When a Level 3 makes sense
A Level 3 audit, sometimes called an investment-grade audit, follows a Level 2 when one or more projects are large enough that the savings estimate has to be defended: in front of a lender, a board or a capital committee.
- Replacing a central plant, chillers or boilers
- Fuel switching, such as moving from gas boilers to heat pumps
- Deep envelope retrofits or recladding
- Projects financed on their savings, or through Toronto Energy Retrofit Loans
What it adds to a Level 2
Measured data
Temporary data loggers, submetering or building automation trend data on the systems in question.
Calibrated model
A whole-building or system energy model tuned to the building's actual utility data.
Detailed costing
Cost estimates developed far enough to budget and procure against.
Risk and sensitivity
How savings change with weather, occupancy and operating assumptions.
How it connects to decarbonization plans
Toronto's Energy Retrofit Loans require a decarbonization plan showing at least a 60% cut in greenhouse gas emissions by 2040, including fuel switching and envelope measures. A Level 3 analysis is often the backbone of that plan for complex buildings.
Start with a Level 2 audit if you don't have one; it tells you which projects deserve Level 3 scrutiny.