In this article
- What an energy audit is and why it is not a luxury
- What the audit actually checks — the six consumption arenas
- How an energy audit is carried out — the four stages
- The common findings — what almost always comes up
- The hierarchy of opportunities — not every finding is born equal
- Who carries out an energy audit and what is expected of them
- Energy audit, standards and ESG — the broader context
- What to do with the findings — from audit to action plan
- Bottom line for the building manager
- Frequently asked questions
Most owners of office buildings know that the electricity bill is high — but few know exactly where the energy goes. An energy audit is the tool that turns this feeling into a measured picture: where energy is burned, where it is wasted, and what can be done at each spot. As a building manager who has carried out audits in various buildings — from a twenty-year-old office building with no control system to a relatively new building with a misconfigured BMS — I can put it simply: without measuring, you cannot manage. And without managing, you cannot save.
What an energy audit is and why it is not a luxury
An energy audit is a systematic examination of how the building consumes energy — mainly electricity, and sometimes also fuel for the generator and hot water. Its purpose is to identify where consumption happens, how much, when, and whether the consumption is justified or wasteful. Contrary to the common image, an energy audit is not a "green report" to hang on the wall — it is an engineering-operational document that leads to immediate budgetary and operational decisions.
In Israeli management culture, it is customary to act only when an external party requires it — a regulator, an audit, or an incident. An energy audit breaks this logic, because it pays off even without anyone requiring it: energy is one of the largest operating expenses of an office building, and every reduction in consumption returns directly to the bottom line — year after year. In my experience, the first findings of almost every audit I carried out yielded savings that covered the cost of the audit itself within a few months, before we even reached any investment recommendation. A building managed by data costs less to run — this is not a slogan, it is simple arithmetic.
What the audit actually checks — the six consumption arenas
A comprehensive energy audit breaks down the building's consumption by system and examines each of them separately. In Israeli office buildings, the following six arenas are the full consumption map:
- Air conditioning: usually the largest consumer in an office building — in Israel, with summer heat peaks, the cooling load can reach a dominant share of the bill. The audit checks the efficiency of the chillers and air units (actual COP versus rated), operating hours, setpoints — to how many degrees the cooling is set — and the logic of the air conditioning control by schedule and by zone.
- Lighting: the type of fixtures (old fluorescent lamps versus LED), total power, hours of operation, and use of smart control — presence sensors, daylight utilization and timers. In older office buildings, old lighting is one of the most accessible potentials for quick savings.
- Building envelope: insulation, windows, shading and sealing — everything that affects the air conditioning "load." In a building with an unshaded glass facade facing west, the air conditioning will work much harder in the afternoon hours. Identifying the problematic interfaces makes it possible to treat the cause and not just the symptom.
- Auxiliary systems: elevators, water pumps, fans, an air-pressure system and server rooms — consumers that tend to slip from awareness but add up. A server room that is not thermally arranged properly can be an enormous consumer.
- Base consumption during off-peak hours: how much the building consumes when it is "off" — at night and on weekends. High base consumption is a classic red flag. From personal experience: in one building I examined, consumption between midnight and six in the morning was unreasonably higher than expected. The cause was revealed only in the physical audit — a main air conditioner that stayed active because of a control fault that no one knew about.
- The electricity contract and tariffs: whether the tariff structure (TOU — Time-of-Use tariff, offered to large consumers by the Israel Electric Corporation) matches the building's real consumption profile. Sometimes switching between tariff tracks yields savings without touching the equipment at all.
The air conditioning system almost always leads the building's consumption, and so it also holds the greatest potential. We expanded on this in HVAC maintenance in office buildings.
How an energy audit is carried out — the four stages
Stage 1 — collecting historical data
The starting point is the electricity bills of the last 12 to 24 months. From them a consumption profile is built: seasonality, demand peaks, base consumption, and the ratio between peak hours and off-peak hours. Already at this stage, before anyone sets foot in the building, patterns are revealed — such as a building that consumes at night almost as much as during the day, or a monthly demand peak that does not match the declared occupancy. Invoices from fuel suppliers for the generator also belong here.
Stage 2 — a physical field audit
The energy expert goes over the systems physically: visits the machine room, reads control panels, measures power levels, examines air conditioning and lighting settings, and locates visible waste — systems running unnecessarily, illogical setpoints, old and inefficient equipment. The physical audit is also an opportunity to interview the operations staff: they often know exactly what is broken, no one has simply asked them.
Stage 3 — measurement and logging
In a thorough audit, temporary power meters are installed on central circuits, collecting data over days or weeks. This shows the real consumption over time — not a snapshot — including nighttime and weekend behavior. In a building with a building management system (BMS), a significant portion of the data is already recorded and allows for faster analysis; we expanded on this in the guide to building management systems.
Stage 4 — analysis, benchmark and recommendations
The decisive stage: cross-referencing all the data into a list of efficiency opportunities, ranked by potential savings, execution complexity, and implementation cost. A good audit also includes a benchmark — comparing the building's performance to similar buildings in size and use — in order to gauge the realistic potential. Here the audit turns from a descriptive document into an action plan with numbers.
The common findings — what almost always comes up
After carrying out audits in various buildings, there are findings that recur again and again. Most of them do not require a large capital investment — they are operational problems that have accumulated over time:
- Air conditioning running outside working hours: a system that keeps cooling empty floors in the evening and on the weekend. Pure waste, fixed by adjusting the schedule — sometimes a change that takes fifteen minutes and yields immediate savings.
- Aggressive setpoints: cooling to 21 degrees Celsius instead of 24 raises consumption significantly with no real benefit to users — and sometimes causes complaints about "cold" that no one addresses. Changing the setpoint to a real pace is a classic finding.
- Old and uncontrolled lighting: fluorescent fixtures that stay on even in empty spaces around the clock. One of the most accessible savings domains, with a quick return after replacing fixtures with LED and installing presence sensors.
- High base consumption at night: equipment that stays on, auxiliary systems running unnecessarily, or equipment in "standby mode" consuming more than is commonly thought. A generator left running unnecessarily is an example I have encountered.
- Clogged filters and poor maintenance: a neglected system consumes more electricity to deliver the same performance — the link between maintenance and energy is direct and measurable. This is one of the reasons an energy audit and preventive maintenance are two sides of the same coin.
- An unsuitable electricity contract: a consumption profile that does not match the current tariff structure. Changing tariff track with the Israel Electric Corporation can reduce the bill without touching the equipment at all.
- Server rooms without thermal management: a server room not properly designed thermally, with cooling managed "on the edge" — a considerable energy consumer that is sometimes entirely forgotten in superficial audits.
Note the pattern: most of the findings are operational-maintenance, not capital. See the annual preventive maintenance checklist for more on the link between maintenance and energy.
The hierarchy of opportunities — not every finding is born equal
The big mistake after an audit is to treat all the findings as equal in value, or — worse — to jump straight to the expensive, shiny investment. A good audit sorts the opportunities into three layers by cost and implementation complexity:
Layer 1 — no cost: operational tuning
Changing air conditioning and lighting schedules, adjusting setpoints, shutting off unnecessary systems during off-peak hours, and matching the electricity contract to the real consumption profile. Immediate return, zero risk. This is always where you start — and here lies sometimes a big surprise: how much you can save without spending a shekel.
Layer 2 — low investment with a quick return
Presence sensors, timers, replacing lighting with LED, spot sealing and insulation at windows and interfaces. The return is quick and measurable. Upgrading lighting to LED is the classic here — we detailed its economics in the return on investment of an LED upgrade.
Layer 3 — capital investment
Replacing chillers with more efficient models, implementing or upgrading a building management system (BMS), or installing a solar system for self-generation. A longer return, but sometimes with a dramatic impact on the cost of operation for years ahead. We examined the logic of self-generation in solar panels for office buildings.
This order is not accidental and is not merely strategic — it is also economic. Every percent saved in Layer 1 reduces the need — and therefore the size of the investment — in the following layers. Whoever installs a solar system before switching off the night lamp that is left burning pays more for energy they are wasting anyway.
Who carries out an energy audit and what is expected of them
An energy audit is carried out by an energy expert or an energy consulting firm. The main requirement I emphasize: the party carrying it out must be independent — that is, they do not sell the equipment they recommend. An audit whose every conclusion leads to a specific vendor's equipment is not an audit — it is a price quote disguised as consulting. Ask any expert up front: do you have a commercial relationship with equipment suppliers?
A proper audit should provide: a clear breakdown of consumption by system, a ranked list of opportunities with an estimate of the savings for each, a reasoned order of priorities for execution, and a measurement baseline — a base-percent point against which comparison can be made after implementation. Without a baseline, you cannot prove that anything improved. This is critical not only for reporting — but also for conversations with tenants, apartment owners and investors.
Another question worth asking before you begin: what are your savings estimates based on — on field measurement of the specific building, or on average manufacturer data? A building is a unique creature: the same chiller model will behave differently in a shaded building versus a sun-exposed one, in dense occupancy versus sparse, and in a coastal climate versus an inland one. Anyone who promises precise savings without measuring your specific building is selling an illusion.
Energy audit, standards and ESG — the broader context
An energy audit is not an isolated action; it fits into a broader framework of responsible property management. Israeli Standard 5281 (green building) defines requirements for the energy performance of buildings and serves as an accepted reference framework even for existing buildings that do not undergo formal certification. Improving the energy consumption index based on the principles of the standard — even without a certificate — is a real added value to the property.
Beyond standards, energy is the heart of the E in ESG. Investors, large corporate tenants and institutional bodies increasingly examine the environmental performance of the properties they rent or finance. A building with a managed, documented and improving energy profile is a more desirable asset and more resilient to market and regulatory changes over time. We expanded on this in ESG for office buildings in Israel.
It is worth noting: even a building that is not officially "marked green" can document the improvement of its performance over time and present it to potential tenants as proof of professional and responsible management. Consistent self-documentation is sometimes worth more than a one-time standards certification.
What to do with the findings — from audit to action plan
This is where most buildings fail, and not out of negligence: the audit is done, the report is received, and then it rests in the drawer. A finding that is not translated into action is worth exactly nothing. The way to turn an audit into a result requires an organized process:
- Prioritizing and deriving tasks: every finding becomes a task with an appointed owner, a realistic schedule and a savings estimate. Without an owner — there is no execution.
- Execution in waves: you start from the no-cost "quick wins," accumulate trust and budget, and continue to the deeper layers. Presenting an early first saving strengthens the organizational commitment to continue.
- Measurement after implementation: you compare the consumption to the baseline to verify that each move actually worked — and did not just look good on paper. Measurement also reveals cases where one tuning "cancelled" a saving created elsewhere.
- Embedding in ongoing maintenance: tunings and settings enter the written maintenance plan, so they don't "creep back" with a change of technician or after a fault that resets the settings.
- A periodic repeat audit: energy is a moving target — systems age, floor uses change, and so an audit updated every few years ensures that the picture stays current.
This is exactly where professional property management makes the difference between an audit that generates savings and an audit that collects dust. A party that coordinates the tasks, closes them and measures the results — turns the report into money. See more on comprehensive property management.
Bottom line for the building manager
An energy audit is one of the highest-return investments an office building owner can make — not because it is "green," but because it pays. It replaces guesses with data, points to waste no one saw, and orders the investments by real worthwhileness. A building managed by measurement consumes less, costs less to run, and is worth more in the market. But all of this holds under one condition: that the findings turn into action. An audit in the drawer does not save a penny.
And for those still hesitating — you don't need a comprehensive engineering audit to take the first step. Take the electricity bills of the last year and look at the consumption at night and on the weekend — if it is unreasonably high for a building that is supposed to be off, you have already found an opportunity. Walk around the building at seven in the evening and see what is still on and cooling empty spaces. Note the age of the chillers and the type of lighting fixtures. These simple questions are already half the audit — and they illustrate how much waste is visible to anyone who bothers to look. Once you understand the value of this picture, the full professional audit becomes an obvious choice.
Frequently asked questions
How often should an energy audit be carried out for an office building?
It is recommended to carry out a first comprehensive audit to establish a snapshot and a baseline, and then a repeat audit every three to five years — or upon any material change: replacement of a central system, a renovation, a change in the building's use, or a significant change in tenants. Between one audit and the next, ongoing monitoring of the monthly electricity bills provides early warning of deviations that require examination.
Is an energy audit suitable also for an old, unrenovated building?
Precisely in old buildings lies the greatest potential — aging systems with poor efficiency, inefficient lighting and lacking control are exactly the sources of waste that an audit locates. In an old building, most of the first opportunities are operational and almost cost-free, with a quick return that generates budget for capital upgrades later on.
Who carries out an energy audit and how do you choose a trustworthy provider?
An energy audit is carried out by an energy expert or an independent energy consulting firm — one that does not sell the equipment it recommends. Check that the audit includes a breakdown of consumption by system, a ranked list of opportunities with savings estimates, and a measurement baseline for future comparison. Ask up front: are the savings estimates based on measurement in your specific building or on theoretical averages?
What is the connection between Israeli Standard 5281 and an energy audit?
Israeli Standard 5281 (green building) defines requirements for the energy performance of buildings and serves as an accepted reference framework in the Israeli real estate market. An existing building that is not obligated to obtain formal certification can still adopt the principles of the standard through an energy audit and gradual improvement — and document this as a basis for ESG reporting to tenants and investors.
What is the connection between an energy audit and preventive maintenance?
The link is direct and measurable. A neglected system — a clogged filter, an unscheduled chiller — consumes more electricity to deliver the same performance. An energy audit exposes the energy cost of poor maintenance and puts it in numbers. That is why the two tools complement each other: preventive maintenance that is preserved is also ongoing energy efficiency.
What is base consumption and why is it important in an energy audit?
Base consumption is the amount of electricity the building consumes when it is 'off' — at night, on weekends and on holidays. A building that is energetically active even during off-peak hours reveals waste: equipment left on, auxiliary systems running unnecessarily, and sometimes control faults that no one knew about. Analyzing base consumption is one of the simplest and most effective tools for identifying initial waste even before a full audit.



