Energy Answers with Daniel Burke
Oct 5, 2026 · 9 min · 9 segments
Energy Audits (ASHRAE Level 1, 2, 3) set how much engineering rigor you buy when you pay for an energy audit. Pick the wrong level and you either waste audit money or rest a capital project on a rough…
ASHRAE defines three levels of energy audit, and each one carries more engineering rigor than the last.
Level one is a screening tool for small buildings with limited savings potential.
Level two fits most larger buildings and level three fits expensive capital projects where you cannot afford a wrong savings estimate.
The question for your operation is how much audit rigor your savings potential and your capital plans can actually cover.
So if your electric bill runs five, six or seven figures and you own or manage the buildings behind it, this episode is for you.
Which audit level matches your building's savings potential and your tolerance for error on a capital investment? For years, energy audit meant whatever the seller wanted.
An electrical contractor's audit will likely cover transformers and lights, the equipment that earns that contractor revenue.
ASHRAE defined three levels of audit rigor, first in its guide, Procedures for Commercial Building Energy Audits, now in its second edition, with more than 25 guideline forms describing a complete energy analysis report.
All three levels require a preliminary energy use analysis, a site visit to assess the building and its equipment, a summary of your utility bills with an analysis of whether a different rate would save you money, an energy usage intensity, or EUI, benchmarked against similar sites in your region, and an estimate of savings if the building reached an EUI target.
A better rate saves money with zero capital spent, though eligibility depends on your utility's tariff and your building's operational realities.
ASHRAE defines three levels of energy audit, and each one carries more engineering rigor than the last.
Level one is a screening tool for small buildings with limited savings potential.
Level two fits most larger buildings and level three fits expensive capital projects where you cannot afford a wrong savings estimate.
The question for your operation is how much audit rigor your savings potential and your capital plans can actually cover.
So if your electric bill runs five, six or seven figures and you own or manage the buildings behind it, this episode is for you.
Which audit level matches your building's savings potential and your tolerance for error on a capital investment? For years, energy audit meant whatever the seller wanted.
An electrical contractor's audit will likely cover transformers and lights, the equipment that earns that contractor revenue.
ASHRAE defined three levels of audit rigor, first in its guide, Procedures for Commercial Building Energy Audits, now in its second edition, with more than 25 guideline forms describing a complete energy analysis report.
All three levels require a preliminary energy use analysis, a site visit to assess the building and its equipment, a summary of your utility bills with an analysis of whether a different rate would save you money, an energy usage intensity, or EUI, benchmarked against similar sites in your region, and an estimate of savings if the building reached an EUI target.
A better rate saves money with zero capital spent, though eligibility depends on your utility's tariff and your building's operational realities.
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