.avif)
In the era of sustainability and rising energy costs, understanding the energy profile of commercial buildings has become paramount. An effective tool in this endeavor is the ASHRAE energy audit. For commercial building owners and facility managers, this guide delves into the different types of ASHRAE energy audits, explaining their role in energy management in commercial buildings.
Jump too:
What are ASHRAE energy audits?
Understanding ASHRAE energy audit levels
ASHRAE level 1 energy audit: walk-through analysis
ASHRAE level 2 energy audit: energy survey and analysis
ASHRAE level 3 energy audit: detailed analysis of capital intensive modifications
How much does ASHRAE energy cost?
Why are energy audits necessary?
The importance of energy management in commercial buildings
The role of building analytics in energy management
What are ASHRAE energy audits?
ASHRAE, the American Society of Heating, Refrigerating, and Air-Conditioning Engineers, sets guidelines for various practices in the HVAC&R (heating, ventilation, air conditioning, and refrigeration) field, among others. One of the critical areas where ASHRAE has developed guidelines is energy auditing in commercial buildings.
An energy audit is a systematic process to assess and analyze the energy use and consumption of a given facility, building, or system. Its primary purpose is to identify energy-saving opportunities, inefficiencies, and to recommend ways to reduce energy waste. By conducting an energy audit, one can understand how energy is used in a facility and then prioritize improvements to increase energy efficiency and reduce energy-related costs.
While many large commercial building have building management systems, those systems are best designed for controlling a building's processes rather than auditing its energy usage.
ASHRAE outlines three different types of energy audits, which differ based on how intensive they are and what type of outcome you can expect. It is important to understand what each level of audit entails before deciding which is most appropriate for your commercial building.
Understanding ASHRAE energy audit levels
ASHRAE defines three levels of energy audits, each offering a progressively deeper dive into a building’s energy performance. These levels—Level 1: Walk-Through Analysis, Level 2: Energy Survey and Analysis, and Level 3: Detailed Analysis of Capital-Intensive Modifications—are structured to help building owners and facility managers match the audit scope with their goals, resources, and the complexity of the facility.
Each level builds on the previous one, starting with a quick identification of obvious energy-saving opportunities and scaling up to in-depth system evaluations and financial modeling for major retrofit projects. This tiered approach provides flexibility: whether you’re just getting started or preparing for a major investment, there’s an ASHRAE audit level to suit your needs.
Understanding the distinctions between these levels is essential for selecting the right audit type, aligning your energy goals with your available budget, and ensuring that you're positioned to meet compliance requirements or sustainability targets.
ASHRAE Level 1 Energy Audit: Walk-through Analysis
The ASHRAE Level 1 audit—commonly known as a “Walk-Through Analysis”—is a high-level, preliminary evaluation designed to identify immediate and easily actionable energy-saving opportunities. This audit provides a general snapshot of a building’s energy performance without conducting detailed simulations or calculations.
A Level 1 audit typically includes a review of utility bills and operational data, followed by a walk-through inspection to observe the building’s systems in action. The goal is to highlight obvious inefficiencies and propose low-cost or no-cost energy conservation measures (ECMs).
As of 2024–2025, many Level 1 audits have evolved to include digital tools. Auditors are increasingly using building analytics platforms—such as trend logs or fault detection systems—to pre-identify inefficiencies before they even set foot on-site. In some cases, advanced technologies like thermal imaging drones or IoT-based monitoring snapshots are used to enhance data collection. These innovations help transform Level 1 audits into a more strategic screening tool, helping building managers prioritize the need for deeper Level 2 or 3 audits.
This level is particularly valuable for building owners seeking to establish a baseline understanding of their energy use, comply with local energy benchmarking ordinances, or identify quick wins in sustainability performance.
ASHRAE Level 2 Energy Audit: Energy Survey and Analysis
The ASHRAE Level 2 audit, referred to as an “Energy Survey and Analysis,” builds upon the findings of a Level 1 audit by providing a deeper and more comprehensive evaluation of a building’s energy systems. It goes beyond identifying opportunities by quantifying potential energy and cost savings, and prioritizing ECMs based on feasibility and return on investment.
Key components of a Level 2 audit include a detailed breakdown of energy usage—often benchmarked against similar buildings—on-site inspections of all major energy-consuming systems (including HVAC, lighting, plug loads, and controls), and preliminary financial analyses. These analyses cover projected savings, implementation costs, and estimated payback periods for each recommended measure.
In 2025, Level 2 audits frequently incorporate real-time operational data, integrating insights from advanced platforms such as CIM’s PEAK or ENERGY STAR Portfolio Manager. Auditors are also adding greenhouse gas (GHG) emissions assessments alongside energy and cost data, giving ESG-minded stakeholders a broader understanding of environmental impact. Additionally, assessments of electrification readiness and system resilience are becoming more common, especially for clients focused on long-term sustainability or carbon neutrality.
Level 2 audits are the go-to choice for organizations committed to improving building performance, enhancing ESG reporting, or preparing for meaningful capital planning decisions.
ASHRAE Level 3 Energy Audit: Detailed Analysis of Capital-Intensive Modifications
ASHRAE Level 3 audits—also known as “Investment-Grade Audits”—are the most detailed and resource-intensive type of audit. Reserved for facilities considering major retrofits or long-term infrastructure investments, a Level 3 audit involves exhaustive data collection, technical analysis, and financial modeling.
These audits typically involve advanced submetering and monitoring, energy modeling and simulations (often using tools such as eQUEST or EnergyPlus), and comprehensive lifecycle cost analysis (LCCA). They also account for long-term factors like energy price volatility, incentives, tax credits, and maintenance savings. Level 3 audits are geared toward evaluating capital-intensive ECMs such as HVAC replacements, building envelope improvements, or renewable energy integration.
Recent innovations have expanded the depth of these audits. Many now include carbon abatement cost curves to help organizations align retrofit strategies with climate goals. For large or complex buildings, digital twins and BIM-integrated modeling are being used to simulate building performance and optimize retrofit design. Financial modeling has also become more sophisticated, with analysis that considers time-of-use electricity rates, carbon taxes, and even projected returns under emissions cap scenarios.
This audit level is essential for asset managers, developers, and sustainability teams making high-impact investment decisions that require precision, confidence, and long-term planning.
How much does an ASHRAE energy audit cost?
The cost of an ASHRAE energy audit depends on the audit level, building size, complexity, and data availability. Pricing also varies based on location, reporting requirements, and whether additional services—like real-time analytics or energy modeling—are included.
Here’s a general breakdown by audit type:
Level 1 – Walk-through analysis
- Cost: $0.05–$0.15 per square foot
- Typical Range: $1,000–$5,000+ for small to mid-size buildings
This basic audit involves a utility review and visual inspection. It's ideal for early-stage planning or meeting minimum compliance requirements.
Level 2 – Energy survey and analysis
- Cost: $0.20–$0.50 per square foot
- Typical Range: $10,000–$30,000 for mid-sized commercial spaces
A Level 2 audit provides in-depth energy breakdowns, ECM recommendations, and financial payback analysis. Many organizations use this level for ESG planning or utility incentive programs.
Level 3 – Investment-grade audit
- Cost: $0.40–$1.00+ per square foot
- Typical Range: $30,000–$100,000+ for large or complex facilities
This comprehensive audit includes energy modeling, lifecycle cost analysis, and capital project planning. It's most valuable for major retrofits or decarbonization investments.
Other factors that influence cost
- Accessibility and quality of utility data
- Number of systems to evaluate
- Integration with analytics platforms or digital twins
- Local energy audit mandates or compliance reporting
- Availability of rebates or subsidies from utilities or governments
For the most accurate estimate, it’s recommended to request customized quotes from qualified providers based on your building’s scope and goals.
Why are energy audits necessary?
Building owners should consider energy audits for several compelling reasons:
Cost savings: One of the most direct benefits of an energy audit is the identification of opportunities for energy savings. Implementing the recommended measures can lead to significant reductions in utility bills.
Enhanced building performance: An energy audit can uncover issues affecting the comfort and functionality of a building, such as poor ventilation or inadequate insulation. Addressing these issues can improve the indoor environment, leading to happier occupants or tenants.
Increased property value: Buildings with efficient energy systems and lower operational costs can command higher rental rates and have higher resale values.
Environmental responsibility: Reducing energy consumption reduces greenhouse gas emissions and the building's carbon footprint. This is not only good for the environment but can also be a strong selling point for eco-conscious tenants or customers.
Regulatory compliance: In some states and cities, energy benchmarking and audits are mandatory for certain types of buildings. Performing audits ensures compliance with local regulations and can help avoid potential fines or penalties.
For a comprehensive guide to energy benchmarking regulations in different cities, states and municipalities across the US, check out our blog: “A state-by-state guide to energy benchmarking ordinances and local energy efficiency regulations”
Maintenance and upgrades planning: Energy audits can identify aging or underperforming equipment. This information is valuable for planning maintenance schedules or prioritizing equipment upgrades.
Improved public image: Demonstrating a commitment to energy efficiency and environmental sustainability can enhance a building or company's public image and reputation.
.avif)
The importance of energy management in commercial buildings
Commercial buildings are among the highest consumers of energy worldwide, contributing significantly to global energy demand and associated greenhouse gas emissions. This fact means that for portfolios of commercial buildings, proper energy management is crucial in order to ensure greenhouse gas emissions are kept within manageable levels.
Additionally, amidst a backdrop of globally rising energy prices, using effective building energy management systems translates directly into reduced operational costs. Implementing energy efficient measures and prioritizing low energy usage compounds into significant savings, contributing to a huge positive impact on a company’s bottom line.
With many local, state and national governments implementing stricter energy efficiency standards and regulations, energy management is increasingly becoming a legal obligation for commercial building owners. Many states have legislated energy benchmarking ordinances, which require owners to benchmark their energy usage using the ENERGY STAR Portfolio Manager, in an effort to encourage the implementation of energy efficient measures. Some states have additional energy auditing requirements, requiring commercial building owners to conduct ASHRAE energy audits or retro-commissioning studies and implement the energy-saving measures identified.
With these regulations becoming more and more common, it is important to get ahead of the curve and begin the processes of energy auditing, energy benchmarking and retro-commissioning early, to ensure you are in compliance with any future legislations and are demonstrating environmental responsibility across your portfolio.
For more information on the role of building energy management in commercial real estate sustainability, check out our blog: “Building energy management: A core pillar of commercial real estate sustainability”
The role of building analytics in energy management
Modern commercial buildings have evolved into complex systems with numerous interconnected devices and subsystems. Navigating this complexity to achieve optimal energy management requires more than just human expertise; it demands advanced building analytics platforms, such as CIM's PEAK Platform.
Unlocking data insights: At the heart of platforms like PEAK lies the ability to collect, analyze, and interpret vast amounts of data from various building systems. This data-driven approach provides insights that might be difficult or impossible to discern through traditional means. The ability to visualize energy consumption in real-time, identify trends, and predict future consumption patterns empowers building managers to make informed decisions.
Complementing ASHRAE energy audits: While ASHRAE energy audits offer a comprehensive assessment of a building's energy efficiency, integrating the findings from these audits with analytics platforms can amplify their value. The continuous monitoring capabilities of platforms like CIM's PEAK mean that the recommendations from an ASHRAE audit aren't just implemented and forgotten; instead, their impact can be tracked, assessed, and refined over time.
Predictive maintenance: With predictive analytics, potential issues in building systems can be identified even before they manifest as tangible problems. This not only saves on repair costs but also ensures that energy inefficiencies caused by failing equipment are minimized, saving both energy and money.
Take your energy audit further with real-time building data
CIM's PEAK Platform acts as an always-on, intelligent data source—enhancing your ASHRAE audit insights with live performance trends, fault detection, and predictive analytics.
👉 Watch the demo to see how PEAK can supercharge your building energy data
