CH-89-10-1 -- Heating Cost Allocation in Multi-Family Buildings: Energy Savings and Implementation Standards PDF

Heating cost allocation (HCA) systems are combinations of monitoring devices and accounting procedures designed to allow the energy costs in centrally heated multifamily buildings to be divided among the individual apartments on the basis of use. Analysis of nine Minnesota buildings in which HCA was implemented showed average savings of 16% of total gas use and simple paybacks of 1.4 years. Owners reported acceptable tenant reactions and no long,term increase in turnover or vacancy. Allocation motivates tenants to use energy efficiently, helps to contain building owners’ costs, and provides an alternative to conversion to individual heating systems. Implementation standards are needed to ensure that building efficiency is maintained and costs are allocated fairly. U.S. and European experience shows that these standards must address: building energy codes, equipment and installation, allocation of non-metered uses, disclosure and tenanteducation, and metereading and billing.