Flogas report finds strong demand for solar and renewable solutions as businesses seek cost control and energy security.
SMEs across Ireland are stepping into a central role in the country’s energy transition, with solar power emerging as the leading investment priority, according to a new Sustainability Report from Flogas.
The nationwide study of 300 business decision-makers, conducted by iReach Insights on behalf of the DCC plc-owned energy provider, points to a growing urgency among firms to adopt practical and commercially viable sustainability measures.
“Irish businesses are motivated and ready to act, particularly given the current uncertain outlook in energy markets, but they are consistently seeking practical, affordable pathways”
With global geopolitical instability contributing to volatile energy markets, many companies are turning their attention to solutions that offer both cost predictability and supply security.
Solar energy tops the list of planned investments. The report shows that 34% of mid-sized businesses and 31% of smaller firms intend to adopt solar technology. Adoption is also moving quickly from intent to execution, with 46% of mid-sized companies planning to install solar panels within the year.
The appeal is not limited to environmental considerations. Businesses are increasingly focused on tangible financial returns and operational resilience. New models such as Solar-as-a-Service are gaining traction, with 72% of mid-sized companies now considering this approach as a way to overcome capital constraints while accelerating deployment.
Influential drivers
The findings suggest SMEs may become one of the most influential drivers of Ireland’s broader energy transition. Unlike larger corporates, which often face longer investment cycles, smaller firms are acting decisively where solutions are straightforward and commercially justified.
John Rooney, managing director at Flogas, said the shift reflects a strong appetite for clarity and practical implementation.
“This research shows Irish businesses are motivated and ready to act, particularly given the current uncertain outlook in energy markets, but they are consistently seeking practical, affordable pathways. They’re asking, ‘What’s the first step?’ and ‘How do we make this work financially with tangible cost control?’”
He added that simplifying the transition is critical to unlocking further progress.
“Our role is to provide clarity and expert guidance, helping businesses demystify complex ROI and confidently choose the right energy solutions, secure in the knowledge of Flogas’s robust and reliable supply infrastructure across Ireland. Whether it’s starting simple with renewable electricity, exploring on-site solar, or navigating longer-term energy solutions, our primary focus is making the transition simpler and more achievable for all Irish businesses.”
The report’s findings come at a time when solar energy is increasing its contribution to Ireland’s national energy mix.
Analysis by Baringa, commissioned by Wind Energy Ireland, found that solar generation displaced almost 188 million cubic metres of gas and avoided energy and carbon costs worth €94 million in the past year. For businesses, this highlights the dual benefit of emissions reduction and protection from energy price volatility.
Despite strong momentum, barriers remain. Upfront cost is cited by 62% of respondents as the main factor influencing investment decisions. This underscores the need for clearer guidance and improved access to financing options that can demonstrate long-term value.
Beyond solar, Corporate Power Purchase Agreements are beginning to attract interest, particularly once businesses understand their potential for long-term price certainty. While initial awareness remains limited, uptake rises significantly after explanation. In retail and hospitality, 48% of firms say they would consider entering into such agreements.
Biomethane is also gaining attention, although uptake remains relatively niche. The research indicates that 15% of large businesses are already using renewable gas, with a further 26% of firms in the pharmaceutical and manufacturing sectors considering its adoption.
Sector-specific differences are evident across the report. Pharmaceutical and manufacturing companies show strong engagement with CPPAs, with 75% expressing interest. Meanwhile, public sector and semi-state organisations are prioritising energy efficiency measures such as LED lighting, cited by 60% of respondents.
Practical action
Ken O’Byrne, commercial director at Flogas, said the findings reflect a broader shift in how sustainability is being approached across the business landscape.
“One of the most interesting findings in this research is the leadership we’re now seeing from Ireland’s SME community. Traditionally, people assumed large corporates would move first on sustainability, but SMEs are increasingly the businesses taking practical action now, particularly where they can see a clear commercial return, energy security benefit or competitive advantage.”
He added that external pressures are also playing a role. “They are under growing pressure from customers, supply chains and international partners, but they’re also proving highly pragmatic. They want solutions that are commercially realistic, flexible and capable of delivering savings in the near term. That’s why we’re seeing such strong momentum behind areas like solar, renewable electricity and Solar-as-a-Service.”
Real-world examples of these investments are already delivering measurable returns. At Emerald Park, solar installations supported by Flogas are projected to reduce annual energy costs by more than €30,000.
Charles Coyle, managing director of Emerald Park, described the initiative as both sustainable and strategic.
“With Flogas powering Emerald Park, including renewable sources such as solar and EV charging, we are excited to build a more sustainable future for the park, making sustainability not just a responsibility, but a smart business decision. Our investment in solar panels is projected to save Emerald Park over €30,000 annually in energy costs, and potentially as much as €1 million over the panels’ lifespan, with a projected payback period of approximately five years.”
Overall, the report points to a business community that is increasingly engaged with the energy transition, motivated by a combination of economic, environmental and strategic considerations. For SMEs in particular, the focus remains firmly on solutions that can deliver immediate value while building longer-term resilience.
Image at top: Ken O’Byrne, Commercial Director at Flogas, Mary Rossiter, Marketing Manager at Flogas, Lisa Corrigan, Marketing Director at Flogas, John Rooney, Managing Director at Flogas. Photo Chris Bellew / Fennell Photography
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