In a recent meeting where we had just presented the ICON connected HIU features and benefits, we were asked the following question: ‘What impact do these additional IoT benefits have on the capital cost of the HIU and what is the expected payback?

At the time my immediate thought and response was that you’re not comparing apples and apples when you talk about connected units and budget dumb units. From the development stages, we knew we had to be price sensitive to avoid ruling ourselves out of tender processes, but we also knew we needed to include the benefits of 5G IOT AWS technology.

However, on reflection it sparked a wider debate with the colleague that was also on the call, and then further internally throughout the business. If we were to answer this question again, we’d reply that through the nearly 2,000 units we’ve now installed at sites across the country, we have already seen significant improvements in performance – some that we hadn’t anticipated when development began. These improvements are driven by the connectivity and next generation capabilities of the ICON unit, and because of the price sensitivity built in from development, you’re getting an award-winning deal when it comes to ICON. 

A heat network’s perfect storm 

As part of our work with the HNES funding, we conducted in-depth analysis of existing network performance, with specific interest in energy to flow ratios from residential heat metering data. We identified that poorly performing HIUs accounted for more than 87% of system flow.   

This may not have been an issue when the system was first commissioned, but over time, various services, and repairs, the systems had repeatedly fallen below optimum performance, and the lack of performance data and analytics had meant that the cause had been impossible to identify. Unfortunately, issues like this result in higher pumping costs, higher return temperatures, higher pipework heat loss, and ultimately drastic reductions in efficiency from heat generation equipment. Access represents a further issue, as being unable to gain access and investigate the reason for poor return temperatures, which could be related to issues such as poor space heating balancing, a flushing bypass left open or a fault within a HIU. 

Data drives performance 

On sites that had the connected ICON HIU installed, we found that any of the above issues, were quickly and easily identified, and rectified. Either remotely via the site management portal, or by a standard maintenance visit which could be targeted down to individual residence due to the data supplied by ICON. The fact that ICON continuously supplies this data to any web-based device with access to the portal, means that maintenance can be attempted remotely, and if that’s not possible has become targeted and proactive, resulting in significant reductions in out of hours and emergency call outs, dropping operating expenditures (OPEX), even further when compared to budget or unconnected units. 

Is the connected ICON HIU cheaper to install? 

While these OPEX benefits are great examples of the benefits ICON was developed to provide, we wanted to know whether a mid-priced connected HIU is more expensive to install, verify and commission than a budget or unconnected electronic HIU, what we discovered was fascinating. 

In terms of price to complete installation, verification, and commissioning of the unit’s there’s only a small increase in on-site material and labour associated with budget HIUs. The major differentiation between the connected unit and unconnected units, is capability of a connected unit to be delivered to site with pre-configured pipework and settings.  

The pre-configuration of the unit, enables site-wide conformity, removing the need for onsite skill required to setup. The pre-loading of settings to the units means that out-of-the-box, ICON is in a condition that allows for significant reductions in wasted time adjusting the unit to meet site performance needs, is automatically registered with the manufacturer providing enhanced warranty support to be achieved. 

What is the expected payback on an ICON unit? 

We believe that the price difference between a Budget HIU and the ICON connected HIU is as little as £50/property. However, you won’t get any of the added connectivity benefits, meaning in the long run, you’ll end up in a state like the networks studied in our HNES research, and these networks all require significant capital funding to get them back to optimal efficiency. Against a mid-price point electronic HIU you could already be saving up to £150/property on your CAPEX, again this is before any consideration is made around being able to monitor and maintain network efficiency throughout the life of the network.  The payback on next generation units, such as ICON, versus units that don’t provide this level of information, won’t just be pounds and pence, it’ll be in meeting decarbonisation targets, resident experience, and brand reputation. 

If you found this interesting, then take a look at ICON, our next generation HIU. ICON combines the reliability of time tested HIU design, with connected Internet of Things (IOT) technology to deliver efficiency savings, as well as cost savings from the remotely accessible management portal.