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Energy Monitoring 101: Where to Measure and Why

Strategic placement of energy meters is crucial for actionable insights. Learn the principles of multi-tier metering and how to design an effective energy monitoring system.

8 min readPublished on Jan 4, 2026

Introduction

You cannot manage what you do not measure. This guide helps you design an energy monitoring system that provides actionable insights without excessive cost.

The Multi-Tier Metering Pyramid

Tier 1: Main Incomer (Essential)

Purpose: Verify utility billing, track total facility consumption

Purpose: Understand consumption by department, building, or process

Tier 3: Sub-Feeder / Equipment Level (Optional)

Purpose: Detailed visibility into specific equipment or sub-processes

Strategic Meter Placement

If budget is limited, prioritize main incomer, largest energy consumers, high-variability loads, and areas with suspected waste.

Current Transformer (CT) Sizing

Choose CT ratio so normal operating current is 50-80% of CT primary rating for optimal accuracy.

Communication Protocols

Common protocols include Modbus RTU (RS-485), Modbus TCP (Ethernet), and Wireless (Wi-Fi, LoRaWAN).

Getting Started

  1. Energy Audit
  2. Prioritize metering points
  3. Design system
  4. Implement in phases
  5. Act on data

Conclusion

Start with the basics and commit to regular reviews and actions based on the data.

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