically 4-7pm weekdays) can be 2-3 times higher than overnight rates. Many manufacturers pay thousands per year in unnecessary peak charges simply because they don't know which processes are running when.

Sub-metering reveals exactly which systems drive your peak demand. You might find that running your heat treatment oven 30 minutes earlier avoids the peak window entirely. Or that staggering compressor start-ups reduces your maximum demand charge. These scheduling changes cost nothing to implement but deliver immediate savings.

One food processing client reduced their annual bill by £12,000 simply by shifting their cleaning cycle from 5pm to 8pm - same process, same result, lower rate.

5. Support Predictive Maintenance

Energy consumption patterns reveal equipment health. A motor drawing increasing current over time often indicates bearing wear, misalignment, or degraded insulation. Compressors running more frequently suggest leaks or filter blockages. Pumps consuming more power may have impeller damage or valve problems.

Sub-metering lets you spot these trends before they cause failures. Instead of running equipment until it breaks - with all the associated production losses and emergency repair costs - you schedule maintenance during planned downtime. You also avoid the energy waste of running degraded equipment, which can add 10-15% to consumption.

6. Allocate Costs Accurately

For multi-tenant facilities, different production lines, or cost centre accounting, energy allocation is often based on floor area or headcount. These proxies rarely reflect actual consumption and create arguments about fairness.

Sub-metering provides actual usage data for accurate cost allocation. Each department or tenant pays for what they use. This not only eliminates disputes but creates accountability - when a team sees their energy costs directly, they have incentive to reduce them.

For product costing, sub-metering lets you determine the true energy cost per unit produced. This can reveal that certain products or processes are less profitable than assumed once energy is properly attributed.

7. Meet Reporting and Compliance Requirements

UK manufacturers face increasing pressure to report energy consumption and carbon emissions. SECR (Streamlined Energy and Carbon Reporting), ESOS (Energy Savings Opportunity Scheme), and customer-driven sustainability requirements all demand accurate energy data.

Sub-metering makes compliance straightforward. Instead of estimates and spreadsheets, you have actual consumption data broken down by system, process, or area. Reports that used to take days can be generated in minutes.

More importantly, you can demonstrate year-on-year improvements - not just state your consumption, but show the specific actions you've taken and the measurable results they've delivered.

How to Get Started with Sub-Metering

The traditional barrier to sub-metering was installation cost and complexity - hard-wired current transformers requiring electricians and production shutdowns. Modern wireless systems using LoRa technology have changed this equation.

Wireless sub-meters can be installed without disrupting operations, communicate reliably through industrial environments, and feed data to cloud-based dashboards accessible from anywhere. Installation that once took days now takes hours.

The most effective approach starts with your electricity bills. Half-hourly consumption data reveals patterns that indicate which systems are worth monitoring. A free bill analysis identifies the opportunities; sub-metering then provides the detailed data to capture them.

What Results Can You Expect?

Manufacturers implementing comprehensive sub-metering typically achieve 15-30% reduction in energy costs within the first year. On a £150,000 annual electricity spend, that's £22,500-45,000 in savings. Payback on the monitoring system usually runs 6-12 months.

But the value extends beyond direct cost reduction. Better maintenance planning, accurate product costing, simpler compliance reporting, and data-driven capital investment decisions all contribute to operational efficiency that compounds over time.

See What Sub-Metering Could Save You

Use our Energy Savings Calculator to estimate potential savings for your facility, or send us your electricity bill for a free analysis showing where your opportunities lie.

The data your facility generates every day holds the key to significant cost savings. Sub-metering simply makes it visible.

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