In our growing cities, climate change and energy related uncertainties are of great concern. The impact of the Urban Heat Island on comfort, health and the way we use energy still requires further clarification. The outdoor-indoor energy balance model (3D-City Irradiance) presented in this article was developed so as to address these issues. The effects of view factors between urban surfaces on three-dimensional radiation and the effects of fully integrated outdoor-indoor energy balance schemes on heat islands and building indoor thermal loads could be included within different building blocks at a resolution of several metres. The model operated under the ‘stand alone’ mode. It was tested using the Building Energy Simulation Test (BESTest) which demonstrated good levels of agreement for diurnal and seasonal simulations.