Cost Allocation
Cost allocation is the process of attributing energy costs to specific departments, tenants, or business units based on their actual or estimated consumption.
Definition
Cost allocation distributes total energy costs across departments, tenants, or business units, typically based on submetered consumption data, floor area, or another agreed allocation methodology. Accurate cost allocation depends heavily on granular metering — without submeters, allocation often relies on estimates.
Why It Matters
Fair, accurate cost allocation is important for multi-tenant buildings and internal departmental accountability, and disputes often arise when allocation is based on estimates rather than actual submetered data.
How ecolyptus Helps
ecolyptus supports cost allocation based on submeter-level consumption data where available, reducing reliance on estimated splits.