DEGREE DAY METHOD
Degree Day concept was first developed to compare indoor comfort conditions to outdoor temperatures. For example, Heating Degree Day (HDD) with a Base Temperature of 65°F; assumes that whenever the outdoor temperature drops below 65°F you will require heating. Typically, HDD’s are published on charts; listed by location at various base temperatures. Once you have the correct HDD for your location and base temperature, you can estimate the yearly heating energy usage.
A drawback for HDD is that it assumes all days of each month are identical. Additionally this method does not allow for climate changes from year to year. The benefit of this method is that you can preliminarily size equipment with minimal calculations. Think of it similar to a macro analysis method, advantages for early design purposes.
BIN METHOD
Bin Method is developed from historical weather data for a particular location. Calculations may be performed using weather bins, which are created by recording all hourly occurrences of closely related weather as if they were identical. Hours that fall into a certain range of some parameter, most often dry bulb temperature are collected, and then distinguished by the mid-point of the range. The way to deal with other parameters is to calculate the average value of all of these parameters in each individual bin, which it referred to as the "mean coincident" value. That average value is then used for energy calculations.
A drawback for Bin Method is that it assumes that all hours in each bin have the same “mean coincident” conditions. Additionally, because the average dry bulb values are used for calculations purposes, the extreme high and low conditions may be excluded from your calculations. The benefit of this method is that you can fine tune the selection and sizing of equipment. Think of it similar to a micro analysis method, advantages for detail design purposes.