Buying guide

How to choose an energy monitoring system for a factory. Twelve checks before you sign.

Most energy monitoring systems look alike in a demo: live graphs, a dashboard, an app. The differences show up later, in your meters, your bill, your Internet and your data. This guide lists what to check, what to ask each vendor and the warning signs. It has no prices, because every plant’s quote is different.

By Madhusudan Rathi, founder · Updated 8 November 2026 · 11 min read

Start with your bill, not the dashboard

Buy for the money you want to stop losing. Read your last 12 bills first and mark the lines that hurt. Each one needs something different from the system.

On your billWhat the system must do
Maximum Demand penalty or excess demandShow the running 15- or 30-minute interval against Contract Demand, and warn before it closes. See MD penalty.
Billing floor on unused Contract DemandKeep a year of monthly peaks, so Contract Demand can be sized on evidence. See Contract Demand.
Power factor surcharge, or extra kVAh unitsShow power factor live on the incomer and each panel, in the terms your bill uses. See power factor penalty.
Peak-hour (TOD) surchargeSplit every unit into your TOD zones, and show which load runs in the peak window. See TOD tariff.
High energy chargesShow the load at night, between shifts and on holidays, panel by panel.
Cost per unit made risingTrack kWh per tonne, piece or batch against production. See specific energy consumption.

If a vendor cannot show how the system handles your top line, the rest of the demo does not matter. The free bill check shows which of these lines is on your bill.

In one line

The right system is the one that catches the charges on your bill, using your meters, inside your plant.

1. Does it work with the meters you already have?

Most factory panels already have multifunction meters. If they have an RS-485 port, they speak Modbus RTU and can usually be read as they are. Replacing working meters adds cost and shutdown time for no gain.

  • Ask which meter brands and models it reads, and whether different brands, and single- and three-phase meters, can share one network.
  • Each make and model stores its readings differently, in its own register map. Ask whether the vendor maps your models before installation, or finds out on site.
  • Ask what happens on a feeder with no meter, or a meter with no RS-485 port. It needs a new meter, and that should be in the quote.
  • Check the CT ratio set in each existing meter. A wrong ratio gives wrong figures on any system.

For how meters are read and what goes wrong, see multifunction meter monitoring software.

2. Does it measure what your bill charges?

  • Maximum Demand in kVA where your bill is in kVA, not only kW.
  • kVAh as well as kWh, if your state bills in kVAh. See kVAh billing.
  • 15- or 30-minute intervals, matching your DISCOM meter. Hourly data can hide the spike that set the bill.
  • Your TOD zones and your power factor rule, set from your own tariff order.

Test it after the first full billing month. Compare the system’s estimate with the DISCOM bill, line by line. Small gaps are normal, because panel meters and CTs are not the DISCOM meter. A large gap means a setting is wrong, and the figures you act on will be wrong too.

3. Where does the data live?

Some systems send every reading to the vendor’s servers. Others keep it in the plant. Neither is wrong, but you should know which one you are buying.

  • Who owns the history, and can you take all of it out, at full detail, in Excel or CSV?
  • What happens to the history if you stop paying, or the vendor closes?
  • Does production data, such as shift patterns and running hours, leave the plant? Some owners do not want that.

For the full comparison, see cloud vs on-premises energy monitoring.

4. What happens when the Internet goes down?

Factory Internet drops. A cloud system may hold readings on the gateway for a while, but alerts and the dashboard usually need the servers. An on-premises system keeps reading, recording and alerting on site.

  • Does it raise alerts on site with no Internet?
  • How long can the gateway hold readings if the link is down, and are they uploaded later?
  • Does the dashboard open on the plant network without the Internet?

5. What happens after a power cut?

  • Does the gateway keep the right time through a power cut, or restart with a wrong clock?
  • Does logging restart on its own when power returns, with no one on site?
  • Is the energy used during the gap filled in, so monthly totals still match the meter?
  • If you run a DG, can it tell grid hours from DG hours? See solar, DG and grid monitoring.

6. Does it warn before the penalty, or report it after?

A monthly report tells you about a penalty you have already paid. The value is in a warning that comes while there is still time to act.

  • The live Maximum Demand interval against Contract Demand, with a warning as it climbs.
  • Power factor alerts before the month’s average falls under the limit.
  • Alerts on a phone, to a named person, at a limit you set. An alert sent to everyone is acted on by no one.

7. Can it act, or only watch?

Monitoring tells you a peak is coming. Someone still has to switch a load off in time, every time. Ask whether the system can hold back chosen loads on its own as demand nears the limit, move load out of peak hours, or switch off idle machines. This is usually done through I/O cards in the panel, engineered for the plant.

Ask how control would be added later, too. A system that only watches today should not need replacing when you want it to act. See MD controller vs energy monitoring.

8. Will it grow with the plant?

  • How many meters each gateway reads, and what it takes to add more panels.
  • Whether new panels join the same dashboard and the same panel tree, so the totals still add up.
  • Whether a second plant can join one dashboard, with one combined report.
  • Whether solar, DG, sensors or machine signals can join later. See machine monitoring system.

9. Who can see what?

  • Separate logins for owners, plant staff and viewers, with different rights.
  • Remote access that does not need ports opened on your router.
  • Who can change limits and settings.
  • Who at the vendor can see your data, and when.

10. Reports your team will read

  • Figures in rupees, on your tariff, not only kW and kWh.
  • Shift-wise and day-wise comparison, and a before-and-after view to prove a saving.
  • Energy per unit made, once production figures are entered.
  • Records for an energy audit or ISO 50001: baselines, EnPIs and exports. See energy audit.

11. Support, updates and what happens if you stop paying

  • What the subscription covers: software updates, security fixes and support.
  • What happens if it lapses: does monitoring pause, and is the history kept or deleted?
  • The warranty on the hardware, and how a failed unit is replaced.
  • Whether the vendor’s team knows Indian bills: Contract Demand, Maximum Demand, kVAh, TOD and power factor rules.

12. What decides the cost

Every plant’s quote is different, so this guide gives no prices. These are the things that move it:

  • How many panels already have meters with an RS-485 port, and how many need new meters and CTs.
  • The cable runs between panels, and how many gateways the meter count needs.
  • Whether automatic control is part of the project.
  • Whether software and support come as a subscription, a one-time licence or both.

Compare quotes on the same scope. Then weigh each one against the leak on your bill: one Maximum Demand penalty or one month of power factor surcharge avoided is money you can read off your own bill.

The kinds of system you will be offered

OptionStrong atWatch out for
MD controllerSwitching loads to keep demand under a limitControls demand only: no panel-wise energy, bill or idle view
Cloud energy monitoringA quick start, and access from anywhere through the vendorData and alerts depend on the Internet and the vendor’s servers
On-premises energy monitoringData stays in the plant, and it runs without the InternetRemote access must be set up securely
SCADA or PLC systemRunning and controlling the processEnergy and bill figures are usually an add-on

For how these fit together, see EMS vs SCADA vs BMS.

Questions to ask every vendor

  1. Which of my meter models do you read today, and who maps the registers?
  2. Show me Maximum Demand in kVA, in 15- or 30-minute intervals, the way my DISCOM works it out.
  3. Where is my history stored, and how do I export all of it?
  4. What happens with no Internet for three days?
  5. What happens after a power cut at 2 a.m. on a Sunday?
  6. How do I get a warning before Maximum Demand crosses Contract Demand?
  7. Can it switch loads on its own, and how is that added?
  8. What does the subscription cover, and what happens if it lapses?
  9. Who can see my data, in your company and in mine?
  10. Can I see it running on meters like mine?

Red flags

  • A demo on sample data only, with no plan for your meters.
  • Maximum Demand shown in kW, or by the hour, when your bill is in kVA on 15- or 30-minute intervals.
  • No export, or an export of summaries only.
  • A fixed savings percentage promised before anyone has read your bill.
  • No clear answer on what happens to your data when the contract ends.
  • Every alert going to everyone, with no limits you can set.

Run a one-month pilot first

  1. Start with the incomer. One meter shows Maximum Demand, power factor and the bill from day one.
  2. Add the two or three panels you suspect most, such as compressors or a furnace line.
  3. Run a full billing month, then compare the system’s estimate with the DISCOM bill.
  4. Test one alert end to end. Did the right person get it in time to act?
  5. Decide on evidence: what the pilot found, and what it is worth on your bill.

How KONDUKTOR® EMS answers these checks

  • Meters: any brand of multifunction meter with an RS-485 Modbus RTU port, single- or three-phase, up to 10 meters per gateway. Your make and model are mapped before installation.
  • Your bill’s terms: the running Maximum Demand interval against Contract Demand, power factor, the TOD split and an estimated bill on your tariff.
  • Data: history stays on the gateway in your plant, with an encrypted backup on a plant computer. Nothing is sent to KONDUKTOR or to any cloud. Excel and CSV export.
  • Without the Internet: it keeps reading, recording and alerting on site.
  • Power cuts: a battery-backed clock keeps the time, logging restarts on its own, and the gap is filled with estimated energy, so totals still match the meter.
  • Access: Admin, Operator and Viewer logins. Remote access over an encrypted link, with no router ports opened and only approved devices allowed.
  • Growth: more gateways for more panels, and more plants in one dashboard with one combined report.
  • Control: through Modbus I/O cards, engineered for your plant as part of your project: Maximum Demand limits, TOD load shifting and idle machine switch-off.
  • Support: the subscription covers updates, security fixes and support. If it lapses, monitoring pauses and your history is kept. The gateway carries a 1-year warranty against manufacturing defects.

See which meters connect, or start with the free bill check.

Common questions

Which energy monitoring system is best for a factory?+

The one that reads the meters you already have, measures what your bill charges in the same intervals, warns before a penalty, and keeps working when the Internet is down. Those four checks on your own plant matter more than a brand name.

What should I look for in an industrial energy monitoring system?+

Meter compatibility, Maximum Demand in your billing terms, alerts before a penalty, where the data is stored, what happens with no Internet or after a power cut, control options, logins, full export, and what the subscription covers.

Do I need to replace my existing meters?+

Usually not. Multifunction meters with an RS-485 Modbus port can be read as they are. Feeders with no meter, or meters with no RS-485 port, need new ones.

Is cloud or on-premises better for a factory?+

Cloud is quick to start and easy to reach from anywhere. On-premises keeps the data in the plant and keeps working with no Internet. Where the Internet drops or owners want the data inside, on-premises fits better. See cloud vs on-premises.

What is EnPI in ISO 50001?+

An Energy Performance Indicator: a figure that shows how well energy is used, such as kWh per tonne or kWh per piece. ISO 50001 asks you to set a baseline for each EnPI and track it after every change. Panel-wise data with production figures gives you both.

Which energy meter is best for monitoring?+

For a panel, a multifunction meter of accuracy class 1.0 or better, with an RS-485 Modbus RTU port, kVAh as well as kWh, and the right CT ratio set. Those points matter more than the brand, and different brands can share one network.

What decides the cost of an energy monitoring system?+

How many panels already have meters with an RS-485 port, the cable runs, the number of gateways, whether control is included, and the support terms. Ask each vendor to quote the same scope, and weigh it against what your bill loses each month.

Bring your bill, and test us on this list.

Book a live demo and check KONDUKTOR® EMS against every point here, on meters like yours.