By assessing the equipment and the way it is operated, an energy audit can help a business enterprise know how to optimise its energy usage, cut losses and make the best returns on investment. The audit can also lead to the company’s contribution to social cause by reducing its toll on natural resources and environment.


Energy sector is one of the most significant sectors in all developed as well as developing economies. To meet the energy demand, the supply needs to be adequate and that requires huge investments. And herein lays the importance of the sector.

Despite having installed advanced equipment, most enterprises – from a global-level company to a small business – suffer from energy losses. That’s why an energy audit becomes a necessity to determine the energy consumption associated with a particular facility and the potential savings that can be achieved.

  • An energy audit becomes a necessity to determine the energy consumption associated with a particular facility and the potential savings that can be achieved.
  • The main aim of the energy audit is to find out energy leakages, if any, and see how an organisation can reduce its energy consumption.
  • A good audit would analyse historical energy usage and find out potential issues by using statistical methods.

An energy audit is a method of understanding how and where a business is using its energy. It consists of a detailed survey of the company’s equipment and operations to understand the pattern of its energy usage. The main aim of the energy audit is to find out energy leakages, if any, and see how an organisation can reduce its energy consumption.

Energy audit not only educates the establishments on opportunities but also provides a financial analysis, which can enable prioritisation based on monetary benefits and return-on-investment. A good audit would analyse historical energy usage and find out potential issues by using statistical methods. Energy audit is also a good idea as it lets the organisations assess their standing in relation to the environment.

In a nutshell, the energy audit can make organisations understand their energy usage and identify the areas wherein it needs to be utilised optimally, or even, cut down. The cost-benefit analysis of the audit report can help decision-makers in a business enterprise prioritise opportunities and evaluate these as investments. And lastly, energy management is required to help an enterprise reduce its toll on natural resources and environment.