How Much do Energy Audits Cost?

How Much do Energy Audits Cost

An energy audit is the identification, survey and analysis of the energy usage of a building which is carried out to optimize its efficiency. In other words, it helps maintain the same level of output while minimizing consumption. It also guarantees reduction in terms of cost to the building owner and carbon footprint to the planet, respectively.

The energy efficiency grades you’ve probably seen posted in entryways and lobbies, are “score cards” which all buildings over 25,000 square feet get after carrying out the process of benchmarking (analysis of building’s energy usage and utility bills) which falls under the same law. Local Law 97 requires buildings to meet new energy efficiency goals, so it’s necessary to address this in order to actually reduce emissions.

It is essentially a ‘health check-up’ for your building. Energy audits are performed to maximize cost effectiveness prioritizing health, safety & comfort. Experts (energy service companies- ESCOs, energy consultants, and engineering firms) complete a comprehensive diagnosis using cutting-edge technology to thoroughly evaluate & rectify the situation at hand. These are mandated to be performed by highly trained contractors as they own the necessary knowledge and skill set to precisely estimate potential savings.

New York City Local Law 87 mandates for buildings over 50,000 square feet to perform energy audits & retro-commissions periodically as part of the Greener, Greater Buildings Plan. The law intends for building owners to remain informed about their energy consumption patterns so as to ideally maximize energy efficiency and slash carbon emissions.

Here’s why it is important to do energy audits –

Need for Energy Audits Description
Reduced Energy Expenses Energy audits NYC help identify inefficiencies. They potentially reduce energy costs through improved practices and technologies.
Identify Equipment Problems Auditors can detect issues like leaks or improper ventilation, preventing costly repairs and ensuring safety.
Increased Employee Comfort Enhancements from audits can lead to better insulation and air quality, resulting in a more comfortable work environment.
Enhanced Property Value Implementing energy-efficient measures can increase the overall value of the property.
Longer Equipment Lifespan Upgrading to efficient equipment reduces wear and tear, extending the lifespan of assets.
Lower Carbon Footprint Regular audits help organizations identify areas for reducing energy consumption, contributing to sustainability goals.
Compliance and Safety Audits ensure compliance with regulations and identify safety hazards related to energy systems.

What to expect?

The basic requirements of the law are :-

1. Determining how and when a building needs to comply

2. Conducting an energy audit & retro-commissioning of all the systems mandatorily which will enable the owners to submit the Energy Efficiency Report. The report is to be compulsorily submitted to the City once every ten years.

These 6 steps comprise conduction of an energy audit

 

Conducting an energy audit is a systematic approach to evaluating energy consumption within a facility. The primary goal is to identify opportunities for energy savings and enhance overall efficiency. The following six steps outline the induction process of an energy audit, providing a comprehensive framework for organizations aiming to optimize their energy use.

 

1. Identify the area that needs to be audited

The first step involves pinpointing specific areas within a facility that require an energy audit. This could be an entire building or specific departments that exhibit high energy consumption. Factors influencing this decision may include historical energy bills, operational changes, or new equipment installations. A targeted approach helps in focusing resources effectively and ensures that the audit addresses the most significant areas of concern.

2. Identify the list of energy-using equipment

Once the area is selected, the next step is to compile a comprehensive inventory of all energy-consuming equipment. This includes lighting systems, HVAC units, machinery, and any other devices that utilize electricity or fuel. Documenting this list is crucial as it serves as the foundation for analyzing energy consumption patterns and identifying inefficiencies. Each piece of equipment should be categorized based on its type, usage frequency, and operational status.

3. Determine the Operating Hours for Equipment Being Used

Understanding when and how long each piece of equipment operates is vital for accurate energy consumption analysis. This step involves collecting data on operating hours, which can vary significantly based on production schedules or occupancy levels. By documenting these hours, auditors can calculate the total energy usage more precisely and identify opportunities for reducing unnecessary operation times.

 

4. Record Power Measurements from Installed Meters

If available, recording power measurements from installed meters provides valuable insights into real-time energy consumption. This may include readings from electrical meters, lux levels from lighting systems, and other relevant metrics. Employing metering devices can help validate assumptions about energy use and identify peak consumption periods or anomalies in usage patterns. If meters are not installed, auditors may consider temporary installations during the audit period to gather accurate data.

5. Calculate the Energy Consumption of Existing Processes/Equipment

With all necessary data collected, auditors can proceed to calculate the total energy consumption of existing processes and equipment. This calculation typically involves summing up the energy used by each piece of equipment based on its operating hours and power ratings. The results will reveal which systems consume the most energy and highlight potential areas for improvement through efficiency upgrades or operational changes.

 

6. Identify Opportunities for Energy Waste

The final step in this induction process is to identify opportunities for reducing energy waste. This can involve reviewing checklists of common inefficiencies, conducting walk-through assessments, and engaging with facility personnel to gather insights on operational practices. Potential measures may include upgrading to more efficient equipment, optimizing control systems, or implementing behavioral changes among staff. Documenting these opportunities is essential for developing actionable recommendations aimed at improving energy efficiency.

The process can also be looked at in levels, where the initial level checks the heating, insulation, furnace filters, ductwork, equipment testing, lighting and a comprehensive combustion analysis. Sometimes energy audits are done as part of broader capital needs assessment where interiors are also checked.

Preliminary Analysis Level 1 Level 2 Level 3
  • Calculate kWh/m sq
  • Compare to similar landscapes 
  • Rough costs & savings for ECMs
  • Identify capital projects
  • Energy survey & analysis (detailed)
  • End use breakdown
  • Cost and savings for ECMs finalised
  • O&M charges
  • Refines analysis
  • Additional measurements 
  • Hourly simulation

The cost of an energy audit & efficiency goals

The New York State Energy Research and Development Authority (NYSERDA) upon partnering with local contractors can render free energy audits for one-to-four-family buildings.  Audits cost anywhere between a few thousand dollars to $20,000 to $30,000, depending on the building’s size.

The owner will be handed a list of recommendations post the audit, which will include retro-commissioning measures (like fixing light, tweaking energy usage), and also larger investments – low flow fixtures, replacing boilers. This is done to give an insight into savings and cost.

To know more about Energy Audits, get in touch with our experts!


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