RUBS, Submetering, and Energy Conservation Economics

The split incentive problem arises when property owners pay utilities while tenants control consumption. Research compares capital-intensive submetering with algorithmic RUBS allocations.

Comparative Analysis

• Direct submetering reduces overall building energy consumption by 15% to 25%, but requires $1,500+ per-unit retrofit CapEx.
• RUBS achieves near-100% utility cost recovery for landlords with zero capital investment, immediately boosting Net Operating Income.
• Pairing RUBS with transparent ledger statements ensures legal compliance with municipal utility recovery statutes.