HVAC | Audit Funding Program

Learn how you can help your customers better understand their heating, ventilation, and air conditioning (HVAC) system’s energy use and discover opportunities for savings.

An energy audit – completed by qualified, experienced professionals – will help your customers understand how they are using energy. You can help your customers find a professional to assess their potential for saving on operating costs. Or, you can act as auditor, if you fulfill requirements. Available incentives can offset up to half of the audit cost.


Eligibility

What kinds of businesses can receive incentives?

  • Commercial buildings, such as offices, retail and grocery stores, restaurants, hotels, and warehouses;
  • Institutional buildings, such as hospitals, schools, universities, colleges, government and civic buildings;
  • Industrial buildings, such as manufacturing facilities and warehouses;
  • Multi-family buildings, such as apartments (including social housing) or condominiums; and
  • Agricultural facilities, such as dairy, swine or poultry farms, greenhouses and nurseries.

Application

An energy audit is a great first step for your customers to discover how they're using their energy, so they can make the right investments in equipment upgrades. You can deliver value by letting your customers know how to get funding for these audits.

Step 1: Find a qualified energy auditor

Your customer should speak with their local hydro company to discuss options for an energy audit. The energy auditor who performs the assessment must meet at least one of the following qualifications:

  • Be a professional engineer licensed to practice in Ontario (PEng.), a certified engineering technologist (CET), a certified energy manager, or a certified measurement and verification professional with at least three years of relevant experience evaluating energy systems in buildings;
  • Be an engineer-in-training under the supervision of a PEng. or CET only if a qualified and experienced person as described above certifies and signs the Audit Report; or
  • Be a Building Energy Assessment Professional, as designated by the American Society of Heating, Refrigeration and Air Conditioning Engineers.

For a Building Systems Audit, the energy auditor must satisfy the above requirements and will have the following additional qualifications, as applicable:

  • For an energy audit to balance water systems or balance air systems, be a certified member of either the Associated Air Balance Council or the National Environmental Balancing Bureau;
  • For an energy audit for a compressed air system, have completed the following courses sponsored by the Compressed Air Challenge: (A) Fundamentals of Compressed Air Systems (Level 1) and (B) Advanced Management of Compressed Air Systems (Level 2)

Step 2: Complete the energy audit application

Ask your customer to complete the energy audit application and participant agreement (provided by their local hydro company); ensure the minimum requirements are captured during the energy audit. Get pre-approval from the local hydro company before starting the audit.

Step 3: Proceed with the audit

Step 4: Submit the post-energy audit submission

Your customer completes and provides the post-energy audit submission form to their local hydro company; this includes the energy audit report, and the energy auditor invoice. The local hydro company will verify the savings and results and issue a cheque based on the audit type and costs.


What kinds of audits do the incentives cover?

Incentives can cover up to 50 per cent of the assessment cost, as follows:

 

For Eligible Building Owners

Step 1: Electricity Survey and Analysis (up to $25,000 in incentives)

As a first step, this financial analysis, or life cycle analysis, provides your customer with the data they need to fully consider the financial benefits of installing a variety of energy-efficient measures.

For buildings up to 30,000 square feet the incentive is $0.10 per square foot, up to a maximum of 50 per cent of electricity survey and analysis costs (whichever is less).

For buildings larger than 30,000 square feet, the incentive is $3,000 for the first 30,000 square feet and $0.05 per square foot for each incremental square foot, up to a maximum of 50 per cent of the electricity survey and analysis costs, or up to $25,000 (whichever is less).

Step 2: Detailed analysis of Capital Intensive Modifications (for buildings with greater than 50,000 square feet)

After the Electricity Survey and Analysis has been completed, the next step is to focus on potential capital-intensive projects identified during the assessment. Detailed field data is combined with a more rigorous engineering analysis to provide detailed project cost and savings calculations (sufficient for major capital investment decisions).

The incentive is $0.05 per square foot up to a maximum of 50 per cent of detailed analysis of capital intensive modification costs, or up to an additional $10,000 (whichever is less).

For Eligible Owners, Tenants and Lessees

Building Systems Audit

A Building Systems Audit is a detailed analysis of non-capital-intensive modifications (for example, balancing and optimizing auxiliary fans, pumps, compressed air systems, building automation systems, domestic water and all associated distribution systems), conducted in accordance with the requirements set out in the Energy Audit Report Minimum Requirements. This does not include lighting modifications. Incentives are provided at 50 per cent of the audit cost minus any third-party contributions capped at $5,000.

For Eligible Tenants

Electricity Survey and Analysis

The Electricity Survey and Analysis provides up to $7,500 in incentives. Here, the incentive pays for audits related to lighting, office equipment and plug loads. The incentive is $0.03 per square foot, up to a maximum of 50 per cent of the electricity survey and analysis for an eligible tenant costs, or up to $7,500 (whichever is less).

 

How are incentives calculated?

Here’s how to calculate an Electricity Survey Audit incentive for lessee customers, assuming the following information as an example.


Building

Audit Costs

Third-party contributions

Travel expenses (auditor)

G $1,000 $100 $250
H $5,000 $500 $1,100
I $10,000 $1,000 $2,000

Here’s how the incentive would be calculated:


Step-by-step

Building G

Building H

Building I

Step 1:
Take the square footage
10,000 30,000 50,000
Step 2:
Find the estimated incremental incentive, based on square footage
10,000 x $0.03 = $300 30,000 x $0.03 = $900 50,000 x $0.03 = $1,500
Step 3:
Multiply the estimated audit cost by 50 per cent
$1,000 x 0.5 = $500 $5,000 x 0.5 = $2,500 $10,000 x 0.5 = $5,000
Step 4:
Subtract any third-party contributions
$500 - $100 = $400 $2,500 - $500 = $2,000 $5,000 - $1,000 = $4,000
Step 5:
Take the lesser of Step 4 or $7,500
$400 $2,000 $4,000
Step 6:
To calculate the estimated incentive amount, take the lesser of Step 2 or Step 5
$300 $900 $1,500
Step 7:
Add eligible travel expenses (50 per cent of energy auditor travel costs, up to $1,000)
$250/2 = $125 $1,00/2 = $550 $2,000/2 = $1,000
Step 8:
Total electricity survey and analysis (add Step 6 and Step 7, excluding applicable taxes)
$300 + $125 = $425 $900 + $550 = $1,450 $1,500 + $1,000 = $2,500

View print-ready version of how incentives are calculated here.

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