Energy Auditing and Business Case Analysis (BCA)
Energy Auditing and Business Case Analysis (BCA)
Data-Driven Decision Making for Facilities
Before investing in new equipment, public entities need objective data. Upgrading HVAC or lighting systems based on guesswork can lead to improperly sized equipment, missed savings opportunities, and poor return on investment.
E3 provides comprehensive, professional energy auditing services—culminating in an Investment Grade Audit (IGA) and a board-ready Business Case Analysis (BCA). We compile utility bill histories, equipment inventories, and operational patterns to design a customized energy program that guarantees savings.
Our Energy Auditing Process
1. Free Preliminary Energy Study (PES) E3 conducts an initial, high-level facility review at no cost to you:
- We analyze 12 to 24 months of utility bills to establish an energy use intensity (EUI) baseline.
- We perform a visual walkthrough of your facilities to catalog major equipment age and condition.
- We provide a preliminary report detailing potential energy conservation measures (ECMs) and estimated savings to see if a full project is viable.
2. ASHRAE Level I, II, and III Audits Depending on project needs, our certified energy managers (CEMs) perform detailed audits:
- ASHRAE Level I (Walk-Through Analysis)
Identifying low-cost/no-cost operational savings. - ASHRAE Level II (Energy Survey and Engineering Analysis)
Performing detailed energy calculations, modeling building usage, and evaluating mechanical upgrades. - ASHRAE Level III / Investment Grade Audit (IGA)
A highly detailed engineering study including continuous data logging, capital cost estimates, and precise energy models. The IGA serves as the financial foundation for an Energy Savings Performance Contract.
3. Utility Bill Regression Analysis We normalize your historical utility billing data against local weather patterns (heating and cooling degree days) using specialized energy modeling software. This ensures that energy savings calculations are accurate and accounts for variations in Texas weather from year to year.
4. Board-Ready Business Case Analysis (BCA) We translate engineering data into clear, financial metrics for your board of trustees or city council:
- Itemized Capital Costs
Transparent pricing with a guaranteed maximum project cost. - Annual Energy and Maintenance Savings
Documented energy and operational cost reductions. - Lifecycle Cost Analysis (LCCA)
Comparing the cost of keeping old equipment versus upgrading. - Simple Payback and Net Present Value (NPV) Calculations.
Sizing and Engineering Integrity
As a Design-Build firm, E3’s engineers take complete responsibility for the audit’s accuracy:
- Precise Equipment Sizing
We size mechanical equipment using actual load profiles, preventing the efficiency losses of over-sized systems. - No Change Orders
Our audit pricing is fixed and guaranteed. If we discover physical installation hurdles during construction that were missed in our audit, E3 covers the cost, not the client.
Frequently Asked Questions
Frequently Asked Questions
What is an Investment Grade Audit (IGA)?
An Investment Grade Audit (often an ASHRAE Level III audit) is a comprehensive engineering and financial analysis of a facility’s energy performance. It uses extensive data logging and energy modeling to provide the rigorous technical data required to guarantee energy savings in a performance contract.
How is a Business Case Analysis (BCA) different from an IGA?
While an IGA focuses on technical data, precise equipment sizing, and engineering accuracy, the Business Case Analysis translates that data into a board-ready financial document. The BCA highlights ROI, net present value, capital costs, and guaranteed savings to help stakeholders make informed investment decisions.
Why is an IGA necessary before upgrading facility equipment?
Upgrading systems without an IGA often leads to improperly sized equipment and missed savings opportunities. An IGA provides objective data, minimizes financial risk, ensures correct equipment sizing based on actual load profiles, and establishes the performance baseline needed for guaranteed energy savings.
What happens if unexpected costs arise during construction?
Under E3’s Design-Build and IGA process, audit pricing is fixed and guaranteed. If unforeseen physical installation hurdles emerge during construction that were missed during the auditing phase, E3 covers the cost, eliminating change orders for the client.