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Energy Audit ROI Estimator

Spend a few minutes here before you spend a few lakh on an audit. Enter your own savings estimate and capex to see payback, NPV, IRR and 10-year cumulative savings. Every input is your assumption — the tool does not assume a savings figure for you.

Inputs

Result

Annual savings (Year 1)
₹6.0 L
Simple payback
2.2yrs
IRR
49.8%
10-year cumulative savings
₹75.5 L
NPV @ 10%
₹31.6 L
Upfront investment
₹13.0 L (audit ₹3.0 L + retrofit ₹10.0 L)
Estimated carbon savings: 44 tonnes CO₂/year (₹10.0/kWh avg tariff, 0.727 kg CO₂/kWh India grid — CEA FY2023-24)

How this works

This tool models the cashflow of an energy audit plus its identified retrofits:

Annual savings (Year 1) = Annual bill × Savings %
Upfront = Audit cost + Implementation cost

Year-N savings = Year-1 savings × (1 + tariff escalation)^(N-1)
NPV = -Upfront + Σ (Year-N savings / (1 + discount rate)^N)
IRR = discount rate at which NPV = 0

Simple payback ignores escalation and discounting. NPV and IRR are the right numbers when you are competing for capital against other projects. For anything over ₹50 lakh retrofit, always present the NPV and IRR.

Where audits usually look, by facility type

The biggest opportunity areas differ by facility. How much each one is worth at your site is what the audit — and your own metering — should tell you.

Facility typeBiggest opportunity areas
Manufacturing (discrete)Motors, compressed air, HVAC
Process industryHeat recovery, steam system
HospitalHVAC, hot water, OT sterilisation
HotelHVAC, lighting, hot water
Commercial officeHVAC scheduling, lighting, plug loads
Data centreCooling setpoints, airflow management
Warehouse / logisticsLED conversion, HVAC zoning

Worked example — pharma manufacturing

An illustration of the arithmetic, not a forecast: a plant with a ₹12 crore annual electricity bill, using hypothetical inputs.

  • Assumed savings: 5% of the bill = ₹60 lakh/year (Year 1)
  • Audit cost (auditor's quote): ₹3 lakh
  • Implementation capex (vendor quotes): ₹1 crore
  • Total upfront: ₹1.03 crore
  • 10-year NPV @ 10% discount, 5% tariff escalation: about ₹3.4 crore
  • IRR: about 62%
  • Carbon saved: about 436 tonnes CO₂/year (at ₹10/kWh, 0.727 kg CO₂/kWh)

Change any input and the result changes with it — which is the point. The decision should rest on the savings your audit actually identifies and the quotes you actually receive.

Why most audits under-deliver (and how to fix it)

Audit reports identify savings. Year-two invoices often show less. What happens in between?

  • No sub-metering = no way to verify the savings, so they cannot be defended when they backslide
  • Operators revert to old setpoints the week after the auditor leaves
  • The meter was temporary — pulled out after the 4-week audit window, so the facility is blind again
  • No accountability loop — nobody is comparing actual to predicted consumption each month

Titan Audit is built to stay after the audit ends. Same Class 0.5S metering engine, split-core CTs that deploy in 2 minutes without downtime, and an app that generates branded PDF audit reports without a laptop. When the audit finishes, leave the meter installed and connect it to the Energy Intelligence Platform for continuous M&V. Same hardware, no second purchase, no swap-out. See the Energy Audit solution for the full workflow.

For ESCOs, the audit hardware can become the M&V hardware and then the performance-contract monitoring hardware — one device across all three stages.

Frequently asked questions

Six questions on audit scope, BEE PAT, and making savings stick.

Level 1 (walk-through): operational fixes, setpoint adjustments, scheduling — little or no capex. Level 2 (standard audit): detailed energy analysis, sub-metering of major systems, identification of low/medium-cost retrofits. Level 3 (investment-grade): detailed engineering and financial analysis, ready for capital approval — typically required for ESCO contracts and financed retrofits. BEE PAT generally aligns with Level 2 expectations.
For BEE-designated consumers (DCs) under the Perform-Achieve-Trade (PAT) scheme, yes — a BEE Accredited Energy Auditor must conduct the audit once per PAT cycle (typically 3 years). This covers large industrial units in aluminium, cement, chlor-alkali, fertiliser, iron and steel, paper, power, textiles, railways, refineries, and distribution companies. Designated-consumer thresholds are set per sector in tonnes of oil equivalent (toe) per year — for example 3,000 toe for textiles, 7,500 toe for aluminium, and 30,000 toe for cement, iron and steel, and fertiliser. Commercial buildings under ECBC-compliant state rules may also have triennial audit requirements.
There is no honest single number — it depends on how efficient the site already is, what the audit finds, and which measures you actually implement. For context, BEE reports that PAT Cycle I (478 designated consumers, target 6.686 Mtoe) achieved about 8.67 Mtoe of savings across the 427 units assessed. For your own estimate, use the savings your auditor identifies and the capex from vendor quotes — and measure before and after so the number can be verified.
Yes — but they require management attention, not magic. Typical examples: fixing compressed-air leaks, fixing VFD bypasses where motors run at full speed on throttled flow, correcting chiller sequencing, tightening HVAC setpoints, switching off idle loads on weekends. The catch: without continuous monitoring, savings tend to backslide as operators revert. That is the real argument for continuous metering post-audit.
Every 3 years minimum (BEE PAT cycle) for large industry. For commercial buildings, every 3–5 years. The bigger question is continuous M&V (measurement and verification) — a proper energy management system with permanent sub-metering catches drift in weeks rather than years, making re-audits a formality instead of a rediscovery exercise.
Yes. Titan Audit is a portable-plus-permanent energy logger designed for exactly this use case. Clamp on with split-core CTs, log for 1–4 weeks, generate PDF reports from the phone app. A facilities engineer with basic electrical training can deploy it. For Level 2/3 audits you still want an accredited energy auditor, but Titan Audit provides the defensible Class 0.5S measurement data their report relies on. Post-audit, leave the meters installed for continuous M&V — same hardware, same dashboard.

Related products & solutions

The measurement stack that makes audit savings durable, not aspirational.

Titan Audit — Energy Logger

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Energy Audit Solution

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Energy Efficiency Solution

What happens after the audit — continuous monitoring to cut factory electricity costs.

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Portable energy logger

Clamp-on 3-phase power and energy logger for energy auditors and ESCOs — survey a panel without a shutdown, then move it to the next site.

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Ready to audit — and keep the savings?

Talk to our team about metering for BEE PAT, ASHRAE Level 2/3 or ESCO M&V work. We supply the equipment; your auditor runs the audit.

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