What is an Investment Grade Energy Auditor (IGEA)?
What is an Investment Grade Energy Auditor (IGEA) and Why it Matters for Your Business
Every dollar wasted on inefficient energy use is a dollar that could have been invested back into your business.
Rising energy costs, stricter regulations, and increasing pressure to meet sustainability goals mean that businesses can no longer afford to overlook energy efficiency.Â
One of the first steps for businesses wanting to reduce their energy usage is to hire an energy auditor to undertake an energy audit of the facility. The energy auditor will come up with a list of energy savings recommendations, and show the estimated cost of implementing each savings measure, along with the expected savings.Â
But how do you know that the advice that the energy auditor has provided you is trustworthy, and that the business case actually stacks up? This is where an Investment Grade Energy Auditor (IGEA) comes in.
Energy audits are essential tools for identifying areas of waste, improving system performance, and ensuring compliance with industry regulations. However, not all energy audits are sufficiently comprehensive or accurate enough to support major financial decisions. An IGEA-certified energy auditor, on the other hand, has been trained and assessed on their ability to provide sound advice that maximizes savings with your available budget.
This article will explore why hiring an IGEA gives greater assurance that businesses looking to maximize energy efficiency, and cut costs will get the best value from their investment.
Unfortunately some energy auditors may not merit the trust put in them
Energy auditors of commercial and industrial facilities are typically paid tens of thousands of dollars to identify and provide a business case for energy efficiency investments. Yet, unfortunately, that advice may be of poor quality, and cannot be trusted.
A recent assessment of the Energy Services Company (ESCO) market in Australia found that the number one reason that this market is not strong was a lack of trust in ESCOs. ESCOs are businesses that identify – through an Investment Grade Energy Audit – and implement energy efficiency upgrades, usually guaranteeing the savings. Some of this lack of trust comes savings being lower than expectations, and the business case not being trustworthy – or in other words the energy audit not being trustworthy.Â
And this problem is not restricted to just Australia. Various studies list problems with energy auditors not providing trustworthy advice, such as:
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- Over-optimistic savings estimates (Hong and Li; Tian et al.)Â
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- Use of generic reports that aren’t tailored to the site being audited (Carbon Trust)
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- Savings opportunities completely missed (Mills)
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- Inaccurate recommendations (Rosenberg)
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Unfortunately some auditors do not follow a systematic process and thus miss savings opportunities, overstate the expected savings, fail to account for interactive effects between energy savings measures (thus possibly further over-estimating savings), do not have sufficient experience in the technologies they are providing advice on, and underestimate upgrade costs. Regrettably this means that their advice cannot be trusted.Â
If you are seeking to have an energy audit done of your facility, one way of reducing the risk that you’ll receive advice that can’t be trusted, is by requiring that the audit be undertaken by a fully certified Investment Grade Energy Auditor.Â
(You can also reduce your risk by ensuring you understand exactly what is involved in an energy audit. Learn about this here.
What is an Investment Grade Energy Auditor (IGEA)?
An Investment Grade Energy Auditor (IGEA) helps businesses and organizations optimize energy use, reduce costs, and make informed investment decisions regarding energy efficiency.Â
An IGEA is trained and certified by the Sustainability Education Academy. You can learn more about the training and certification process here.Â
An Investment Grade Energy Auditor is trained to conduct comprehensive, data-driven energy audits that support financially sound decision-making. Unlike general energy auditors, IGEAs are trained in a systematic process of identifying energy savings opportunities, to maximize the savings potential, whilst also receiving a thorough grounding in how energy is used to provide essential business services such as lighting, heating and cooling, etc.Â
IGEAs learn a process that has a strong focus on providing advice that can be trusted and relied on, and thus if they follow this process can be relied on when making investment decisions.Â
When following the process they have been taught, IGEAs can produce detailed energy savings recommendations that are relied upon by executives, investors, and financial institutions to justify energy efficiency investments. Becoming an IGEA requires rigorous training, a deep understanding of energy systems, and proficiency in financial analysis techniques that quantify expected savings and payback periods.
An IGEA is certified by passing multiple assessments during the training, attending an interview to obtain Provisional IGEA status and by submitting a real energy audit, which needs to be assessed as meeting IGEA standard, in order to be certified as a Full IGEA.Â
Why Hiring an IGEA MattersÂ
Hiring an IGEA ensures that your business is being advised by a professional who has proven his or her ability to provide accurate, data-driven insights that can withstand scrutiny from stakeholders and funding sources. An IGEA’s ability to conduct a rigorous assessment of energy use leads to actionable recommendations that are backed by financial justifications. This translates into significant cost savings and return on investment (ROI) by identifying projects with the highest potential for reducing energy expenses.Â
What Are the Qualities of an Investment Grade Energy Auditor to Hire?
An effective Investment Grade Energy Auditor must possess a combination of technical, financial, and communication skills.Â
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- Analytical thinking is crucial, as auditors must assess energy usage patterns, identify inefficiencies, and develop optimized solutions.Â
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- A strong foundation in financial acumen is necessary to conduct cost-benefit analyses, calculate return on investment, and provide detailed projections that support decision-making.Â
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- Attention to detail is another key trait, ensuring that energy audits are thorough, precise, and reliable.Â
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- Understanding of the science and engineering that underpins the operation of energy using technologies is key knowledge for an IGEA. IGEAs are trained in lighting, heating ventilation and air conditioning (HVAC), hot water, and industrial systems covering motors, steam, compressed air and refrigeration. These are all vast topic areas, an IGEA will not necessarily be a leading expert in each of these areas, but should have the self-awareness of what they don’t know, and the humility to bring in other experts as needed for specific projects.Â
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- Strong communication skills are also essential, as IGEAs must explain complex energy concepts and financial implications in a way that business executives and decision-makers can easily understand.Â
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- Finally, a commitment to sustainability is commonly the driving force behind the work of an IGEA, as they are dedicated to helping businesses improve energy efficiency while reducing environmental impact.
Who Could You Train to be an IGEA in Your Business?
Businesses who have in-house energy managers should consider getting their energy manager trained and certified as an IGEAs. Other individuals who will find the IGEA training useful are those in roles such as facility managers, production engineers and sustainability officers. Learn more about the IGEA training and certification here.Â
Note, however, that it requires a considerable time investment to become an IGEA, and this investment is likely not warranted unless your business is a large energy user. It is usually better in this case to contract an IGEA when you need an energy audit undertaken, and to seek to develop a strong collaborative relationship.
Conclusion
If you are contracting an energy auditor to provide advice to your business, not-for-profit, or government, on reducing your energy consumption through energy efficiency, specify that the energy auditor be a fully certified Investment Grade Energy Auditor.
An IGEA is trained and certified to follow a process that rigorously identifies a wide range of savings opportunities, and to provide accurate estimates of the costs and benefits of energy efficiency upgrades.Â
By specifying that your energy audits be undertaken by a full IGEA you are more likely to receive quality energy efficiency advice that you can trust.Â