160 Energy Project Financing: Resources and Strategies for Success
so that it is not hampered with the negative connotation of an audit in
the sense of an IRS “audit.” The energy audit is a positive experience
with significant benefits to the business or individual, and the term
“audit” should be avoided if it clearly produces a negative image in
the mind of a particular business or individual.
ENERGY AUDITING SERVICES
Energy audits are performed by several different groups. Electric
and gas utilities throughout the country offer free residential energy
audits. A utility’s residential energy auditors analyze the monthly bills,
inspect the construction of the dwelling unit, and inspect all of the
energy-consuming appliances in a house or an apartment. Ceiling and
wall insulation is measured, ducts are inspected, appliances such as
heaters, air conditioners, water heaters, refrigerators, and freezers are
examined, and the lighting system is checked.
Some utilities also perform audits for their industrial and commer-
cial customers. They have professional engineers on their staff to perform
the detailed audits needed by companies with complex process equip-
ment and operations. When utilities offer free or low-cost energy audits
for commercial customers, they usually provide only walk-through au-
dits rather than detailed audits. Even so, they generally consider lighting,
HVAC systems, water heating, insulation and some motors.
Large commercial or industrial customers may hire an engineering
consulting firm to perform a complete energy audit. Other companies
may elect to hire an energy manager or set up an energy management
team whose job is to conduct periodic audits and to keep up with the
available energy efficiency technology.
The U.S. Department of Energy (U.S. DOE) funds a program where
universities around the country operate industrial assessment centers
that perform free energy audits for small and medium sized manufac-
turing companies. There are currently 26 IACs funded by the Industrial
Division of the U.S. DOE.
The State Energy Program (SEP) is another energy audit service
funded by the U.S. Department of Energy. It is administered through
state energy offices. This program pays for audits of schools, hospitals,
and other institutions, and has some funding assistance for energy
conservation improvements.