Translating building audits into economic value
Energy costs increased by 6.3% year over year (2023-2024) and over the past 25 years, energy costs have risen 2.67% annually. In many jurisdictions where negotiating a procurement agreement is not an option, the only way to reduce costs is to control consumption. One powerful tool in this pursuit is an ASHRAE audit. From Building Performance Standards, like the City of Seattle to benchmarking requirements like Los Angeles, California, there are compliance pathways involving ASHRAE Audits. While the upfront costs of these audits can seem daunting, the Return on Investment for these audits can be substantial and the financial benefits along with risk avoidance can be considerable. Let us delve into the value of this comprehensive assessment.
What is an ASHRAE Audit?
ASHRAE (American Society of Heating, Refrigerating and Air-Conditioning Engineers) audits are detailed energy assessments that analyze a building's energy consumption and identify opportunities for improvement. These audits go beyond a simple walkthrough; they provide a structured and methodical approach to understanding how energy is metabolized and potentially wasted.
There are three levels of ASHRAE audits, each offering varying degrees of depth:
Level 1 (Walk-Through Analysis): A basic assessment that identifies obvious energy-saving opportunities. This is the low hanging fruit audit and can typically perform with a checklist. It involves looking at the current systems and making basic recommendations. The enhancements recommended involve process modifications (Run time adjustments
Level 2 (Energy Survey and Analysis): A more detailed analysis that includes energy calculations and cost estimates for proposed improvements. The energy calculations will provide you with an idea of what your energy use per activity is (Heating, lighting, ventilation, etc.). When looking to reduce energy, understanding your major uses is key. For example, knowing that the major consumer of electricity in your building happens to be the mechanical ventilation system (not the elevators) may help guide an owner to invest in technology that allows for scheduling run times or a variable drive to reduce consumption.
Level 3 (Detailed Analysis of Capital-Intensive Modifications): A comprehensive analysis that involves detailed engineering calculations and financial analysis for major energy-saving projects. This is the most intensive and expensive of the three audits and is not currently required by any jurisdiction.
Do these audits pay for themselves in reductions of energy?
Investing in an ASHRAE audit offers a multitude of benefits, making it a valuable investment for any building owner or manager:
Reduced Energy Costs:
The primary benefit is identifying and implementing energy-saving measures, leading to significant reductions in utility bills. These reductions in costs are related to reductions in consumption of energy.
Audits pinpoint inefficiencies in HVAC systems, lighting, building envelope, and other energy-consuming components. Oftentimes these inefficiencies can be mitigated with low-cost solutions and a fast payback.
Improved Building Performance:
Reducing energy reduces carbon emissions for a building, which means it is more likely to comply with BEPS targets or BEPS compliance pathways.
Better HVAC systems, lighting, and building envelope performance create a more comfortable environment, making your property a more desirable place to live.
Increased Property Value:
Implementing energy-saving measures can increase a building's overall value and reduce risk of “Brown” discount.
Proactive Maintenance:
Audits can identify potential maintenance needs, which can extend the useful life of the equipment.
Informed Decision-Making:
ASHRAE audits provide data-driven insights, enabling informed decisions about energy-saving investments.
The detailed analysis and cost estimates help prioritize projects and maximize return on investment.
It is not the starting place:
An ASHRAE audit is an investment in your building's future. By identifying and implementing energy-saving measures, you can reduce costs, improve performance, enhance sustainability, and increase property value. However due to the cost involved, it is not economically sensible to holistically audit an entire portfolio of properties on a regular candance. it is important to note that just obtaining the audit will not achieve compliance, or even if a property would benefit from an audit.
The starting place on the sustainability journey is understanding where in your portfolio it makes sense to perform an ASHREA audit, when the audit needs to occur and what level of audit is required. It is also beneficial to understand if the compliance pathway that involves the audit is the best path to compliance.
This is where GreenT can help! Our solution is to create the map on your sustainability journey. Please contact us for more information.
