What is the Energy Efficiency Grant?

The energy efficiency grant supports the investment in technologies and equipment of enterprises

Following a Green For Business report, Greenstart report or a SEAI Energy Audit with 75% of eligible Costs up to a maximum grant of €10,000.

The aim of the scheme is to reduce the impact of enterprises on the environment thereby increasing the agility and resilience of these businesses.

The grant is intended for small enterprises (employing between 1 and 50) who have undertaken a Green for Micro, GreenStart or recent energy audit by a SEAI registered energy auditor and who are  not currently clients of Enterprise Ireland or IDA.

This scheme supports all aspects of sustainability project expenditure associated with the operation of an enterprise including water; energy; circular economy etc. Enterprises should be signposted to the Sustainable Energy Authority of Ireland for grant aid in respect of the building they are located in.

Background

The Climate Action Bill, launched in 2021, commits to a 51% reduction in greenhouse gases GHGs (carbon dioxide, methane, and nitrous oxide) by 2030, and, in Ireland becoming a climate neutral zero economy by no later than 2050, in line with our international and EU obligations. The Bill provides a strengthened statutory framework around climate action, which includes economy-wide carbon budgets, annual climate action plans, and long-term climate action strategies. In 2021, industry emissions accounted for 10.2% of Ireland’s total greenhouse gas emissions.

The Climate Action and Low Carbon Development (Amendment) Act 2021 requires Ireland to achieve a 51% reduction in emissions by 2030 (relative to 2018 levels) and net-zero emissions no later than 2050.  

Under the sectoral emissions ceiling agreed in July 2022, and as implemented by Climate Action Plan 2023, industry must reduce emissions by 35% by 2030 from a 2018 baseline. This will be a significant challenge for Irish enterprise to achieve.

Who is Eligible for Energy Grant? 

The Energy Efficiency Grant is open to small enterprises (with between 1 and 50 paid employees) who:

• have undertaken a Green for Business, Green Start or SEAI Energy Audit.
• are not currently clients of Enterprise Ireland or IDA.
• are established and trading for at least 12 months, registered, and operate within the area of the Local Enterprise Office.
• this grant aid is considered not to give rise to unacceptable deadweight (where the project would have proceeded anyway).
• are solvent as demonstrated in the financial statements supplied.
• have either, a fixed premises that is commercially rateable. Businesses will be required to supply a commercial rates bill to verify this, or be an establishment which is approved within the Fáilte Ireland National Quality Assurance Framework. Businesses will be required to supply approval documentation to verify this.
• Any business that has a commercially rateable premises, or where rates are paid on their behalf and attributable in the rental or other agreement to the business premises they occupy, can apply.
• Commercially rateable premises, where a business is rateable but is not currently rated by Valuation Office for a variety of reasons, can apply. Businesses will be required to submit documentation from a Local Authority demonstrating that they have a commercially rateable premises that is not currently rated.
• Own the building/premises where the investment will take place or must hold a lease agreement on same, with at least 12 months remaining or agreed option to renew.
• Where an enterprise has multiple business premises, it can apply for projects across each premises, subject to the overall limits set out per undertaking.
• A company, self-employed individual or partnership carrying on a trade or profession, the profits of which are chargeable to tax under Case I or Case II of Schedule D by virtue of section 18(2) of the Taxes Consolidation Act, 1997 (TCA). Pay As You Go (PAYG) customers are within the scope of the scheme
• Sporting bodies that carry on activities which would be chargeable to tax under Case I or II of Schedule D but for an exemption set out in section 235 TCA are eligible to apply to the scheme.
• Charities that carry on activities that would be chargeable to tax as trading income, but for an available tax exemption under section 208 TCA, are also included within the scope of the scheme.
• Businesses must have current tax clearance from Revenue. Businesses must supply a Tax Reference Number and a Tax Clearance Access Number to allow for verification of their Tax Clearance status on Revenue’s online portal.

Ineligible Businesses

• Are operating solely from a domestic/home based office.
• Companies with charitable status, commercial semi-state companies, “not for profit” organisations – which do not meet the above criteria, trade associations, company representation bodies such as Chambers of Commerce, Sporting Bodies – which do not meet the above criteria and other non-commercial bodies or associations are not eligible to avail of the Small Capital Grants.
• Are operating in the coal or steel sector.
• Are active in the primary agricultural, fishery or aquaculture sectors.
• * Are involved in activities that Local Enterprise Offices considers as ineligible or as involving an unacceptable reputational risk. Ineligible activities include activities relating to:

The gambling sector, including ‘gaming’ (as defined in the Gaming and Lotteries Act 1956).
Adult entertainment.
Tobacco and tobacco related products.
Cannabis-based products which are not authorised as medicines.

Note: This is not an exhaustive list and Enterprise Ireland has a dynamic policy position on several activities.  Any queries in relation to the eligibility of an acitivity will be directed to the Enterprise Ireland Policy department who will assess the case.

*except those involved in activities that the Local Enterprise Offices consider as ineligible (primary agricultural, fishery or aquaculture, coal and steel sectors) and those involving an unacceptable reputational risk including gambling, ‘gaming’ (as defined in the Gaming and Lotteries Act 1956), adult entertainment, tobacco products and cannabis-based products which are not authorised as medicines).

Eligible Costs

• Meters (e.g. electricity, gas, diesel, oil, water, steam & loggers) and installation & commissioning costs
• Smart energy controls e.g., heating, cooling, lighting, automatic on/off systems, parasitic load controls
• Replacement/upgrade with more energy efficient system, e.g. Heat Pumps for manufacturing heating processes (including air, water, and ground source)
• Heat recovery
• Equipment replacement/upgrade must be of improved energy rating than what is in place at time of application.  The equipment must conform to the triple E register available on the SEAI website.  In exceptional circumstances second hand equipment may be considered up to a maximum of 5 years
• Investment in energy efficient systems (not supported by another other agency funding)
• Eligible costs are equipment costs including installation and commissioning costs.

Ineligible Costs

• Any energy efficiency systems available for support from other agencies such as SEAI 
• Solar panels; a Solar PV grant is available under SEAI Non-Domestic Microgen Scheme
• Biomass boilers, Anaerobic Digestors; SEAI Support Scheme for Renewable Heat provides operational support to biomass heating systems and anaerobic digestion heating systems
• Insulation, Heat pumps for space heating; support is available under SEAI Sustainable Energy
• Waste treatment systems 
• Activities related to fossil fuel e.g., fossil fuel condenser boiler

Min and Max grant aid

Funding will be in the form of a grant. The grant aid will be 75% of eligible costs from a minimum grant aid of €1,000 up to a maximum grant of €10,000 per application.

There is a limit of 1 grant approval per enterprise.

There is a set amount of funding available for this scheme therefore, it may not be possible to award aid to all eligible projects.

Apply here: Local Enterprise Office (submit.com)

You will also need to complete the following: https://www.climatetoolkit4business.gov.ie/