Splitwatt

Per-room power sub-meters and plain bills for small PGs and hostels

IoT SMEs

TL;DR Splitwatt fits a small radio sub-meter to each room in a paying-guest house or hostel and bills residents for what they use, at the rate the owner pays the discom. Owners pay a monthly fee per room. It works if fair, readable bills end the monthly argument over the shared meter.

The problem

In a PG, ten or forty rooms often share one discom meter. Owners recover the bill as a flat charge, by a split nobody can check, or by reading cheap sub-meters by hand. The residents with an AC get subsidised by the ones without, and the owner spends half the month chasing arrears.

Residents usually can't fix this by getting their own meter. In Delhi, one discom gives a separate prepaid tenant connection only to a "separate dwelling unit", which it defines as a room with a kitchen and its own entry, and it allows one meter per dwelling unit[1].

A PG room rarely qualifies. So the owner's own sub-meter is the only real route to billing each room for what it uses.

The idea

What it does, in regulatory terms: a billing sub-meter behind the owner's discom meter, used to share the owner's actual bill. Splitwatt does not sell or supply electricity. We found no PG-specific rule on whether owners may add a margin, so Splitwatt bills at the discom's slab rate and the owner should get a state-specific legal view.

An electrician fits a din-rail meter for each room's circuit at the distribution board, plus one on common loads like the kitchen, corridor lights and water pump. Meters report by radio to a small gateway. Each month the app splits the discom bill, so every room pays its own units at the effective rate and common loads are shared per bed. Residents see daily use on a chat app, and owners can switch to prepaid with a low-balance warning.

The seed pitched AI-powered sub-metering. We dropped the AI, because the problem was never prediction. What owners need is a bill both sides trust, at a price a 20-bed PG can afford.

Who pays

The owner pays a monthly fee per room plus a one-time fitting charge. Our working price is ₹100–200 per room a month, untested. Residents pay their share of the electricity, not the fee. PG management apps are a good channel - one already adds monthly bills to rent for owners with 3 lakh+ rooms[2].

Why now

Prepaid billing is normal for residents now, and one vendor reports 92% of residents in a 420-room Bengaluru property recharging digitally[3]. Delhi's discom itself offers prepaid tenant meters with low-balance alarms and emergency credit[1], so residents already get the model. Cheap radio meters make room-level metering doable for small buildings.

Market signal

We found no public figure for PG or hostel beds in India. The adjacent number - one PG-software firm alone reports 3 lakh+ rooms and 2.3 lakh+ tenants on its software[2].

A vendor case study claims a 60-room Pune co-living property went from 86% to 100% power-bill recovery after prepaid metering[4]. That's the vendor's own claim though, not independent data.

Who's already doing this

One Indian sub-metering company sells prepaid sub-metering, recharge and resident apps to PGs, hostels and societies, with case studies at 60 and 420 rooms[3][4]. It is the main competitor, and a real one. PG software runs PG operations but shows no metering[2]. Discom tenant meters exist only for dwelling units[1].

The opening is the long tail of 10–40 bed PGs, bought through the apps they already use.

How hard is it?

Difficulty Moderate (43/100)
Starting capital ₹50–100 L
Time to launch 5–8 months

The hardware is commodity stuff, but old PG wiring often mixes rooms on one circuit and some buildings need rewiring before metering works at all. Small owners are price-sensitive and scattered, so installs and sales move slowly per room. And you're up against an established vendor.

Licences and approvals

Splitwatt doesn't sell electricity, so it needs no supply licence, but billing occupants for power has state-level rules.

  • Discom connection rules set by your city's distribution company decide when a room can get its own connection. Delhi's rules are a useful reference[1]. Check before you pitch.
  • Recovering electricity costs from occupants has no PG-specific rule we could find. Bill at the discom's effective rate and get a state legal view before charging any margin [Requires validation].
  • WPC equipment type approval from the Department of Telecommunications for each radio meter and gateway model, before selling[5].
  • BIS standard and accuracy class for sub-meters [Requires validation].
  • DPDP Act for per-room usage data, from launch.

Building this outside India? The categories above usually have a local equivalent, so check with your own regulator.

How AI can power this business

  • Bill dispute answers. A chat assistant explains a resident's bill line by line from their own meter data, so the owner fields fewer arguments at month-end.
  • Odd-usage flags. Spot a room drawing power while empty, or a common-area pump running all night, and tell the owner.
  • Collection nudges. Time prepaid low-balance warnings and reminders around each resident's past payment pattern.
  • Owner onboarding. Read a photo of the discom bill to fill in tariff slabs, instead of typing them in.

AI is not the product here, and the page says so. Never let a model estimate or alter a bill. Every rupee charged must come from the meter reading and the discom tariff.

Want to work out the AI layer for Splitwatt? Talk to Yash →

Biggest risks

Here's what can go south -

  • Direct competition. The incumbent sub-metering company already sells the core product and may move down-market faster than you.
  • Legal grey zone. Billing rules for owners recovering electricity from occupants are unclear in most states.
  • Messy wiring. Shared circuits push install costs past what a small owner will pay.

Our take

I'd only build this with a distribution edge, like a partnership with a PG management app or a large PG broker. Without one you're a smaller copy of the incumbent, and I don't like those odds one bit. Prove first that a 20-bed owner pays the fitting charge and that complaints about power bills drop within two months.

Questions founders ask

Plan for roughly ₹50–100 L, mostly on meters, gateways, fitting crews and early sales.

Do I need a licence to start a sub-metering business in India?

You don't sell power, so there is no supply licence. You do need WPC approval for radio meters, a check of your discom's rules and a state legal view before charging residents any margin.

Can I start a sub-metering business for shared housing in another country?

Yes, but rules on reselling or recharging electricity differ widely. Check your energy regulator before billing anyone.

Download the kit

The free Splitwatt validation kit has the line-by-line capital breakdown, the effort scoring, the metering and radio checklist, a 14-day validation sprint with pass/fail targets, a 90-day launch plan, 10 interview questions for PG owners and residents, and 5 assumptions to test. Download the kit →

Talk to Yash

Thinking about building Splitwatt or something close to it? The make-or-break work is finding a channel that reaches thousands of small PG owners at low cost. If you need a hand with that, you know where to find me. Talk to Yash →

Sources

  1. Tata Power-DDL, "FAQs - Prepaid Tenant Connection", accessed 2026-10-21. https://tatapower-ddl.com/Editor_UploadedDocuments/Content/Prepaid_Tenant_FAQs.pdf
  2. RentOk, official site, accessed 2026-10-21. https://rentok.com/
  3. Qube, "The Future of Energy Management: How Prepaid Meters Are Revolutionizing Co-Living Spaces", 2025-07-21. https://qube.eco/blog/future-energy-management-prepaid-meters-co-living-spaces
  4. Qube, "How to Reduce Late or Missing Tenant Payments for Electricity", 2025-01-13. https://qube.eco/blog/reduce-late-missing-tenant-payments-electricity
  5. Bureau Veritas CPS, "India WPC ETA through self-declaration", 2019-04-12. https://www.cps.bureauveritas.com/newsroom/india-wpc-wing-introduce-equipment-type-approval-eta-through-self-declaration-saral

For illustration only. Names are fictional and ideas hypothetical; sourced facts are real but may be out of date. Nothing here is legal, financial or professional advice, and Yash Khatri is not personally liable for any use of it. Read the full disclaimer.

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