In these days of economic uncertainty, it is important to keep your building operating expenses to a minimum. Consequently, a commercial energy audit is a business decision that helps guide and prioritize where to reduce costs, to increase profitability, and be more energy efficient.
If your building includes unnecessary energy costs, they increase your operating expenses. Because by operating an energy-inefficient building, you are overpaying your utility provider (gas and electricity) for energy.
A good commercial energy audit can help you save between 5% and 30% annually on your energy costs. In addition, there are additional benefits for your business including the increased value of your building, improved employee work environment, and reduced carbon footprint.
Let us discuss what is and the benefits of a commercial energy audit to lower your building energy costs and increase your business profitability.
Commercial Energy Audit Overview
A commercial energy audit is a process of having a certified energy auditor assess your building for energy savings opportunities. For example, energy audits are available by your local utility, retail energy provider, and private businesses.
The results of the energy assessment process are the energy audit report. It identifies problems in your building and includes a recommendation plan, which, if followed, leads to reduced energy costs.
Most buildings will benefit from a commercial energy audit, including commercial, healthcare, higher education, industrial, and more. Since every building is different, each offers opportunities which can reduce energy usage. Accordingly, this is why each requires its own unique commercial energy audit assessment.
A commercial energy audit is the first step in reducing energy consumption. On average, energy costs account for one-fifth to one-third of a building’s total operating cost. Often, commercial energy audit cost can be offset by the savings from energy reduction projects implemented.
The commercial energy audit can support the business case for energy conservation projects. Also, these audits are often necessary for obtaining third-party financing or incentives for a project.
The scope of a commercial energy audit will vary depending on your business needs and goals. For example, it can be as simple as assessing the impact of key equipment in the building or as complex as a comprehensive survey and analysis of a campus.
How A Commercial Energy Audit Works
A commercial energy audit is of value when it evaluates all building energy systems in addition to the corresponding utility data. In other words, combining the quantitative data with the qualitative data found on-site is the best means of identifying opportunities to improve your energy efficiency.
REVIEW HISTORICAL UTILITY DATA
A building’s historical utility bills are reviewed to determine its annual energy consumption. One year’s utility history helps identify the energy usage in summer and winter. Because this is when air conditioning and heating are most in use, resulting in higher energy bills.
The commercial energy auditor will focus on your building’s energy kWh (usage) and kW (demand) consumption. While both are interrelated units of measurement, the difference between kWh and kW is that a kWh reflects the total amount of electricity used, while a kW is the rate-of-usage.
Most electric utilities charge customers for total kWh energy-consumption and peak kW power consumption. Consequently, knowing when and rate energy consumed allows your business to reduce energy expenses.
REVIEW ENERGY SYSTEMS
A commercial energy auditor will perform a walk-through of your building to collect on-site qualitative data. Generally, this is done with your building manager to ensure communication, completeness, and efficiency.
The commercial energy auditor will review the following systems:
- Mechanical Systems: HVAC units, boilers, water heaters, chillers, and more are assessed to determine the current state of equipment, age, life expectancy, and performance. The energy auditor will take notes or pictures of model numbers and spec plates to see if your business could benefit from installing upgraded mechanical systems.
- Interior and Exterior Lighting: Your building may still have compact fluorescent or incandescent light bulbs, which use significantly more energy. Consequently, the energy auditor will look at every lighting fixture to get the most accurate lighting count. Accordingly, switching older lighting to LED technology can save of up to 30%.
- Thermal Boundaries: Your building envelope (windows, insulation, roofs, etc.) seal is essential to keep your conditioned spaces from leaking air. Because ensuring proper insulation throughout the building minimizes heating and cooling costs.
- Miscellaneous Systems: Every building is unique and operates differently. So, if your building has other energy systems like geothermal pumps or solar energy, those systems can and will be evaluated by the commercial energy auditor.
Depending on the type of audit (discussed below), the commercial energy auditor may take measurements of temperatures, pressures, light levels, power draw, and other things.
REPORTING
After completing the commercial energy audit, you will receive the energy audit report identifying inefficiency issues in your building energy systems with suggested solutions. This report reflects the qualitative data collected from the audit (ex: mechanical system model numbers) and the quantitative data collected from utility history. Afterward, the certified energy engineer will provide you with specific prioritized steps, investments, and anticipated savings to help your company achieve your goals of being more energy efficient and lowering energy costs.
Types Of Commercial Building Energy Audits
The type of commercial energy audit needed will vary based on business size, need, and budget. For example, the scope of an energy audit for a large manufacturing company would be more rigorous, extensive, and costly than for a small business.
Because of so much variance in the industry as to what exactly is composed in a commercial building energy audit, ASHRAE has defined varying types (degrees of energy audits). Specifically, these different types of audits are ASHRAE Level 1, ASHRAE Level 2, and ASHRAE Level 3 audits.
As previously mentioned, your commercial building may not require an extensive investment of engineering hours in the energy audit. In other words, the properly sized commercial energy audit should provide the right balance between audit cost and value of the audit. In short, most important is that you get value for your investment.
Here are the different types of commercial energy audits:
Level 0
- It is a quick and inexpensive walk-through energy audit.
- Building managers receive a list of 15-20 energy saving ideas to consider.
- No analysis or estimates.
- Allows the business owner to determine which properties should be considered for a more detailed energy audit.
Level 1
- A walk-through energy audit to produce a Preliminary Energy Use Analysis.
- The energy audit report is brief, minimal engineering time, and costs to identify energy efficiency measures (EEMs).
- Estimated costs and energy savings are a rough order magnitude.
- Focus on low-cost and no-cost measures.
o Summary of utility data, rate change savings, energy use, bench-marking, and targeting.
Level 2
- A walk-through energy audit to produce a Preliminary Energy Use Analysis.
- Intended for larger buildings where more engineering time is needed while balancing costs.
- Includes a complete description of the building, equipment inventory, energy balance, detailed energy savings and costs.
- Also a financial analysis of EEMs, rough estimates of capital project costs and savings
- A plan for measurement and verification of each EEM.
Level 3
- A walk-through energy audit to produce a Preliminary Energy Use Analysis.
- This is an Investment Grade Audit (IGA) typically as part of a performance contract.
- Designed to provide additional engineering time for more expensive capital projects where less risk is tolerated.
- Trend and data loggers are used to model how the building reacts to changes in ambient conditions.
- HVAC measurements and simulations performed.
- Detailed costing and life cycle assessments provided, plus schematics for contractor installations.
Commercial Energy Audit Conclusion
A commercial energy audit will guide and prioritize where your business can reduce costs, increase profitability, and be more energy efficient.
In addition to cost savings, there are additional benefits for your business including the increased value of your building, improved employee work environment, and reduced carbon footprint.
Most buildings will benefit from a commercial energy audit, including commercial, healthcare, higher education, industrial, and more.
The type of commercial energy audit needed will vary based on building size, need, and budget.
As a business owner, you need to ensure that the commercial energy audit provides the right balance between audit cost and the value of the audit. In short, most important is that you get value for your investment.
Call us at (888) 920-2434 or Contact Us to discuss how our Energy Broker Services can help your business take control and lower its electricity and gas costs.