How to Turn ASHRAE Energy Audits into Real Cost Reductions

• Posted by Jim Dore
• On Thu Aug 15

Transitioning to energy-efficient practices is crucial for businesses aiming to reduce costs and environmental impact. One effective way to start the process is through an ASHRAE energy audit. These audits, based on standards set by the American Society of Heating, Refrigeration, and Air Conditioning Engineers, are conducted by energy efficiency consultants.

In this blog post, we’ll cover common audit findings and how to convert them into sustainable strategies that drive efficiency, cost reduction, and savings.

Understanding ASHRAE Energy Audits

An ASHRAE energy audit is a detailed examination of a building’s energy use to identify opportunities for efficiency improvements. ASHRAE audits differ from other building energy audits due to their standardized guidelines and long history. They follow specific standards for calculating energy savings, greenhouse gas emissions, cost savings, and the actual costs of implementing energy conservation measures.

ASHRAE energy audits have three levels: Level 1 (Preliminary Audit), Level 2 (Detailed Audit), and Level 3 (Comprehensive Audit). Each level varies in scope and depth, providing increasing detail and accuracy.

Turning Audit Insights into Actionable Steps

Once the ASHRAE energy audit is complete, the next step is to turn insights into tangible strategies. By breaking down the audit’s recommendations into immediate, medium-term, and long-term strategies, organizations can create a clear and actionable roadmap for improving energy efficiency.

Here’s how to prioritize and implement recommendations to drive efficiency and achieve real cost reductions:

Immediate Actions to Take

Immediate-term strategies are low-cost or no-cost measures that can be quickly implemented to save energy and reduce costs. Focus on these quick wins to see immediate benefits from the audit’s recommendations without significant upfront costs.

• Optimize Thermostat Settings: Adjust thermostat settings based on occupancy patterns to reduce energy waste.
• Improve Insulation: Seal gaps around doors and windows to prevent heat loss in winter and heat gain in summer.
• Implement Behavioral Changes: Educate staff about energy-saving practices, such as turning off lights and equipment when not in use.

Medium-Term Strategies

Medium-term strategies involve more substantial upgrades requiring moderate investment. These actions often cost more but provide significant energy savings and operational improvements over time.

• Install Energy-Efficient Lighting: Replace incandescent, fluorescent, and outdated LED lights with new LED lighting technology.
• Upgrade HVAC Systems: Invest in high-efficiency HVAC units with advanced controls for better performance and lower energy consumption.
• Incorporate Smart HVAC Technology: Implement Smart technology with a fan control system on RTUs for increased fan control to save energy and reduce compressor run time.
• Administer Compressed Air Optimization: Complete compressed air initiatives that address air leaks and improve productivity and efficiency.
• Improve Building Envelope: Enhance insulation in walls, roofs, and floors, and upgrade windows to reduce heat transfer and improve thermal comfort.

Long-Term Strategies

Long-term strategies are larger projects with higher upfront costs but substantial long-term benefits. These investments are crucial for achieving significant energy savings and enhancing sustainability.

• Implement Building Automation Systems: Install advanced building management systems to optimize energy use through real-time monitoring and control.
• Upgrade Major Equipment: Replace outdated boilers, chillers, and other large equipment with high-efficiency models.
• Integrate Energy Storage Solutions: Introduce energy storage systems to optimize energy usage and reduce peak demand charges.
• Renewable Energy Integration: Integrate renewable energy sources such as solar panels or wind turbines to reduce dependence on grid electricity.

Avoiding the Cost of Delay

The financial impact of delaying project implementation after a building energy audit is significant. Every day that passes without action means lost savings and increased costs. For example, if a $100,000 lighting project with $30,000 in annual savings is delayed by one year, the business loses $30,000 in savings.

Over two years, this loss doubles — which is two-thirds of the project’s initial cost. Additionally, the cost of materials and labor can increase over time due to inflation and market changes. New technologies are continuously being developed, and waiting too long might result in more upgrades later, compounding costs and complexity.

To put it plainly, acting promptly ensures that savings are realized sooner and improves the return on investment. On the other hand, delayed implementation could mean significantly higher project costs in the future.

Overcoming Common Obstacles

Implementing audit recommendations can be challenging due to budget constraints, operational disruptions, or lack of expertise. Here are some strategies to overcome these obstacles and get the most out of an energy audit:

Budget Constraints

Financial limitations can make committing to energy efficiency projects challenging, especially when upfront costs seem high. Start with low-cost, high-impact actions and gradually move to more significant investments as savings accumulate. Prioritize projects that offer quick returns to build momentum. By Making Energy an Asset® and using it strategically, you’ll be able to free up funds for larger initiatives.

Many energy efficiency programs offer financial incentives such as rebates, grants, and low-interest loans. These are typically outlined in ASHRAE audit levels 2 and 3, and can help offset the costs of upgrades. Submitting applications promptly can help secure these incentives and accelerate your return on investment.

Operational Disruptions

Implementing energy efficiency upgrades can disrupt normal business operations, especially in industries that operate 24/7, like healthcare. Scheduling upgrades can be challenging in these environments. You’ll need to work closely with your energy consultant to develop a phased implementation plan that minimizes disruptions.

Start with noninvasive upgrades, such as installing energy-efficient lighting, during nighttime or off-peak hours. For more complex projects, like HVAC system upgrades, create a detailed schedule that allows for small sections to be worked on at a time, ensuring critical operations remain uninterrupted. Temporary measures, such as portable HVAC units, can be used to maintain necessary conditions during upgrades.

Lack of Seamless Transition from Audit to Implementation

Many organizations experience a gap between the audit and the actual implementation of recommendations. Keeping the same team that conducted your audit on board can be a game-changer.

They already understand your specific needs and have been working closely with you, so there’s usually no lull between the audit and the implementation phase. Their familiarity with your facility allows for a smoother transition and more efficient execution of the recommendations.

Find Energy Cost Reductions Faster with Chateau Energy

Turning ASHRAE energy audit insights into actionable steps is a powerful way to reduce costs and improve energy efficiency. Working with a professional energy efficiency consultant can help you reap these financial benefits faster.

Chateau Energy Solutions has decades of experience helping clients nationwide become more energy efficient. Our experts have completed hundreds of energy audits and will get to know your facilities from the inside out. This deep understanding allows us to guide you seamlessly from audit to implementation, ensuring you achieve the maximum ROI.

Don’t let the insights from your energy audit collect dust. Avoid the cost of delay — take the next step towards a more sustainable and cost-effective future.

Contact us today to learn how we can help you achieve significant energy savings and a brighter, more efficient tomorrow!

About the Author:

Jim Dore, Chateau Energy Solutions, Vice President, Service Solutions
Jim is the Vice President of Service Solutions and leads the business development team at Chateau Energy Solutions. He has 25 years of experience in consulting, designing, selling, and funding energy efficiency and electric vehicle infrastructure projects and programs. Jim has been directly involved with more than $125 million in energy efficient turn-key projects throughout his career. His experience, deep industry knowledge, and relationships keep him at the forefront of emerging energy technology and program funding solutions. When Jim isn’t trying to solve the countries energy challenges, he can be found enjoying motorsports, hunting, fishing, wing shooting, and traveling with his wife, Deborah, of 27 years. Contact Jim on LinkedIn.