Level 2 Energy Audit

After a Level I Energy Audit is completed in the form of a simple walk-through process resulting in a preliminary, high-level analysis of energy use and an understanding of the building’s configuration, a Level II audit commences with the findings of the Level I audit.  An ASHRAE Level II audit is the minimum level of audit required to comply with the Local Law 87 legislation.

The Level II audit, which provides a more in-depth study of capital intensive energy-using components, starts with the evaluation of building base systems such as the HVAC (heating, ventilation and air-conditioning), domestic hot water (DHW), plug loads, lighting, building envelope and controllers.  It will provide a detailed analysis of energy consumption, base loads and seasonal variations in energy usage for different buildings types (multifamily vs. commercial). The process also involves detailed discussions with the building managers and supervisors, owners as well as the occupants. The result is a thorough study of the building’s ventilation, lighting, air quality, temperature, air flow, humidity and other conditions that have an impact on energy consumption and occupant comfort. 

In addition to identifying measures for energy-efficient improvement with quicker paybacks, a Level II audit also incorporates a financial analysis in the form of a simple payback analysis (i.e. the time taken to recoup the investment). Many of the energy conservation measures (ECMs) identified through a Level II audit have a short payback period that ranges between 2-3 years. This means that the measures can be implemented quickly and with immediate returns in the form of cost or energy savings to property owners. For other complex ECMs that take longer to implement and guarantee higher benefits, a Level III audit is required.

The result of a Level II audit is compiled in a detailed audit report documenting all proposed energy efficiency measures (EEMs) including low-cost to no-cost measures, building system improvements, systems control modifications, potential capital improvements and potential energy savings realized through their implementation. The report includes financial data for each ECM proposed including payback analysis, energy cost data and savings potential. We also provide an ROI (return on investment) analysis and annual cash flow analysis.

A level II audit should also include a list of applicable incentives available to reduce the cost of energy efficient improvements implemented post-audit. At Associated Renewable, our Energy Solutions team will conduct due diligence on incentives for audit customers and assist them in filing their applications. Associated Renewable is a pre-approved Market Partner in Con Edison’s Commercial & Industrial Energy Efficiency Program, which allows access to grants that pay up to 50% of project costs, capped at $67,000, and help reduce the sticker price of these energy efficiency projects. Contact our team for a free consultation on Local Law 87 compliance for your property.

The highlights of a Level II Audit are summarized below:

  • Past year utility bill analysis
  • Building benchmarking (comparing with the stock of similar buildings)
  • Analysis of building base systems
  • Breakdown of energy use
  • Outlining low-cost to no-cost ECMs


To learn how a Level II audit is different from a Level III audit, please visit the section on Level II vs. Level III audits.