Technical and Financial Viability Testing of Individual
Heating and Cooling Meters and Heat Cost Allocators
USER GUIDE
Issue: 5th July 2014
Version: 3a
Tool version: 4a
Created by: Elena Olloqui, Updated by Alex Duckworth 5th August 2014
Checked by: Andrew Cripps 6th August 2014
Validated by: Andrew Cripps 6th August 2014, minor amendments 20 October 2014
INTRODUCTION
This document provides user guidance to accompany the tool that provides the technical and financial
viability testing of individual Heat and Cooling meters and Heat Cost Allocators. This tool allows users to
evaluate the technical and financial viability of implementing heat or cooling meters and HCAs in existing
buildings which are fed by heating or cooling networks and community schemes. This tool is to be used
by any organisation responsible for delivering heating or cooling to dwellings or non-domestic units.
The tool is designed to evaluate the following configurations:
 One or more blocks of flats, all of identical topology1 and system configuration
 One or more detached dwellings, all of identical topology and system configuration
 One or more semi-detached dwellings, all of identical topology and system configuration
 One or more terraced blocks, all of identical topology and system configuration
 Non domestic buildings with tenants/units served by heat/cooling networks.
 Mixed use buildings where all flats and non domestic units are served by the same system
configuration.
This tool is not suitable for any other configuration and different blocks will need to be entered
separately if they do not have identical topologies and HVAC system configurations.
Data is input into the “User Interface” tab, and results are output in the “Results” tab. The “User
Interface” tab is split into sections:
 General Information
This section is where basic information concerning the building, its age, location, and occupants
is recorded.
 Technical viability
Basic information on system configuration is required to provide a quick evaluation of technical
viability. When the system is deemed to be not technically viable at this stage, the user is
informed and no additional information is required. For non domestic buildings, applicability and
technical viability of cooling meters is also assessed here.
 Domestic Details
If the block contains dwellings, information regarding the number and types of domestic unit is
entered here, as well as details which will affect the costs of any installation or technology used.
 Non-domestic Details
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Topology: type and system design of dwellings and non-domestic units
Technical and Financial Viability Testing of Individual Heating and Cooling Meters and Heat Cost Allocators
USER GUIDE
If the block contains non-domestic units/tenants, information regarding the number, area and
types of non-domestic units is required, as well as details which affect the costs of any
installation or technology used.
USER INTERFACE
The User Interface tab allows users to enter the data required to evaluate viability for the building(s)
assessed.
The tool highlights data which is required via a “MANDATORY FIELD” flag displayed in red to the right.
Other fields which are not needed for a given building are ‘greyed out’. Once all the required input fields
are completed, the results of the viability test are displayed in the “Results” tab. Please note that a final
evaluation is not produced until all required data are entered.
Some data is only to be provided by selecting from drop down options. To do this, click in the field/cell.
An arrow will then be shown. Clicking on this provides the user with the options available for selection.
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Technical and Financial Viability Testing of Individual Heating and Cooling Meters and Heat Cost Allocators
USER GUIDE
GENERAL INFORMATION
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Building(s) name/identification
Allows buildings to be entered with a unique ID for ease of identification and future
review.
In which region is the building located?
Select from available options. The location of the building affects the weather
correction of domestic and non-domestic space heating demand. Refer to following
map location boundaries.
Building age
Select from available options. The age of a building will affect the domestic heating
demand, due to the expected building fabric.
Building use
Select from available options. This determines the likely heating and cooling
demands, based on the differing uses of domestic, non-domestic and mixed*.
How many separate buildings are being evaluated?
Indicate the number of blocks or individual buildings being assessed. This could
help adjust costs if more than one block is being evaluated, but is not currently
used.
How many individual non domestic tenancy areas/unit are in the building(s)?
This could distribute or trigger costs depending on the number of tenancy
areas/units present, but is not currently used.
How many total individual dwellings are in ALL the buildings to be evaluated?
This could distribute or trigger costs depending on the number of dwellings present,
but is not currently used
Are Heat Cost Allocators (HCAs) already present?
Select Yes or No. Buildings with HCAs could still be evaluated for heat meters to
see whether these are viable, but this is not currently implemented as additional
savings could not justify the cost
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USER GUIDE
*Mixed buildings are a combination of domestic and non-domestic areas on the same network, details of
both can be input into the tool.
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Technical and Financial Viability Testing of Individual Heating and Cooling Meters and Heat Cost Allocators
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Source: SAP 2012 Manual
Technical Viability
This set of questions assesses whether any specific set up or configuration is not technically viable for
the installation of meters and HCAs. In this event, a message is shown informing the user that the
evaluation is completed and no additional data is required. The user should then check the outputs
provided in the RESULTS tab.
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How is the heating distributed to individual dwellings from the central heat source?
Select from available options. Users must identify whether this is done either via low
temperature hot water or other medium. Some distribution systems are technically
not feasible to meter, and others limit the technologies viable. Low temperature hot
water (LTHW) is defined as typically up to maximum of 90 degrees C.
How is the heating distributed to individual non domestic units/tenants from the central heat
source?
Select from available options. User must identify whether this is done either via low
temperature hot water or other medium. Some distribution systems are technically
not feasible to meter, and others limit the technologies viable. Low temperature hot
water (LTHW) is defined as typically up to maximum of 90 degrees C.
Are the non-domestic units served by a communal cooling system?
Select Yes or No. This determines whether a communal cooling system is present,
and triggers the viability of assessing cooling in addition to/instead of heating.
How is cooling distributed to individual non-domestic units from the central heat rejection plant?
If cooling is present, user must identify whether this is done either via chilled water
or other medium. Some distribution systems are technically not feasible to meter,
and others limit the technologies viable.
What is the type of chilled water flow and return entry to each non-domestic unit or separate
tenant area?
If cooling is supplied by a chilled water flow, the nature of the return and entry,
whether single or multiple points of entry, will inform whether metering is viable or
not. Select from available options.
How is fresh air supplied to the non-domestic units?
If non-domestic units are present, how fresh air is supplied will affect the feasibility
of metering. Users must identify whether fresh air supply to non domestic units is
provided via natural or local mechanical ventilation, central/communal mechanical
ventilation or centralised air conditioning. With centralised air-conditioning, metering
is not feasible. Please ensure there is no confusion with split units which only supply
cooling as these do not supply fresh air and are not applicable here. With
mechanical ventilation, it then depends on whether heating and or cooling is also
supplied. Select from available options.
Does the supply ventilation also provide heating to the non-domestic units or separate tenant
areas?
Select Yes or No. If the mechanical ventilation system provides heating, then heat
meters and HCAs are not feasible. If the supply ventilation also provides heating to
the non-domestic units or separate tenant areas, this affects the viability of
metering.
Does the supply ventilation also provide cooling to the non-domestic units or separate tenant
areas?
Select Yes or No. If cooling is present and the mechanical ventilation system
provides cooling, then meters are not feasible. If the supply ventilation provides
heating to the non-domestic units or separate tenant areas, this affects the viability
of metering.
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Technical and Financial Viability Testing of Individual Heating and Cooling Meters and Heat Cost Allocators
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DOMESTIC INFORMATION
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Domestic Details
 Dwelling Numbers: the number and type of dwellings present affects the likely heating
and cooling demands of the assessed block(s).
 Only dwellings in essentially identical blocks should be added:
o Detached houses only;
o Semi detached houses only
o Terraced houses plus 2 end terrace (entered as semidetached) only
o Flats
 If flats, how many storeys?
The number of storeys affects the costs of metering infrastructure. This data is only
required for blocks of flats. The number of storeys is the number of floors plus one
to account for the ground floor. For example a block with 5 floors plus a ground floor
will have 6 storeys.
 If known, what is the total metered heat in kWh supplied by the heat network?
If metered data for the building assessed is available for a typical year this can be
entered here to help with the evolution of benchmarks. It is not currently used in the
tool.
System Configuration
 What type of heat emitter is used?
Select from available options. The user should identify whether the heat is emitted
in the dwelling via radiators or something else. If radiators are not used (e.g. underfloor heating) then HCAs will not be viable.
 Average number of radiators per dwelling
The average number of radiators present will affect the costs of procuring and
installing HCAs. If not known and nothing is entered, a default value depending on
the type of dwelling is assumed in the tool.
 What is the type of heating flow and return entry to each dwelling?
Select from available options. The type of heating flow and return entry (single point
of entry, multiple points of entry, unknown), will affect the viability of technology.
 From what source is the domestic hot water provided for each dwelling?
Select from available options. The source of hot water helps determine the total
heat demand of the assessed block(s). Enter whether the source of hot water is
from the same heat network connection as the space heating system, from a
separate connection to the same heat network as the space heating system, from
local electric or gas heaters or from a central system separate from the heating
supply. This affects the heating demand used in the calculations. If the source is
from local electric or gas heaters then the heat demand used to obtain hot water is
excluded in the calculation of total heat demand.
 Are there any heating system time controls that the occupants can adjust?
Select Yes or No to identify whether a time controller is present or not in the
dwellings.
 Are there temperature controls on the heating system that the occupant can adjust other
than Thermostatic Radiator Valves (TRVs)?
Select Yes or No to identify whether a temperature control device controller is
present or not in the dwellings.
 Are there TRVs present?
Select Yes or No to identify whether there are TRVs present or not in the dwellings.
Installation Details
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Technical and Financial Viability Testing of Individual Heating and Cooling Meters and Heat Cost Allocators
USER GUIDE
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Would there be any issues with arranging access to the property and to the areas for
fitting the meters?
Select Yes or No. If Yes, additional cost is considered for installation. If Unknown,
the worst default cost is used by the tool.
Is there access to the pipework without the need to damage decoration or building
fabric?
Select Yes or No. If No, additional cost is considered for installation. If Unknown,
the worst default cost is used by the tool.
Are there isolation valves installed that will allow the dwelling to be isolated?
Select Yes or No. If No, additional cost is considered for installation. If Unknown,
the worst default cost is used by the tool.
Is there access to a straight 600mm length of pipe in order to fit a heat meter in
accordance with latest best practice guidance?
Select Yes or No. If No, additional cost is considered for installation. If Unknown,
the worst default cost is used by the tool.
NON DOMESTIC INFORMATION
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Non-domestic Details
 Activity Types: enter the number of units, and their total gross internal area (in m 2) into
the table. For example, if one of the separate tenant areas is an office, enter 1 for
General Office and next to it the gross internal area of the office on m 2.
If the activity type does not feature in the list, assign the activity to the category
which most closely describes its use, or will have most similar energy use.
 If known, what is the total metered heat in kWh supplied by the heat network?
If metered data for the building assessed is available for typical year this can be
entered here.
System configuration
 What type of heat emitter is used?
Select from available options. User should identify whether the heat is emitted in the
unit via radiators or something else. If not radiators then HCAs will not be viable.
 Average number of radiators for each non-domestic unit
The average number of radiators present would affect the costs of procuring and
installing HCAs.
 What is the type of heating flow and return entry to each non-domestic unit or tenant
area?
Select from available options. The type of hot water flow and return entry (single
point of entry, multiple points of entry, unknown), may affect the viability of
technology.
 Are main uses of domestic hot water in landlord space or within tenants’ spaces?
Select from available options. If hot water is mainly delivered in areas under
landlord’s control, then the heat demand associated with the provision of hot water
is not included in the heat demand used by the tool. The location of hot water use
affects how much heating demand can be attributed to individual tenants. When
main uses are within tenants’ areas then the following question is required for
further assessment of heat demands and potential additional costs of water meters
or additional heat meters for the water connection. For the purposes of this
assessment the “Tenant” means owner/operator of the non-domestic area entered
into the assessment under non-domestic details.
 From what source is the domestic hot water provided to each non-domestic unit?
This information is only required when the main uses of the domestic hot water are
within tenants’ areas. Select from available options. Enter whether the source of hot
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Technical and Financial Viability Testing of Individual Heating and Cooling Meters and Heat Cost Allocators
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water is from the same heat network connection as the space heating system, from
a separate connection to the same heat network as the space heating system, from
local electric or gas heaters or from a central system separate from the heating
supply. This affects the heating demand used in the calculations. If the source is
from local electric or gas heaters then the heat demand used to obtain hot water is
excluded in the calculation of total heat demand. For sources with separate
connections, additional heat meters or water meters may be required.
 Are there any heating system time controls that the occupants can adjust?
Select Yes or No to identify whether a time controller is present or not in the
dwellings.
 Are there temperature controls on the heating system that the occupant can adjust other
than Thermostatic Radiator Valves (TRVs)?
Select Yes or No to identify whether a temperature control device controller is
present or not in the dwellings.
 Are there TRVs present?
Select Yes or No to identify whether there are TRVs present or not in the units.
Installation Details
 Would there be any issues with arranging access to the property and to the areas for
fitting the meters?
Select Yes or No. This may affect the costs and viability of installing metering If Yes,
additional cost is considered for installation. If Unknown, the worst default cost is
used by the tool.
 Is there access to the pipework without the need to damage decoration or building
fabric?
Select Yes or No. If No, additional cost is considered for installation. If Unknown,
the worst default cost is used by the tool. This may affect the costs and viability of
installing metering
 Are there isolation valves installed that will allow the dwelling to be isolated?
Select Yes or No. If No, additional cost is considered for installation. If Unknown,
the worst default cost is used by the tool. This may affect the costs and viability of
installing metering
 Is there access to a straight 600mm length of pipe in order to fit a heat meter in
accordance with latest best practice guidance?
Select Yes or No. If No, additional cost is considered for installation. If Unknown,
the worst default cost is used by the tool. This may affect the costs and viability of
installing metering.
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Technical and Financial Viability Testing of Individual Heating and Cooling Meters and Heat Cost Allocators
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RESULTS
In the “Results” tab, the outputs of the viability evaluation are displayed. It is split into domestic, nondomestic, and mixed, and will give results for each.
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Technical and Financial Viability Testing of Individual Heating and Cooling Meters and Heat Cost Allocators
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If metering is deemed feasible, this means that, under standard circumstances and standard costs as
identified by the user, heat meters could be technically and financially viable to install.
If metering is not viable, but heat cost allocators are deemed to be, under standard circumstances and
standard costs as identified by the user, HCAs could be technically and financially viable to install.
If neither metering nor heat cost allocators are viable, no action needs to be taken at this time. The key
energy and costs used in the financial viability test are displayed where analysis has been completed.
This can be used to understand the potential financial implication of installing heat meters or HCAs. A
negative Net Present Value means heat meters or HCAs are not financially viable.
The tab also displays important warnings or assumptions that the calculation has made, based on the
quality of data input, or on the specific data added.
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If the building(s) is deemed viable for meters or HCAs, if there is a planned refurbishment or
demolition, this may affect the financial viability of installing meters or heat cost allocators.
Consultation with the NMO is necessary for further advice on how the scheme should proceed
whilst complying with the regulations.
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If the building(s) is deemed viable for meters and already has HCAs, consultation with the NMO
is necessary to ascertain how to proceed.
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Other unavoidable costs such as potential legal costs which may be incurred due to
requirements for changes in lease and contractual agreements with tenants cannot be modelled
using this viability tool as they will be specific to each organisation. If you believe that
implementation of metering or HCAs will incur additional legal costs, you need to consult the
NMO for further advice.
Mixed buildings can return domestic or non-domestic areas as not financially viable but combined are
viable. If the result for mixed buildings is viable for heat meters or HCAs then they should be used
throughout the building in both domestic and non-domestic units.
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