ASHRAE Audits: A Practical Guide to Smarter Energy Decisions

As energy costs rise, building systems become more complex, and efficiency standards continue to evolve, organizations are looking for clear, more reliable ways to understand how their facilities are performing and identify what improvements make sense.

That’s where ASHRAE energy audits and assessments come in.

This article breaks down what ASHRAE audits are, how the different levels work, and what building owners and operators should realistically expect from the process, informed by our engineers, Bibek Prajapati and Nishan Adhikari, who have direct, real‑world experience conducting these assessments across a range of facilities.

What is an ASHRAE Audit/Assessment?

Developed by the American Society of Heating, Refrigerating, and Air‑Conditioning Engineers (ASHRAE), an ASHRAE Audit, also referred to as an ASHRAE Assessment, is a structured evaluation of how a building uses energy.  It looks at building systems like HVAC, lighting, controls, and operations to find ways to reduce energy use, lower costs, and improve performance.

The purpose is simple but powerful:

• • Understand current energy use and system performance
  • Identify inefficiencies and opportunities for improvement
  • Estimate potential energy, cost, and emissions savings
  • Provide a clear roadmap for future action

Because ASHRAE audits follow a nationally recognized framework, they are widely accepted by utilities, funding agencies, and internal decision‑makers alike.

What are the different levels of ASHRAE audits

ASHRAE has established three levels of energy audits, each offering a progressively deeper analysis and increasing accuracy. Most audits and many improvements require little to no operational downtime. These levels allow building owners to select the appropriate scope based on their goals, timelines, and investment plans.

Level 1: Walk‑Through Audit

A fast, low‑cost review designed to find obvious opportunities with minimal data collection. It is best suited for early‑stage evaluations or facilities beginning their energy efficiency journey.

It typically includes a site visit and a review of utility consumption data to highlight broad energy use patterns and operational inefficiencies.

A Level 1 Audit is best for initial evaluations, portfolio screening, or facilities new to energy audits.

Level 2: Energy Survey and Analysis

A more analytical approach that evaluates how building systems operate and interact. The results include reliable cost, and savings estimates that can directly support project implementation decisions.

This level provides quantified energy savings, implementation costs, and practical recommendations suitable for financial planning and incentive applications.

A Level 2 Audit is best for prioritizing projects and planning medium‑term improvements.

Level 3: Detailed (Investment‑Grade) Analysis

A full engineering study that minimizes financial and technical uncertainty. This level is typically used to justify large capital expenditures, secure funding, or finalize designs for major energy infrastructure upgrades.

It delivers high‑confidence projections for energy savings, costs, and technical risks, supporting informed decision‑making for major upgrades or system replacements.

A Level 3 Audit is best for capital planning, financing, and long‑term infrastructure upgrades.

What are the differences between the levels

While scope and effort increase at each level, the real difference lies in decision confidence.

• • Level 1 helps identify where opportunities exist
  • Level 2 helps determine which projects to pursue first
  • Level 3 supports decisions involving significant capital and risk

Selecting the right level ensures the analysis matches the decisions being made, avoiding both under‑analysis and unnecessary complexity.

How to choose which level is needed vs other assessments?

The right ASHRAE audit depends on your goals and where you are in your energy efficiency journey. It is best to do an audit before major equipment replacements, capital commitments, or sustainability planning — so decisions are informed, not reactive.

Level 1 is ideal for organizations new to energy audits, offering a quick overview and a broad list of efficiency opportunities. It helps establish a baseline and identify which areas deserve further investigation.

Level 2 is best when specific projects are already identified, providing detailed savings and cost estimates to support decision‑making. This level enables prioritization of projects and supports budgeting and utility incentive applications.

Level 3 is recommended for large, capital‑intensive projects, delivering high‑accuracy analysis of savings, costs, and payback. It reduces financial and technical risk when making long‑term investment decisions.

Other assessments (such as targeted studies or retro‑commissioning) can complement ASHRAE audits, but ASHRAE levels provide a standardized framework that aligns technical rigor with decision risk.

How have the changes in ASHRAE 90.1 standards affected the audits?

As ASHRAE 90.1 has become more stringent over time, the baseline for energy efficiency has increased, changing how savings are identified in audits and assessments. Many measures that once delivered savings are now code minimum, pushing audits to focus more on system optimization, controls, and advanced efficiency strategies. As a result, modern audits are more data‑driven and closely tied to current code expectations and long‑term energy planning. Modern audits reflect this shift by emphasizing optimization, controls strategy, and long‑term performance rather than simple equipment replacement.

What is the benefit of doing an ASHRAE audit?

An ASHRAE audit provides a structured, credible way to understand how a facility is truly performing and where improvements will deliver real value.

Key benefits include:

• • Stronger long‑term energy planning with a clear roadmap for upgrades, investments, and sustainability goals
  • Reduced energy and operating costs through identified efficiency and improved operation, controls, and equipment optimization
  • Improved comfort, reliability, and system performance by addressing root operational issues

• • Support for incentives, rebates, and grants by meeting utility and program documentation requirements

• • Better capital planning with clear guidance on what to address now, later, or not at all
  • Stronger support for sustainability, ESG, and emissions‑reduction goals using defensible data

Next Steps After an ASHRAE Audit

A well‑executed ASHRAE audit sets the foundation for action rather than ending with a report. After completing an ASHRAE audit, most facilities can expect clear direction and actionable next steps, including:

• • Review and prioritize recommendations, starting with no‑ and low‑cost measures to capture immediate efficiency gains and incentives, while laying the groundwork for larger capital projects.
  • Clear cost, energy‑savings, and payback expectations to support decision‑making
  • A phased implementation roadmap, aligned with budgets and facility priorities
  • Documentation to support utility incentives, rebates, and grant applications

• • Track energy savings and system performance over time, using data to verify results and support continuous improvement

From there, organizations can move forward at their own pace, implementing near‑term improvements, planning for future capital projects, and using the audit as a reference point for ongoing energy and facility strategy. As consultants, we can help you take the next steps after an audit and ensure improvements are executed at a pace that meets your specific needs and goals.

Real‑World Observations from the Field

Nishan Adhikari, Engineer with Energy Sciences, shares what he has learned during his time performing ASHRAE audits.

From my experience conducting ASHRAE Level 1, 2, and 3 audits, one thing becomes clear very quickly: buildings rarely operate exactly as they were designed.

Over time, systems evolve. Control sequences are adjusted to address comfort issues, schedules are changed as occupancy patterns shift, and equipment continues running to support uses that no longer exist. These changes are understandable, but they often happen informally and without documentation. An ASHRAE assessment brings those realities to the surface and helps reconnect intent with actual operation.

I also consistently see that operational improvements can deliver some of the most immediate and reliable savings. While equipment upgrades tend to draw the most attention, many of the strongest early wins come from optimizing controls, correcting scheduling issues, and resolving coordination gaps between systems. These opportunities are easy to overlook without spending time in the field and engaging directly with facility staff.

One anonymized example stands out: during a Level 2 audit of a mid‑size industrial facility, the initial assumption was that aging HVAC equipment was the primary efficiency issue. However, after reviewing control sequences and talking with operations staff, we discovered that large portions of the system were running 24/7 to support processes that had been relocated years earlier. By correcting schedules and sequencing, without replacing equipment, the facility achieved meaningful energy savings with minimal capital investment and a very short payback.

Finally, I have found that one of the most valuable outcomes of an ASHRAE audit is clarity. In several cases, the assessment confirmed that certain capital projects could be deferred or avoided altogether. Knowing what not to pursue can be just as important as identifying new opportunities, allowing organizations to move forward with stronger alignment, fewer assumptions, and greater confidence in their long‑term plans.

From Assessment to Strategic Action

An ASHRAE assessment establishes a clear, data‑driven foundation for energy and cost reduction. At Energy Sciences, we build on that foundation by serving as a long‑term resource — actively monitoring evolving funding, incentive, and grant opportunities and aligning them with your priorities. This approach helps leadership move forward strategically, capture available financial support, and advance projects with greater confidence and minimal capital risk.

Beyond completing assessments, we can be that resource for you — helping connect audit findings to available funding, implementation timing, and long‑term energy and sustainability goals.

Our goal is to support informed, strategic decisions that drive measurable results today while preparing facilities for the future.

Co-Written by Nishan Adhikari and Bibek Prajapati