Available Energy Grants in Ireland: A Guide for Businesses
Energy Grants Available in Ireland
There are a number of different energy grants available in Ireland, provided by numerous organisations. Individual grants have different requirements to be eligible for them. These are explained below and separated based on the organisation which provides the funding. If you would like to find out what grants are applicable to you then please book a free consultation call with our team here.
SEAI Grants
With the SEAI, there are a large number of grants available for many different things. These include grants for residential, commercial, electric vehicles and communities.
As a business:
The EXEED Grant Scheme is designed for organisations that are planning an energy investment project. Grant support of up to €1,000,000 per project is available.
The EXEED standard encourages innovation in design projects to help future-proof the investment, by
optimising energy performance,
reducing operational energy costs and carbon emissions,
improving competitiveness and
demonstrating a commitment to sustainability, which could also bring a reputational boost.
This scheme is open to all organisations planning an investment in an energy project. This includes:
new design projects
major renovation and major energy upgrades of existing buildings and assets
SEAI has developed a model contract to support ESCO (Energy Service Company) arrangements under the EXEED Certified Grant scheme while ensuring SEAI’s obligations under State Aid are managed appropriately.
The Support Scheme for Renewable Heat is a government-funded initiative designed to increase the energy generated from renewable sources in the heat sector. The scheme is open to commercial, industrial, agricultural, district heating, public sector and other non-domestic heat users.
The Scheme aims to
Bridge the gap between the installation and operating costs of renewable heating systems and the conventional fossil fuel alternatives; and
Incentivise the development and supply of renewable heat.
The Energy Efficiency Obligation Scheme
Under the Energy Efficiency Obligation Scheme, energy suppliers must support energy efficiency projects in businesses and homes across Ireland. SEAI is the administrator of the Energy Efficiency Obligation Scheme (EEOS). The scheme started in 2014. It places obligations on energy suppliers and distributors to deliver energy savings. This applies to all energy types, including electricity, gas, and solid fuel. Companies that sell large amounts of energy are known as obligated parties and they have targets under the scheme. Obligated parties offer support to make your home or business more energy efficient. For every unit of energy saved through these projects, they achieve energy credits towards their targets. This will help Ireland to reach national and European energy-saving targets.
Support Scheme for Energy Audits
SEAI’s Support Scheme for Energy Audits (SSEA) will offer SMEs a €2,000 voucher towards the cost of a high-quality energy audit. In most cases, this will cover the total cost of the audit. Application to the scheme is easy, with automatic approval for eligible businesses.
Businesses applying to the scheme must be:
non-obligated entities
tax compliant
registered in the Republic of Ireland
spend at least €10,000 on energy per year at the site being audited
An energy audit is an important step for businesses that want to save money, save energy, and enhance their brand. An energy audit may be carried out on buildings, processes, or systems and it is a three-step process which involves preparation, a site visit and reporting. The audit report that compiles the findings will help you to understand:
how much energy your business uses
the equipment and processes that use the most energy
what actions you should take to save energy, and their estimated cost and impact
Energy Contracting Support Scheme
The Energy Contracting Support Scheme provides financial assistance to help businesses and public sector organisations to deliver energy efficiency and decarbonisation projects through Energy Performance Contracts (EPCs), Local Energy Supply Contracts (LESCs) and Energy Performance Guarantees (EPGs).
The Scheme aims to support the direct external consultancy and/or specialist advisory costs related to project appraisal and procurement of pay-for-performance energy contracts.
Activities supported include, amongst others:
Preliminary energy audits
Feasibility studies
Risk assessments
Business case development
Financial analysis
Legal advice
Evaluation of procurement options
Specialist consultancy services, e.g. financial, technical, legal
How do I reduce my tax bill and energy costs? Accelerated Capital Allowance is a tax incentive encouraging investment in energy-saving technology.
The Accelerated Capital Allowance (ACA) is a tax incentive scheme that promotes investment in energy-efficient products & equipment. The ACA is based on the long-standing ‘Wear and Tear Allowance’ for investment in capital plant and machinery, whereby capital depreciation can be compensated through a reduction in an organisation’s tax liability.
The ACA scheme allows a sole trader, farmer or company that pays corporation tax or income tax on trading or professional income in Ireland to deduct the full cost of the equipment from their profits in the year of purchase. As a result, the business’s taxable profits are reduced by the value of qualifying capital expenditure. By contrast, the Wear and Tear Allowance provides for the same tax reduction, but this is spread evenly over an eight-year period.
For cars coming under the category “Electric and Alternative Fuel Vehicles,” the accelerated allowance is based on the lower of the actual cost of the vehicle or €24,000.
PPA SCHEME
For some companies, capital investment in renewable technologies may not be the right choice. Where your company doesn't have the capital for a non-core business project, or the right site, PPA schemes can be of great benefit.
Power Purchase Agreements (PPAs) are a proven method for managing the complexity and financial risk of renewable generation projects. Public bodies and businesses have an opportunity to reduce energy costs and carbon emissions, without any responsibility for the capital cost, ownership, or operation and maintenance of the asset.
You can use PPAs to source 100% of your renewable power, while also helping to fund additional new-generation infrastructure. This involves forming a long-term (10-25 year) contract with a renewable power generator.
If you have any questions about PPAs or renewable energy and how it can help your business make sure to get in touch with us here at Celtic Dynamics Engineering.
IDA GO GREEN
The IDA Go Green scheme which covers foreign-owned businesses in Ireland gives Green Start and Green Plus grants through its Go Green Business Offers. IDA Ireland’s “Go Green” is designed to encourage IDA clients to adopt green business principles in their organisation to increase competitiveness and achieve international environmental best practices. The grants can be used to develop Environmental Product Declarations (EPD). You can find more information here. Dylan may want to add stuff here. Currently, every link on the IDA Go Green offers both in our spreadsheets on grants and online is taken down.