Investment-Grade Audits Determine ROI

By Greg Livengood and Mark Stavig  
OTHER PARTS OF THIS ARTICLEPt. 1: Preliminary and Third-Party Audits Reveal Energy WastePt. 2: General Energy Audits Collect Long-Range DataPt. 3: This PagePt. 4: How Can Managers Avoid Energy-Audit Failure?

An investment-grade audit is the most detailed energy audit. It analyzes the financial aspects of energy savings and the return on investment from potential changes or upgrades. A building operator typically uses the investment-grade audit as a budgeting tool when planning facility upgrades.

This audit finalizes the modeling performed during a general audit and combines the information gathered with monetary figures. Life-cycle cost analyses can determine the long-term cost savings associated with installing a new boiler, energy-saving windows, or fluorescent lighting, for example.

For significant energy upgrades, a manager might choose to contract with an energy-services company to perform the audit, as well as design and build energy-conservation measures. Sometimes, the energy-services company can even guarantee the energy savings.

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  posted on 10/1/2008   Article Use Policy

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