What you should expect from a Type 2 energy audit - 100% Renewables

What you should expect from a Type 2 energy audit

For many organisations, energy costs are a major expense, but they often creep up over time and might go unnoticed due to equipment wear and tear, or until a major retail price hike or change of contract cycle results in an unexpected shock to their energy bills. Understanding where energy is used (and wasted) can unlock opportunities to reduce costs, lower emissions, and improve operational efficiency. This is where an energy audit becomes valuable. An energy audit helps identify inefficiencies, uncover savings, and guide investment in energy efficiency improvements, often delivering benefits beyond cost savings, such as improved workplace comfort, equipment performance, and maintenance reduction.

What are the different levels of energy audits?

Energy audits are classified into three levels under the AS/NZS 3598:2014 standard, which includes guidance for commercial, industrial and transport sectors:

  • Type 1 – Basic audit: A high-level review that identifies broad energy efficiency opportunities with rough savings estimates.
  • Type 2 – Detailed audit: A more in-depth assessment that includes data analysis, site inspections, and financial evaluations for recommended improvements.
  • Type 3 – Precision measurement audit: A highly detailed audit with extensive monitoring and measurement, often required for complex energy systems or large industrial processes.

For most organisations, a Type 2 audit is the most practical option. It strikes the right balance between detail and cost-effectiveness, offering a clear picture of energy use while providing realistic, actionable recommendations with quantified savings, costs, and payback periods.

What does a Type 2 energy audit involve?

A Type 2 audit follows a structured process to ensure a thorough assessment:

  1. Data collection – Before the site visit, we gather key information, including electricity invoices, interval data (5-, 15-, or 30-minute readings), and any energy monitoring records. Interval data is crucial because it allows us to analyse and develop load profiles, which provide a preliminary assessment of the site’s energy usage patterns. An hourly load profile can reveal significant insights into a facility’s energy consumption even before we go on-site.
  2. Site inspection – Our auditors visit the facility to assess equipment and systems such as switchboards, motor systems, HVAC, lighting, water heaters, and plug loads (e.g., computers and appliances), as well as roof spaces for potential solar PV installations. We engage with key personnel to understand operating schedules, challenges, and past or planned energy efficiency projects. Photos and equipment specifications are documented for detailed analysis.
  3. Analysis & reporting – Using all collected data, we evaluate potential energy-saving opportunities, such as:
    • Peak demand management & load shifting
    • Motor system optimisation
    • Power factor correction
    • Network tariff optimisation
    • Electrification, such as gas-to-heat pump upgrades
    • HVAC improvements and upgrades
    • Solar PV and battery storage feasibility
  4. Final report & recommendations – The findings are compiled into a report outlining savings estimates, investment costs, and payback periods. We provide a prioritised list of actions, helping organisations make informed decisions.

Case study: library energy audit & savings impact

One of our clients operates a public library that consumes over 570 MWh annually. Through our Type 2 energy audit, we identified several energy efficiency opportunities, including solar PV and battery storage, lighting upgrades, chiller upgrades, VSD integration for cooling tower fans, and power factor correction. Our analysis projected that these measures could achieve up to 44% energy savings annually, equivalent to reducing 270 t CO₂-e of emissions. With an estimated investment of less than $500k and expected savings of over $50k per year, the projected payback period was under 9 years.

In some cases, opportunities could be as simple as optimising the network tariff structure or implementing behavioural and policy changes to reduce peak demand. These quick-win strategies can provide significant cost savings without requiring substantial capital investment.

How can a Type 2 audit help you access grants and funding?

A Type 2 energy audit can position businesses for government grants and funding opportunities. For example, the Community Energy Upgrades Fund (CEUF) supports energy efficiency and renewable energy projects for community facilities, requiring applicants to demonstrate clear energy savings potential. Similarly, the Manufacturing Energy Efficiency Grant (MEEG) Program, administered by the Queensland Government, provides funding to help Queensland’s small to medium manufacturing enterprises implement energy efficiency measures that reduce energy costs and emissions.

A Type 2 audit provides the necessary baseline and assessed opportunities to help you prioritise your upgrades and improve funding success rates. Note though, that detailed feasibility studies and engineering designs may also be necessary to satisfy grant and even internal funding requirements.

Why choose 100% Renewables for your energy audit?

At 100% Renewables, we specialise in helping Australian businesses and organisations gain a deeper understanding of their energy use, uncover savings, and transition toward net-zero emissions. Our Type 2 audits provide the insights needed to make informed decisions, improve sustainability, and secure funding for energy efficiency projects.

Let us help you take the next step toward a more energy-efficient and cost-effective future.

 

If you need help developing a climate transition strategy and action plan, or a climate risk assessment, contact us today to learn how we can support your transition. Reach out to  Barbara or Patrick for more information.

Feel free to use an excerpt of this blog on your own site, newsletter, blog, etc. Justsend us a copy or linkand include the following text at the end of the excerpt: “This content is reprinted from 100% Renewables Pty Ltd’s blog. 

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