Embedded
Networks

What is an

embedded network?

An embedded network is an electrical system that serves an entire building, rather than individual occupants with their own suppliers and contracts. They include a parent connection to the local grind through a main meter, and sub-meters for tenant spaces. The property management company bills tenants internally, and in turn they are billed by the local energy retailer based on total consumption. By comparison, under the traditional approach each tenant has a dedicated meter and separate account, paying the energy retailer directly. Embedded networks utilise traditional building infrastructure to bring energy services to end users while simultaneously creating ongoing income streams that benefit both building owners, managers, residents and tenants. As a result, embedded networks are a great option for owners of multi-tenanted complexes in which tenants and energy users have varying consumption patterns, such as apartment buildings, shopping centres, retirement villages, commercial towers and business parks. An embedded network simplifies this by using a power distribution system with a parent connection to the electricity network and a main meter combined with private sub-meters for internal recording and billing.

Property Management Companies

benefits

Increased Rental Income

Embedded networks provide an additional source of income for developers; helping their tenants reduce their electricity bills and keeping a portion of the savings in return. This has revenue potential and also makes your property much more attractive to tenants. When combined with a commercial solar power provider in a Power Purchase Agreement, the same logic applies: the property management company gets a lower kWh price, and passes on a portion of the savings as a discount. The PPA business model can be especially attractive for property developers, since they avoid two of the main challenges that come with commercial solar power: the upfront cost of the installation, and training the required staff to provide maintenance. Solar PPAs provide a risk-free approach where the burden of financing, maintenance and component replacements is delegate to the supplier.

Convenience

Embedded networks enable all energy metering and tenant billings to be automated. Tenants also benefit by being able to simply enter the network provided by their landlord instead of researching and negotiating their own contracts.

Flexibility 

An embedded network provides more flexibility because it is managed internally. If a large company requires many tenant spaces, the measurements from the respective power meters can simply be added. On the other hand, if there are plans to split a large space to accommodate many smaller tenants, the property management company can simply add new electricity meters.

Tenant

benefits

Lower Electricity Rates

The key benefit of an embedded network is reduced costs through aggregated buying power resulting in bulk discounts and simpler allocation of shared charges. Property management companies can get a kWh price discount based on bulk purchasing. Tenants pay less for each kWh, even if the developer adds a margin to the discounted price. A large solar array can be deployed and connected behind the main meter, reducing the net energy consumption measured by the energy retailer. Savings can be split among tenants by reducing the internal kWh price.

A facility that uses an embedded network with a commercial solar power system is much more attractive for tenants since they pay less for each kWh. Considering that Australia has some of the highest electricity prices in the world, this is a huge benefit.

 

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