Why 90% of Commercial Buildings Are Abandoning Area-Based HVAC Billing

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For decades, commercial leases billed central HVAC costs based on leased area. While it seemed fair on paper, this “flat-share” model is collapsing in 2026. Modern property managers are switching to usage-based billing, because average allocation no longer aligns with ESG targets and financial fairness.

The Collapse of “Energy Fairness”

● Flat-rate billing creates a “free-rider” problem: a 24/7 server room pays the same as a retail shop closing at 6 PM.

● Conflict: Low-use tenants feel unfairly charged; high-use tenants lack incentive to save energy.

● Solution: SAS920XFCT LoRaWAN thermostats record precise runtime per tenant, converting estimates into auditable facts.

Accurate Runtime Metering: The “Digital Scale” of Energy

● Challenge: measuring HVAC energy use without installing expensive heat/cooling meters in each room.

● Breakthrough: runtime accumulation algorithm tracks FCU activation status.

● Result: highly accurate energy reference, creating transparent billing tenants can trust.

Retrofit Made Easy

● Traditional sub-metering required miles of communication cabling.

● LoRaWAN advantage: Zero rewiring.

● Each room can be upgraded in under 15 minutes, floor by floor in a 30-story building.

● No dust, no drilling, minimal tenant disruption.

ROI and Asset Value Impact

● Transparent billing changes tenant behavior: lights and AC are used only when necessary.

● Buildings with smart, fair billing systems gain higher ESG scores and attract premium tenants.

Conclusion: A New Industry Standard

Switching from area-based to usage-based HVAC billing is not just technology, but trust. LoRaWAN metering allows property managers to audit the largest common expense—HVAC energy—while enabling a fairer, more profitable future.

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