Energy management often begins with an energy audit, yet many energy managers are uncertain what to include in the scope. The American Society of Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE) provides guidelines for three distinct levels of energy audits, each with its specific depth and focus. Merely selecting one of these predefined levels is usually an oversimplified approach. However, understanding the differences between the levels, particularly between Level 2 and Level 3 audits, can prepare you to work productively with a professional engineer to fine-tune the audit scope to meet your needs.
Level 2 Audit: The Detailed Assessment
The ASHRAE Level 2 audit is more comprehensive than a basic Level 1 audit, which is often referred to as a “walk-through analysis.” Level 1 typically provides a preliminary, high-level overview of facility operations and energy use, often identifying the most obvious areas of energy insufficiency. A basic list of recommended energy conservation measures (ECMs), sometimes called energy efficiency measures (EEMs), will be provided, with general guidance regarding cost levels for the measures (high, medium, or low).
A Level 2 audit involves a more comprehensive building survey and energy analysis. A key goal of this audit is to reveal the building’s energy demand patterns and identify more detailed, practical, and cost-effective ECMs.
Key Features
- Detailed analysis of energy consumption: This audit involves a thorough analysis of energy bills and consumption patterns over a minimum of 12 months to understand seasonal variations.
- In-depth survey: Unlike Level 1, a Level 2 audit includes a detailed survey of the building and its systems, including HVAC, lighting, and other systems. Interviews with facility staff are also generally included.
- Identification of ECMs: Level 2 provides a detailed list of energy conservation measures, along with an associated costs and savings analysis. Cost estimates will be rough rather than based on actual bids.
- Financial analysis: Level 2 also includes a more detailed financial analysis than Level 1, offering payback period and return on investment (ROI) estimates for proposed ECMs. The impact of any available utility incentive support will also generally be noted.
Level 3 Audit: The Precise and Comprehensive Approach
The ASHRAE Level 3 audit is usually termed a “detailed analysis of capital-intensive modifications.” It may also be called an “investment-grade audit.” The assumption is that the report’s recommendations will include improvements requiring capital investments, rather than focusing on low- or no-cost measures.
A Level 3 audit incorporates everything included in Level 1 and 2 audits, plus the following important additions.
Key Features:
- In-depth data collection: This audit involves extensive data collection over a long period. It may include sub-metering and monitoring to understand complex interactions of systems.
- Detailed simulation modeling: Using the collected data, Level 3 often employs simulation models to predict how proposed changes will impact energy consumption.
- Comprehensive ECM evaluation: Level 3 provides an in-depth evaluation of major energy-saving measures, considering long-term impacts and interactions between systems.
- Extensive financial analysis, including life cycle costs: This level includes a detailed financial return analysis of the proposed ECMs, considering maintenance, operation, and replacement costs. Vendor quotes for implementation are generally solicited. A complete life cycle cost analysis of ECMs is often provided, considering not only the initial investment but also long-term operational and maintenance expenses.
- Risk analysis: The Level 3 audit includes a detailed risk analysis of proposed energy conservation measures, assessing potential operational impacts and reliability concerns.
- End-use breakdowns: This level provides a granular breakdown of energy consumption, analyzing specific end-use components like lighting, heating, and cooling, offering a deeper understanding of where energy savings can be most effective.
- Historical data analysis: Unlike Level 2, Level 3 may include a multi-year analysis of historical energy data to identify long-term trends and anomalies.
Choosing the Right Level
A number of key factors will inform decision-making around audit levels, including the following considerations.
- Building complexity: For more complex buildings, a Level 3 audit may be necessary to accurately assess and address all energy-saving opportunities.
- Specific ECMs: If desired, a Level 3 analysis can target specific ECMs, rather than analyzing a whole facility.
- Budget and goals: The choice between Level 2 and 3 depends on the facility’s budget, energy goals, and the depth of analysis required. Level 3 is sometimes reserved for projects that require third-party financing.
- Long-term planning: For capital-intensive facility planning that requires detailed equipment condition assessments, a Level 3 audit is appropriate.
- Incentive support availability: Many states and utility companies offer incentives for facility assessments. Programs vary, and a good consulting engineering firm can help identify appropriate incentive offerings for any particular geographical area or project objective. For instance, in Wisconsin, the Focus on Energy program provides an incentive covering 50% of the cost of an investment-grade energy study, up to a maximum of $15,000.
Qualifications for Performing Energy Audits
When selecting professionals to perform energy audits, the qualifications and expertise required for Level 2 and Level 3 audits can vary significantly:
Level 2 Audits:
- These audits can often be conducted by experienced energy auditors, engineers, or energy consulting firms.
- The professionals should have a solid understanding of building systems and energy management principles.
Level 3 Audits:
- Due to its complexity and depth, a Level 3 audit typically requires a team with specialized expertise.
- Design engineering firms are often necessary for their technical knowledge in building systems and energy modeling.
- Construction or contracting firms play a crucial role in providing accurate cost estimating for the proposed capital-intensive changes.
- The team may also include financial analysts to conduct the comprehensive financial and life cycle cost analysis.
- Professionals conducting Level 3 audits often hold advanced certifications and have extensive experience in energy engineering and management.
In conclusion, Level 2 audits offer valuable insight for many facilities, while Level 3 audits provide an in-depth analysis for more complex facilities, capital-intensive projects, or both. The choice of audit level should align with a facility’s specific needs, complexity, and long-term energy goals. Additionally, selecting the right professionals with appropriate qualifications is critical in ensuring the effectiveness and accuracy of the energy audit.
Partner with GBA for Tailored Energy Audit Solutions
As you consider undertaking an ASHRAE Level 1, 2, or 3 energy audit, partnering with a knowledgeable and experienced firm is crucial. GBA understands each aspect of these types of audits. We work closely with potential customers during the proposal phase to tailor the scope to each customer, ensuring that the audit is aligned with energy management goals. Contact us to begin a conversation.
Author: Alex Dodd, QCxP, Associate, GBA Wisconsin
