Everything You Wanted to Know About Energy Audits of Multifamily Buildings…But Were Afraid to Ask
By Caitlin Jones
6 min read
Tax Credit Advisor, July 2009: From measuring energy usage and revealing ways to cut costs, to providing entry to a myriad of possible governmental and private incentives, the energy audit is becoming an increasingly important tool for owners, developers, and managers of affordable multifamily rental housing properties.
In recent interviews, two experts in energy audits of multifamily residential buildings provided details about energy audits: Jeffrey Perlman, President and Founder, Bright Power, Inc., New York, NY; and Andrew Padian, Vice President for Energy Initiatives, The Community Preservation Corporation, New York, NY. Perlman is a LEED-accredited green building professional and Certified Energy Manager. Padian has 30 years’ experience in multifamily housing and has completed thousands of energy audits.
Q. What is an energy audit?
A. Padian: An analysis of a building’s energy and water usage and how that usage and/or energy costs can effectively be reduced while preserving the health, safety, durability, and comfort of the building.
Q. Why are the benefits to an owner/developer of an energy audit of their existing multifamily building?
A. Padian: Multifamily buildings use two to five times more energy per square foot than single-family homes. By performing an energy audit, a third party can evaluate the building and tell the owner – you should do these things to cut your energy. It’s the true definition of green – cash.
Most buildings are very wasteful. A building owner who acts on the recommendations in an energy audit can expect savings of 20 to 40 percent.
Q. What is done in an energy audit?
A. Perlman: There are two main activities. Off-site: An analysis of the site’s energy bills followed by a written report of the findings. On-site: A walk-through of the property and the performance of various tests of the building’s systems.
Q. What are the technical steps?
A. Perlman: Step 1 is benchmarking: Evaluating the building’s current performance using historical utility bills. Step 2 is the audit: Assessing the building’s systems for efficiency opportunities, making an on-site visit, and then writing the audit report.
Q. What is measured in an energy audit?
A. Padian: All of the energy usage is analyzed with respect to the dimensions of the building, including ceiling heights, the number and sizes of windows, existing insulation, basement issues, and existing energy-related equipment in the building. Perlman: We also analyze the sizes and number of doors, thickness of walls, places where air is leaking out of the building, the efficiency of the furnace and/or cooling systems, the type of lighting, and water usage.
Q. What is the equipment used?
A. Perlman: Various thermometers; blower door to measure air leakage; combustion analyzer; light meter; ballast checker for fluorescent lighting; smoke stick to diagnose air leakage paths; anemometer to measure speed of airflow from ducks and fans; and psychomotor to measure humidity.
Q. Are there different levels of energy audits?
A. Padian: There is the simple energy audit, consisting of the analysis of utility bills and energy usage, site walk-through, and report. Then there are audits conforming to American Society of Heating, Refrigeration and Air Conditioning Engineers (ASHRAE) standards, where you actually develop energy models.
Perlman: There are three levels of ASHRAE audits: Level 1 (walk-through); Level 2 (preliminary scoping study); and Level 3 (investment grade audit).
Q. What is the end product of an energy audit?
A. Padian: If the findings of the audit are acted upon, the building owner can achieve 20 to 40 percent in energy savings. The savings-to-investment ratio is greater for items that have a longer lifetime. Paybacks are looked at both in years and savings/investment ratios.
Q. What happens after the energy audit is done?
A. Padian: It’s up to the owner receiving the energy audit report whether to implement the recommended improvements.
Q. Who performs an energy audit?
A. Perlman: Anyone who is qualified. There are a few useful professional certifications for energy auditors. The Building Performance Institute (BPI) offers a certification; another certification is Certified Energy Manager (CEM). Some engineers such as mechanical, civil, electrical, etc. are good. Padian: A good engineer or architect with a proven track record working in multifamily might be a good candidate. But beware: Few engineers want to do audits of multifamily buildings or understand the peculiar nature of these buildings. If you select an engineer, be sure that he or she has experience with multifamily buildings.
Q. How does one select a qualified energy auditor or energy audit firm? Are there lists somewhere?
A. Perlman: Use references first. Certifications can be helpful, but they aren’t an indicator of quality. There isn’t any single list; different states keep different lists. Padian: Don’t hire any firm that has a vested interest in a product or a service like window or siding companies.
Q. What is the typical dollar cost of an energy audit for a multifamily rental building of, say 100 units?
A. Padian: Under $5,000 for a typical walk-through audit. For ASHRAE-level reports, add another $10,000 to $15,000.
Q. What factors determine the cost of an audit?
A. Perlman: The size and number of buildings in the project, the complexity of the building systems – keep in mind that the audit will cover all of the key basic elements, such as heating, cooling, electrical usage, water usage, insulation, basement issues, etc.
Q. How long does it take to perform an energy audit?
A. Perlman: About two to four weeks to gather billing data and information and do the site visit, and another two to four weeks to develop the written report.
Q. How is an energy audit typically paid for?
A. Perlman: One of three ways:By the owner or developer; by a government incentive program such as those of a state or the U.S. Department of Housing and Urban Development; or by a utility company.
Q. Are there governmental funds or subsidies to pay for some or all of the costs of an energy audit?
A. Perlman: In the HUD green affordable housing initiatives, the audit is paid for by HUD; Enterprise Community Partners will cover energy audit costs for some of the properties they fund; and certain state and utility programs cover all or part of the cost. Padian: Incentives vary regionally. The best source of information on state-by-state incentives is at http://www.dsireusa.org. One HUD initiative is targeted at the Section 8 portfolio, specifically properties in the Mark-to-Market Program. This nationwide pilot initiative encourages owners and purchasers of affordable multifamily properties to rehabilitate and operate their properties using sustainable green building principles.
– James T. Berger
