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 6 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
• Upgrade lighting to LED (only as part of a package of eligible cost measures)
• Replacement/upgrade with more energy efficient system, e.g. Heat Pumps (including air, water, and ground source) for manufacturing heating processes
• Heat recovery
• Technology/Equipment replacement/upgrade must be more energy efficient than what was in place at time of application, and can only be replaced/upgraded if it is greater than 5 years old. Examples of eligible technology/equipment include refrigeration units, electric steam boiler, electric oven and an industrial dishwasher.
• Small wind turbine & hydro generator  -  Subject to a pre-investment technical assessment by the LEO to confirm site and proposed capital investment suitability, identifying any technical risks or uncertainties. It should be noted that Local Authority planning permission is required to install either a small wind turbine or hydro generator. Applicants must submit a copy of their Local Authority Planning Permission Approval as part of their EEG application.
• Investment in energy and resource efficient systems
• Food waste systems.

For Anaerobic Digestors and land spreading of Anaerobic Digestor digestate, either planning permission approval/permit,
or, a letter from the appropriate regulatory authority confirming planning permission/permit is not required, must be submitted as part of the application.

 Projects must comply with relevant EU and national environmental legislation and where applicable applicants must provide confirmation that appropriate Anaerobic Digestors digestate storage is in place and procedures for the disposal of excess Anaerobic Digestors digestate are in place (i.e., waste shall be collected for off-site disposal or recovery by a contractor who is in possession of a Waste Collection Permit)

• Water management systems - LEO to submit project outline (providing details of capital costs and reduced environmental impacts) to Enterprise Ireland for eligibility review in advance of application.

•  Circular economy systems - LEO to submit project outline to Enterprise Ireland providing details of capital costs and reduced environmental impacts for eligibility review in advance of application.

• Sustainable packaging equipment/technology - LEO to submit project outline providing details of capital costs and reduced environmental impacts to Enterprise Ireland for eligibility review in advance of application.

• Note: Replacement/upgrade/new technologies and equipment for which the investment is applied for should meet the new criteria of the SEAI Triple E register if within the Triple E register scope. When the new Triple E register platform is operational, technologies and equipment in scope should be listed on the Triple E register. If not in scope, evidence is required to show improved energy efficiency and, if applicable, other reduced environmental impacts.
• All works shall be carried out in accordance with the provisions of all relevant statutes, regulations and byelaws, and the onus of obtaining all consents, permissions, etc. including planning permission, consent to entry on, or interference with, land, other property or right of any other person or persons, rests on the company.

Ineligible Costs

• Solar panels; a Solar PV grant is available under SEAI Non-Domestic Microgen Scheme
• Biomass and biogas boilers
• Building energy upgrades’, E.g., heat pump for space heating, insulation, pumps, heat recovery on ventilation systems
• Insulation
• Waste treatment systems for regulatory purposes  
• Activities related to fossil fuel e.g., fossil fuel condenser boiler
• Mobile assets such as electric forklifts, air compressors etc.

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 €750 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/