Term

Energy audit

A systematic analysis of energy use in a business, its buildings and processes, with proposed savings measures and their payback. Large companies must carry one out regularly unless they have an energy management system in place.

Updated

What it means

An energy audit is a systematic analysis of energy use in a business, its buildings, technologies and processes, with proposed savings measures and their payback. The result is a report showing where energy is lost and which investments pay off best.

Large companies and companies with high energy consumption must carry out an audit regularly, usually every four years, unless they have a certified energy management system. Only a qualified person registered on the relevant list may carry it out.

An audit differs from an energy performance certificate, which only rates a building by its energy needs. The audit also covers production processes, transport, lighting or compressed air and looks for savings across the whole operation, not just the building envelope.

How it works in practice

An audit starts with collecting consumption data for recent years, energy bills and equipment data. Then come a site visit, measurements and calculations, and the report lists measures with estimated costs, savings and payback, such as new lighting, heat recovery or solar panels.

Audit results often support applications for grants from EU funds or the recovery plan and for green loans. Banks and funders require proof of savings, which the audit quantifies before and after implementation.

For ESG reporting and calculating the carbon footprint, the audit provides reliable energy consumption data by source. Companies aiming for carbon neutrality usually start here, as saving energy is the cheapest route to lower emissions.

What to watch out for

A company that is obliged to carry out an audit and fails to do so risks a fine. Nor does a general recommendation from a technology supplier keen to sell a particular solution count as an audit, so an independent auditor is the better choice.

An audit only makes sense if its recommendations are implemented. Many companies leave the report in a drawer. It pays to appoint a responsible person, a budget and a timetable at least for the measures with the shortest payback, and to review results regularly.

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