What is an energy audit?
An energy audit is a comprehensive assessment of how energy is used within your premises throughout your operations. The goal of an energy audit is to identify where, when, and how energy is consumed with the ultimate objective of reducing energy usage where applicable to save costs. Although often overlooked by smaller businesses, energy audits are an effective tool for reducing energy-related operating costs. Here is a step-by-step overview of how an energy audit works:
- Initial Consultation: The process begins with an initial consultation where you discuss your energy usage, goals, and any specific concerns with the energy auditor.
- Data Collection: The auditor will collect data on your energy consumption by reviewing utility bills, energy usage patterns, and existing equipment. This helps establish a baseline for your energy use.
- Site Inspection: The auditor will conduct a walk-through of your premises to inspect lighting, heating, cooling, ventilation systems, and the building envelope (walls, roof, windows, and doors). They will look for areas where energy efficiency can be improved.
- Energy Analysis: Using the collected data and observations from the site inspection, the auditor will analyze your energy consumption and identify opportunities for improvement. This may include comparing your energy performance to industry benchmarks.
- Identifying Opportunities: The auditor will identify specific energy-saving opportunities, such as upgrading to energy-efficient lighting, improving insulation, optimizing HVAC systems, and implementing energy management practices.
- Cost-Benefit Analysis: The auditor will provide a cost-benefit analysis of the recommended improvements, including the potential energy savings, costs of implementation, and payback periods.
- Report and Recommendations: After the analysis, the auditor will compile a detailed report outlining their findings and recommendations. This report will include actionable steps you can take to improve energy efficiency and reduce greenhouse gas emissions.
- Implementation Plan: Based on the recommendations, you can develop an implementation plan to prioritize and execute the suggested improvements. This may involve working with contractors or suppliers to carry out the upgrades.
- Monitoring and Verification: After implementing the recommended changes, it’s important to monitor your energy consumption to verify the effectiveness of the improvements. Regular monitoring can help ensure that you continue to achieve energy savings over time.
How much do energy audits cost?
The cost of an energy audit for a small Canadian business can vary depending on the size of the premises and the complexity of the audit. Generally, you can expect the following price ranges:
- Basic Energy Audit: Typically costs between $1,500 and $5,000. This includes a review of utility bills, a site inspection, and basic recommendations for energy-saving measures.
- Comprehensive Energy Audit: More detailed audits can range from $5,000 to $15,000. These audits include in-depth analysis, detailed recommendations, and a cost-benefit analysis of proposed improvements.
- Specialized Audits: For businesses with specific needs or larger premises, the cost can exceed $15,000. These audits may involve advanced diagnostics, such as thermal imaging and detailed energy modeling.
While the upfront cost of an energy audit might seem significant, the potential savings from implementing the recommended energy efficiency measures can often outweigh the initial investment. Additionally, many provinces offer incentives and rebates that can help offset the cost of the audit and subsequent improvements.
Financial incentive programs
Here are some incentives available in each Canadian province and territory to help cover the costs of an energy audit.
| Province | Resource | Details |
| Alberta | Clean Energy Improvement Program https://ceip.abmunis.ca/commercial/
Energy Efficiency Programs, Utilities Consumer Advocate https://ucahelps.alberta.ca/tips/energy-efficiency-programs/ Emissions Reductions Alberta | Energy Efficiency Programs |
Provides financing up to 100% of project costs for energy efficiency and renewable energy upgrades, including audits. Availability is dependent on municipality.
Utilities Consumer Advocate provides services and referrals to energy efficiency programs, including energy audits, in Alberta. Emissions Reductions Alberta offers several programs and funding opportunities for manufacturers looking to improve their energy efficiency. |
| British Columbia | CleanBC Better Buildings Program
BC Hydro Power smart Program |
Provides financing for energy efficiency and renewable energy-efficient upgrades for commercial building projects in new or renovating stages.
BC Hydro provides funding for energy efficiency projects for businesses that use less than 2 gigawatt-hours of electricity per year. |
| Manitoba | Efficiency Manitoba | Offers various programs, including a Commercial Energy Audit program that provides technical and financial support for level 2 or 3 energy audits. |
| New Brunswick | Efficiency New Brunswick | Efficiency New Brunswick offers a stream of services to help business conserve energy, including the Business Rebate Program and the Commercial Building Retrofit Program, which can cover energy audit costs. As well, a free on-site energy audit is offered as a starting point for businesses looking to qualify for support. |
| Newfoundland and Labrador | Take-charge Business Efficiency Program | Provides financial incentives for qualifying businesses to conduct energy audits and invest in energy-efficient upgrades. |
| Nova Scotia | Efficiency Nova Scotia | Provides financial incentives and rebate programs for SMEs looking to save on energy costs through its Small Business Energy Solutions Program. |
| Ontario | Save on Energy Small Business Program
https://saveonenergy.ca/en/For-Your-Small-Business/Programs-and-Incentives/Small-Business-Program Enbridge Gas Audits, Studies and Assessments https://www.enbridgegas.com/ontario/business-industrial/incentives-conservation Independent System Operator Energy Efficiency Programs for Business https://www.ieso.ca/en/Get-Involved/Energy-Efficiency/Energy-Efficiency-for-Business |
Supports businesses with 50 or fewer employees, offering incentives and energy efficiency upgrades, including an on-site audit by an energy saving expert.
Enbridge Gas offers various commercial energy assessments at reduced cost for businesses. The Independent System Operator of Ontario offers financial support for businesses in Ontario looking to improve their energy efficiency. |
| Prince Edward Island | Strategic Energy Solutions for Business, Commercial and Community Buildings
Business Energy Rebates Program https://www.princeedwardisland.ca/en/service/business-energy-rebate-online-application |
Provides rebates, incentives and energy efficiency solutions for businesses, community centres, and agricultural operations, including a free energy audit upon application.
The Business Energy Rebate Program provides rebates for businesses for energy efficient products. |
| Quebec | Hydro-Quebec: Efficiency Solutions Program
https://www.hydroquebec.com/business/energy-savings-business Government of Quebec: EcoPerformance Program |
The ECO Performance Program offers rebates, financial support and incentives for Quebec-based SMEs looking to save on energy, including energy analyses. Other programs are offered through Hydro-Quebec and Energir for natural gas customers. |
| Saskatchewan | SaskPower and SaskEnergy, Home Efficiency Retrofit Rebate
https://www.saskpower.com/power-savings-and-programs/home/programs/home-efficiency-retrofit-rebate Sask Power: Commercial Energy Optimization Program (CEOP) |
SaskPower and SaskEnergy offer the Home Efficiency Retrofit Rebate, which includes a subsidy to cover the cost of pre- and post-upgrade EnerGuide evaluations. |
| Yukon | Good Energy Program | Provides rebates for energy efficient appliances and renewable energy installations, including energy audits. |
| Northwest Territories | Arctic Energy Alliance | Incentives for energy audits and energy efficiency upgrades to commercial buildings. |