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Energy Audit Types Explained: From Virtual to ASHRAE Level III

April 3, 2026 · Alert Energy Team

Not all energy audits are created equal. The term “energy audit” gets thrown around loosely, but there are actually distinct levels of assessment, each with a different scope, cost, and level of detail. Here is a breakdown of what each type involves and when it makes sense.

Virtual or Remote Energy Audit

A virtual audit uses your building’s existing data (utility bills, meter readings, BAS data) to diagnose issues without anyone visiting the site. This is a great starting point because it can identify red flags, unusual consumption patterns, and areas worth investigating before committing to an on-site visit.

Virtual audits are especially useful for:

  • Portfolio owners screening multiple buildings to prioritize which ones need attention
  • Buildings in remote locations where site visits are expensive
  • Getting a quick initial assessment before deciding on a deeper audit

At Alert Energy, we often start with a virtual audit to guide the scope of any follow-up on-site work. This saves our clients time and money by focusing on-site efforts where they will have the most impact.

ASHRAE Level I: Walk-Through Analysis

A Level I audit involves a brief on-site visit combined with a review of utility bills and building characteristics. The goal is to identify low-cost and no-cost energy saving opportunities and to flag areas that warrant deeper investigation.

What you get:

  • A summary of your building’s energy use patterns
  • Identification of obvious inefficiencies
  • Rough estimates of potential savings
  • Recommendations for operational improvements

A Level I audit is typically done in a single day and produces a concise report. It is a good fit if you want a quick health check on your building without a major investment.

ASHRAE Level II: Energy Survey and Analysis

A Level II audit is more detailed. It includes everything in a Level I plus a deeper analysis of specific systems (HVAC, lighting, envelope, controls) with calculated savings estimates and payback periods for each recommendation.

What you get:

  • Detailed analysis of major building systems
  • Specific energy conservation measures (ECMs) with cost estimates
  • Financial analysis including payback period and ROI for each measure
  • Prioritized list of recommended improvements

This is the most common audit level for commercial buildings considering capital improvements. It provides enough detail to make informed investment decisions.

ASHRAE Level III: Detailed Analysis of Capital-Intensive Modifications

A Level III audit focuses on specific, high-cost measures identified in a Level II audit. It involves detailed engineering analysis, energy modeling, and sometimes sub-metering to precisely quantify savings potential.

This level is typically reserved for:

  • Major mechanical system replacements
  • Building envelope upgrades
  • Projects requiring detailed financial justification for investors or lenders

Which level does your building need?

The right level depends on your goals:

  • Just need a quick check? Start with a virtual audit or Level I.
  • Planning upgrades and need to justify the budget? Level II gives you the financial analysis.
  • Considering a major capital project? Level III provides the engineering detail.

We often recommend starting with a virtual audit and moving to deeper levels only where the data points to real opportunities. This keeps costs proportional to potential savings.

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