What is an energy audit?

An energy audit is a detailed evaluation of a building’s energy use. It’s designed to uncover where energy is being wasted, so you can make improvements that save money and reduce environmental impact. Think of it as a health check for your property’s energy systems, helping you pinpoint ways to run things more efficiently.

For multifamily property managers, understanding what an energy audit is can provide real benefits. By reducing energy waste, you’re not just cutting costs but also improving tenant satisfaction with better heating, cooling, and overall building comfort.

Why is an energy audit important?

Energy audits are key to keeping your property’s energy use in check. Without them, you might never know just how much energy—and money—you’re wasting on things like outdated HVAC systems or poor insulation. By addressing these inefficiencies, you can reduce utility bills, sometimes by as much as 30%.

On top of cost savings, these audits also help you stay on top of sustainability goals. For example, if your building is inefficient, you’re likely contributing to higher carbon emissions. Reducing these emissions aligns with growing tenant demand for environmentally responsible properties, making audits a must in today’s market.

Who conducts an energy audit?

Energy audits are typically carried out by certified energy auditors. These professionals have the expertise and tools to thoroughly assess energy use in both residential and commercial properties. You might find auditors through your utility provider or local energy efficiency programs.

For multifamily properties, choosing an experienced auditor is critical. Larger buildings come with more complex energy systems, which require a deeper level of analysis. A certified auditor can help you find specific ways to optimize energy use across the entire property, whether it’s upgrading HVAC systems or improving insulation.

What is done during an energy audit?

An energy audit involves a thorough investigation of your building’s energy consumption. The auditor will check everything from your insulation and HVAC systems to the number of doors and windows on the property. They’ll also look at past utility bills to understand your current energy usage.

Part one: The evaluation

The first part of the audit is a comprehensive evaluation of your building’s energy systems. This includes inspecting the insulation, HVAC units, windows, and appliances to determine where energy may be leaking. An example is discovering that your HVAC system is running more frequently than necessary, driving up your costs.

In larger multifamily buildings, these inefficiencies can add up quickly. For instance, if multiple units are poorly insulated, you may be losing heat or cool air, making your systems work overtime. An evaluation helps identify such problems before they become expensive issues.

Part two: Airtightness and other tests

The second phase involves airtightness tests and other diagnostic measures. In the blower door test, auditors use specialized equipment to measure how much air leaks out of your building. This is where you often discover that drafty windows or poorly sealed doors are costing you more than you think.

It’s amazing how small cracks can lead to big losses in energy. For example, a single leaky window might seem harmless, but it can be equivalent to leaving a small window open 24/7. Auditors may also use thermal imaging to detect invisible heat loss, giving you a clear picture of where improvements are needed.

Part three: Recommendations to improve energy efficiency

After completing the tests, the auditor will give you a set of actionable recommendations. This could include adding weatherstripping to doors, upgrading insulation, or installing energy-efficient lighting. Implementing these changes not only cuts costs but also improves tenant comfort, which can increase tenant retention.

Here’s where technology can also play a big role. Using energy management software, you can track your property’s energy performance and monitor savings over time. These tools offer real-time insights, making it easier to maintain energy-efficient practices throughout the building.

How do I get an energy audit?

To get an energy audit, start by contacting your utility provider. Many offer free or low-cost audits, especially for larger buildings like multifamily properties. You can also find certified energy auditors through organizations such as the Residential Energy Services Network (RESNET).

Some local and state governments provide incentives for energy audits. These programs can reduce the cost of the audit and even offer rebates for energy-efficient upgrades. By taking advantage of these resources, you can make the process more affordable and accessible for your property.

Are there different types of energy audits?

Yes, there are two main types: preliminary and detailed audits. A preliminary audit is a simple, quick walkthrough, providing a general overview of your energy usage. It’s great if you’re just starting out and want to get a sense of potential problem areas.

A detailed audit digs much deeper. It involves advanced testing and data collection, giving you a comprehensive report on where energy inefficiencies lie. If you manage a larger or older property, a detailed audit is usually the better option as it provides more precise recommendations for improvement.

How do I conduct an energy audit of my own home?

If you’re handy and want to conduct a basic audit yourself, you can start by checking for obvious air leaks. Walk around your home, inspecting windows, doors, and outlets for drafts. You can seal leaks with weatherstripping or caulk, which can make a noticeable difference in your energy bills.

While DIY audits are a great way to catch small issues, they won’t be as thorough as a professional audit. For larger properties or if you’re unsure about your findings, it’s a good idea to hire a professional. They’ll have access to advanced tools like thermal cameras and blower doors, providing more accurate insights.

Is an energy audit free?

In some cases, these audits can be free or low-cost, particularly if provided by your local utility company. However, these audits tend to be less detailed and may not cover all the areas you’d want in a multifamily property. Still, they can give you a useful starting point for making improvements.

For a more comprehensive audit, you will likely need to hire a professional. Although there’s an upfront cost, the potential savings on energy bills can make the investment worthwhile in the long run. Plus, certain rebates or energy incentives may help offset the cost.

How much should an energy audit cost?

The cost of an audit varies depending on the size and complexity of your property. On average, a professional audit for a multifamily building could range from $100 to $600. Keep in mind, larger properties with multiple units will generally be more expensive due to the detailed analysis required.

However, the savings from fixing identified issues can quickly cover the initial cost of the audit. Many auditors report that clients can save between 5% and 30% on energy bills after implementing their recommendations. That means in just a few years, the audit can pay for itself.

How long do energy audits take?

The length of time required for an energy focused audit depends on the size and layout of the property. For a typical multifamily building, the audit may take between four and six hours. This includes both the physical walkthrough and any necessary testing, such as airtightness or thermal imaging tests.

Once the audit is complete, you should receive a report within a few days. Larger, more complex properties might require longer, especially if the auditor needs to analyze extensive energy data from multiple units.

How do companies audit energy use?

When companies audit energy use, they follow a structured process similar to residential audits but on a larger scale. Professional auditors use tools like thermal cameras, airflow meters, and energy management software to gather data on energy consumption across the property. They’ll evaluate systems like HVAC, lighting, and insulation to pinpoint inefficiencies.

For energy management in multifamily properties, audits are essential for identifying savings opportunities. With the data collected, property managers can make informed decisions about energy-saving upgrades, ensuring that the building operates more efficiently.

What is an energy audit checklist?

An energy audit checklist outlines all the key areas that should be inspected during an audit. This can include insulation levels, HVAC performance, lighting, and windows. Using a checklist ensures that nothing is missed, providing a thorough look at your property’s energy efficiency.

Many professional auditors use a checklist as part of their process. Property managers can also use this as a tool to periodically review their energy systems, even between formal audits. Staying proactive helps maintain efficiency and catch potential issues early.

Is an energy audit worth doing?

An energy audit can uncover inefficiencies that are costing you thousands of dollars each year in wasted energy. By making simple fixes like improving insulation or upgrading appliances, you can dramatically reduce energy use.

These audits also align with ESG in property management, helping you meet sustainability goals and attract tenants who prioritize environmental responsibility. In an era where energy efficiency is a major selling point, an audit can boost both your property’s performance and its market appeal.

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One client monitored 146 priority targets resulting in savings of $630,000 and a global reduction of 22 million kW across 12 sites.

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