What is an Energy Audit? Level 1, 2, and 3 Explained

There are several reasons to perform an energy audit.

One of the main reasons is to reduce the energy consumption of a building, factory, campus, etc. The question may arise, why reduce energy expenditure? There are five main benefits to this, some directly benefiting the client or building owner and some benefiting society as a whole. The first benefit is that reducing energy results in reducing utility costs. The client will save money, sometimes significantly, over the course of months to years. Next, reducing energy reduces the load on pieces of equipment, for example a steam boiler. If the steam boiler can run less frequently or not as hard, it will last longer and require less maintenance. This will save the client money by not having to replace equipment as often and by spending less money on routine upkeep. After that comes the potential added savings from utility companies. Many times utility companies will impose higher rates on buildings requiring a high demand for electricity. This can be in the form of a ratchet clause or bracketed demand rates. Fourth, reducing energy will directly reduce greenhouse gas emissions. This benefits the overall health of our environment. It could also save money if a carbon emissions tax is implemented where the building is located. Even if a carbon tax is not currently implemented, there is always potential that it could be imposed in the future. And finally, reducing energy can qualify a building for ENERGY STAR® certification. If a building ranks in the top 25% of similar building types, they are eligible to receive a plaque, which improves the marketability of the business.

A few other reasons to perform an energy audit are state and federal mandates, incentives from utility companies, and discovery of operational and safety issues. Depending on the type of facility and where it is located, there may be a legal obligation to perform an energy audit at certain intervals of time. Failure to comply with these mandates can result in significant penalties and fines. The next reason is incentives from utility companies. Utility companies are incentivized to maintain an active and healthy grid. Potential for blackouts is a massive problem for utility companies. So, while seemingly counterintuitive, utility companies will often offer rebates for whole audits, equipment (ex. LEDs, heat pumps, etc.), or per energy value reduced (ex. $0.20/kWh saved). And the remaining benefit of an energy audit is to discover potential operational or safety issues. Energy auditors are third-party, non-biased operators that do not have any motive in selling a product or hiding any discovered issues. They provide an objective view of the facility. So if an auditor observes any safety issues that may have been missed or ignored by on-site staff, that will be noted in the final report. Also, building owners or engineers may assume a building is operating a certain way, for example that each air handler is utilizing airside economizing. But after an audit, it actually be the case that none of them are. This can give building owners good information to go back to contactors and installers about not doing a complete job.

So what exactly is an energy audit? There are three levels of energy audits as defined in the ASHRAE Standard 211. These are outlined in detail below.

Level 1

ASHRAE Level 1 energy audits consist of the following:

·         Building walkthrough to familiarize yourself with major energy systems

·         Utility bill analysis

·         ENERGY STAR® benchmarking

·         High-level recommendations for energy savings

·         Final report, typically in Word or PDF form

The purpose of an ASHRAE Level 1 is to get a sense of what may be possible for energy savings. The walkthrough will show major systems (ex. chiller/boiler system, water source heat pumps, etc.), type of lighting, and general controls. The utility analysis and benchmarking will tell you how much energy the building is using and how that energy consumption compares to buildings of a similar type and size. Using that baseline level of information, a qualified engineer can make some simple observations and recommendations for potential energy savings.

 Level 2

ASHRAE Level 2 energy audits consist of the following:

·         All aspects of a Level 1 audit

·         Detailed inventory of all energy using pieces of equipment, including all lighting

·         Review of all building control systems

·         Meeting with on-site staff to discuss building systems, maintenance issues, and other potential concerns

·         Sophisticated energy calculations to determine where the energy shown in the utility bills is going

·         Further energy calculations and financial analysis to distinguish with potential energy conservation measures (ECMs) are worth pursuing

·         Can estimate initial costs for ECMs

ASHRAE Level 2 audits are the most common form of energy audits. This method will provide the highest output-to-cost ratio.

 Level 3

ASHRAE Level 3 energy audits consist of the following:

·         All aspects of a Level 2 audit

·         Tracking actual equipment energy over periods of time using data loggers

·         Using much more intensive energy calculation methodologies, typically simulation software that meets ASHRAE standards for accuracy

·         Getting real quotes from qualified contractors for potential projects

·         Evaluating feasibility of implementing an ECM (ex. how will a chiller fit into the current mechanical room, etc.)

ASHRAE Level 3 audits are the most accurate form of energy audits, but also the most cost intensive. These audits are best suited for scenarios in which a very high level of precision is necessary.

Contact Elliott Energy today to assist with your next energy audit!