Complying with NY Local Law 88 and the Benefits of Submetering

What is LL88?

By January 1, 2025, all commercial buildings in NYC over 25,000 sq. ft. must install submeters for tenants occupying 5,000 sq. ft. or more. Noncompliance risks significant penalties.

Why is this happening?

LL88 is part of NYC’s Greener, Greater Buildings Plan to cut energy use and boost efficiency. Submetering promotes conservation by letting tenants track their energy use, leading to an average 20% drop in consumption and increased property value.

Fines and Fees

Fines start at $1,500–$3,000, plus $500 per tenant, levied annually. Noncompliance may also affect future permit approvals.

How Does Submetering Work?

A main utility meter remains, but submeters track each tenant’s actual energy use, ensuring they’re billed by usage rather than flat rates.

Benefits for Tenants

  • Pay only for what they use, often at lower bulk utility rates.

  • Incentivized to conserve energy, supporting ESG goals and cutting emissions.

  • Gain visibility into energy consumption for smarter management.

Benefits for Property Owners

  • Ensure LL88 compliance and avoid fines.

  • Track energy usage and detect issues like faulty equipment.

  • Fairly allocate energy costs.

  • Cut maintenance and operating expenses, raising property value.

  • Attract tenants who value energy transparency.

  • Qualify for revenue-boosting programs like Grid Power Direct.

The Bottom Line

Submetering shifts energy responsibility to tenants, boosting efficiency and cutting consumption. Savings from five submetered buildings can power a sixth—benefiting both owners and tenants.

Easy Implementation

Modern submetering systems are compact, affordable, and easy to install, often requiring no rewiring. These IP-based systems connect with building automation to provide real-time energy data, turning properties into “Intelligent Buildings.”

[1] www.nyc.gov, LL88: Lighting Upgrades & Submetering

[2] Making the Case for Energy Metering: ASHRAE Journal, April 2011, and Guidance for Electric Metering in Federal Buildings: US Department of Energy, February, 2006

To find out more about how to get your buildings into compliance with Local Law 88, how to install sub-meters, and how to maximize the benefits from it, please contact us at info@gridpowerdirect.com.

Jack Doueck is the cofounder and principal of Grid Power Direct.