In this insight, we show how we approach tenant billing — and how digitalization can support building operators and landlords in gaining end-to-end visibility, meeting regulatory requirements, and improving system-wide efficiency through collaboration with tenants.

 

The Shared Energy Challenge - Understanding the current model of utility cost distribution in multi-tenant buildings

In today’s buildings and data-driven environments, energy and cooling costs are significant operational expenses. Multiple tenants often share centralized systems like HVAC, chilled water, or even server cooling. Traditionally, these utility costs are borne by the landlord or divided based on floor area or fixed percentages, regardless of actual usage.

This model worked in the past — but no longer meets the needs of modern tenants or building operators seeking transparency, efficiency, and sustainability.

 

When Fairness Fails - Why traditional billing methods fall short in today’s data-driven, sustainability-focused landscape

This outdated approach leads to several problems:
 

• Inequity: Tenants with low usage subsidize high-usage neighbors
• Lack of Insight: Tenants can’t track or control their consumption
• Sustainability Blind Spots: ESG targets are harder to meet without granular data
• Disputes and Inefficiencies: Inaccurate billing creates confusion and operational strain

As energy prices rise and regulations tighten, both landlords and tenants are feeling the pressure for better accountability and smarter resource management.

 

A Smarter Way Forward - How digital backcharging brings accuracy, transparency, and sustainability to energy and cooling costs

Digital tenant backcharging offers a modern, data-driven alternative. Using smart meters, IoT sensors, and integrated platforms, landlords can:
 

• Monitor actual consumption in real time
• Allocate energy and cooling costs accurately per tenant
• Automate billing and provide transparent usage reports
• Enable tenants to optimize their energy behavior and lower costs

This system not only improves billing fairness, but also supports sustainability initiatives, net-zero goals, and tenant satisfaction.