Jake O’Connell from SE Systems outlines how businesses should navigate their energy retrofits.
With energy costs continuing to challenge businesses and sustainability targets becoming increasingly important, many small and medium-sized enterprises (SMEs) are beginning to explore energy retrofits.
According to new Amárach research, two-in-five SMEs had taken steps such as insulating their buildings or changing their windows in the past two years to improve their energy efficiency, and more than four in five businesses (85%) say sustainability is important to the day-to-day running of their business.
“While the transition to more efficient energy systems may initially appear complex, breaking the journey into manageable stages – assessment, design, planning, funding and implementation – makes the process far more accessible”
However, while the benefits are widely recognised, the process can often feel complex or difficult to navigate.
Understanding the typical steps involved can help demystify the journey and highlight the practical supports available to businesses across Ireland.
Understanding where energy is used
For most organisations, the first step in improving energy performance is gaining a clear understanding of how energy is currently consumed within the building or facility. This is typically done through an energy audit.
An energy audit provides a detailed analysis of energy usage across heating systems, lighting, equipment and operational processes. It identifies inefficiencies and highlights areas where improvements can be made. Crucially, the outcome of the audit is not simply a list of problems but a roadmap outlining potential energy-saving measures and their expected impact.
For SMEs in Ireland, financial assistance is available through the Sustainable Energy Authority of Ireland (SEAI). Its Energy Audit Voucher Scheme provides support towards the cost of carrying out a professional energy audit, helping businesses take their first step toward improved energy efficiency.
Identifying the right retrofit measures
Once energy consumption patterns are understood, businesses can begin to identify the most suitable retrofit measures. The right solution will vary depending on the type of building, the nature of operations and the existing energy infrastructure.
In many cases, improvements begin with the building fabric itself. Upgrading insulation in roofs, walls or floors can significantly reduce heat loss and lower overall heating demand.
Heating systems are another major focus area. Many commercial buildings still rely on fossil-fuel-based systems such as oil or gas boilers. Upgrading or replacing these systems with more efficient technologies, such as heat pump solutions, can significantly reduce both energy consumption and carbon emissions.
Renewable energy technologies are also becoming increasingly common. Solar photovoltaic (PV) panels allow businesses to generate electricity on-site, reducing reliance on grid energy while lowering long-term operational costs.
Alongside larger upgrades, smaller efficiency measures can also deliver meaningful results. Switching to LED lighting, installing smart controls, upgrading refrigeration equipment or improving motors and pumps can all contribute to lower energy use and reduced operating costs. For example, a national heat study from the SEAI found that more efficient refrigeration gave you a cost saving of 24%, while more efficient lighting gave you a saving of 19% within the first year.
Funding and supports for SMEs
Cost is often one of the main barriers for businesses considering energy upgrades. However, a range of supports are available to help offset upfront investment.
Through the SEAI, SMEs can access various programmes, including technical design assistance support (up to 50% support) and capital grants through the Communities Energy Grant (CEG) scheme and the Business Energy Supports Scheme.
These schemes are designed to encourage businesses to adopt more efficient technologies while reducing the financial risk associated with capital investment.
From planning to implementation
Once potential improvements have been identified and funding options explored, businesses can move into the implementation stage. This typically involves detailed system design and project planning, contractor selection and scheduling works to minimise disruption to daily operations.
Following an energy audit, a structured roadmap is usually developed outlining priority projects, considerations and timelines. Grant applications may take several weeks to process, and once approved, organisations generally have a defined period – often up to 12 months – to complete works and claim funding.
Taking the first step
For SMEs considering energy retrofits, the most important step is simply getting started. Reliable information and guidance are available through organisations such as the SEAI and Local Enterprise Offices, which provide advice on grants, energy audits and practical next steps.
While the transition to more efficient energy systems may initially appear complex, breaking the journey into manageable stages – assessment, design, planning, funding and implementation – makes the process far more accessible.
For many businesses, improving energy efficiency ultimately delivers more than environmental benefits. Lower energy bills, improved building performance and greater resilience to future energy price fluctuations make retrofitting an increasingly attractive investment for Ireland’s SME sector.
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