Clear answer, explained.
ASHRAE Level 1 is a walk-through assessment combined with utility bill review. It identifies low-cost and no-cost improvements and provides a rough estimate of savings potential. It is used for initial screening or to determine whether a deeper audit is justified — not for incentive applications or detailed capital planning.
ASHRAE Level 2 is a detailed energy survey and analysis covering all facility systems. Each energy conservation measure is quantified with an estimated annual saving, implementation cost, and payback period. Level 2 is the standard required by NRCan's Industrial Energy Management program and the IESO saveONenergy Retrofit Incentive Program. Most C&I projects begin here.
ASHRAE Level 3 is an investment-grade audit with rigorous engineering analysis and measured data. It covers one or two high-capital measures in depth, providing the bankable projections a board requires before committing to large HVAC replacements, envelope projects, or combined efficiency and generation programs. It is not required for most C&I projects and adds cost and time that Level 2 does not justify for typical retrofits.
What this means in practice.
- Level 1 is a walk-through assessment — suitable for initial screening only
- Level 2 is a detailed energy survey with quantified savings for each conservation measure
- Level 3 is an investment-grade audit with detailed engineering analysis for major capital decisions
- Most C&I incentive programs — including NRCan IEM and IESO saveONenergy — require Level 2 methodology
- Level 2 is the most common starting point for commercial and industrial energy projects in Ontario
- The right level depends on your goal — screening, incentive qualification, or major capital approval
Best-fit environments.
- You are applying for NRCan or IESO saveONenergy incentives and need to confirm which audit level qualifies
- You want to screen a facility for savings potential before committing to a full assessment
- Your board requires bankable projections before approving a major HVAC or building envelope investment
- You are scoping a combined efficiency and solar program and need to establish the right baseline
