Community & PartnersSolar Calculator
Green Integrations
Start your assessment

How does a commercial energy audit reduce electricity costs?

A commercial energy audit identifies where a facility is consuming more electricity than its operations require — HVAC inefficiencies, lighting waste, controls drift, compressed air losses — and quantifies the saving available from each. Implementing the identified measures reduces the electricity bill directly, without changing operations.

UpdatedJune 2026
Read time4 min read
CategoryCommercial Energy Audits
Reviewed byGI Engineering
Clear answer

Clear answer, explained.

The audit reduces electricity costs in two ways. The first is consumption reduction: implementing ECMs such as HVAC recommissioning, BAS reprogramming, and LED retrofits lowers the total kWh the facility purchases from the grid each month. The second is demand reduction: measures that reduce peak consumption windows lower the demand charge component of the electricity bill, which for many C&I facilities represents 30–50% of total electricity spend.

The financial impact is specific to each facility. On a completed audit for a distribution facility in Ontario, five conservation measures delivered $107,320 in annual savings from building-side efficiency alone. The same audit identified a rooftop solar opportunity that added $204,503 in annual avoided grid purchases — bringing the total identified savings to $311,823 per year across both efficiency and generation.

The audit identifies what is available. The implementation timeline and sequencing are the client's decision — measures can be implemented in phases based on budget and operational priorities, with each phase delivering its portion of the identified savings.


Key points

What this means in practice.

  • ECMs reduce consumption by lowering the kWh a facility purchases from the grid each month
  • Demand-reducing measures lower the peak demand charge — often 30–50% of a C&I electricity bill
  • On a completed audit for a distribution facility, five ECMs delivered $107,320 in annual savings
  • The same audit identified combined efficiency and solar savings of $311,823 per year
  • Savings are quantified per measure — allowing prioritisation by financial return and budget
  • ECMs can be implemented in phases — each phase delivers its portion of identified savings immediately

When this applies

Best-fit environments.

  • Your electricity bill is high but you are not sure which systems are the primary drivers
  • You want to understand the financial return available from efficiency measures before committing to any investment
  • You are a CFO or operations director looking for quantified, data-backed savings projections
  • You are sequencing a multi-year energy improvement program and need to prioritise by ROI

Start your assessment

Understand your facility's energy economics.

Get a utility bill analysis and financial model at no cost. Understand savings, incentives, and system sizing before making a decision.