The conversation about renewable energy in business has shifted. It used to be about principles, doing the right thing, reducing your carbon footprint, demonstrating environmental responsibility.
Those motivations haven't gone away, but they've been joined by a harder-edged financial case that most Irish businesses are now taking seriously.
Energy costs have been volatile. Fossil fuel prices have been unpredictable. And the range of renewable energy options available to businesses of all sizes has expanded considerably. Working with a renewable energy consultant has become less about aspiration and more about making sound operational decisions with significant long-term financial implications.
Ireland's carbon tax is currently €71 per tonne of CO₂ and is legislated to rise to €100 by 2030. Every tonne of carbon your business emits through fossil fuel use carries an increasing financial cost due to this carbon tax being levied on fuel suppliers who then pass this additional cost onto customers. At the same time, the cost of renewable energy technology, particularly solar PV, has fallen dramatically over the past decade, making on-site generation commercially viable for a much wider range of businesses than was true five years ago.
There's also the supply chain and procurement dimension. Large organisations reporting under the Corporate Sustainability Reporting Directive (CSRD) are scrutinising their Scope 2 emissions, the emissions associated with the electricity they purchase. Switching to renewable electricity, whether through on-site generation or a verified green energy contract, is one of the most direct levers available for reducing reported emissions. Customers who require their suppliers to demonstrate environmental credentials increasingly want to see credible action on energy, not just a commitment.
Ireland's Climate Action Plan commits the country to achieving 80% of electricity generation from renewables by 2030. The policy direction is clear, and businesses that plan their energy transition proactively are better positioned than those that react to rising costs and tightening requirements after the fact.
For many Irish businesses, the starting point for renewable energy is solar photovoltaic (PV) panels installed on their own premises. Commercial solar PV has become a well-established technology, with a reasonably predictable payback period and a straightforward business case for most businesses with suitable roof space or land.
The economics of commercial solar in Ireland have improved significantly. Better panel efficiency, lower installation costs and higher electricity prices mean the simple payback period for well-designed commercial installations is typically in the range of five to eight years, with systems expected to operate for 25 years or more. The electricity generated reduces the amount purchased from the grid, cutting both energy costs and Scope 2 carbon emissions. Pairing PV systems with batteries is also becoming more popular and commercially viable. Batteries allow any excess electricity generated from PV systems to be stored for use e.g. during the evenings. Then can also be used to benefit from lower tariff periods i.e. charging the battery during evening or night time when lower tariffs are typically charged.
For businesses with higher energy demands, other on-site generation technologies may also be worth exploring, biomass boilers, combined heat and power (CHP) systems and in some locations, wind energy. The right technology depends on the nature of the business, its energy consumption profile and the characteristics of the site.
Not every business is in a position to generate its own renewable electricity, whether because of the nature of the premises, lease arrangements, upfront capital constraints or other reasons. For these organisations, the energy procurement route is the most practical path.
A green electricity contract is an energy supply agreement where the supplier provides verified renewable electricity. In Ireland, this is typically evidenced through Guarantees of Origin (GOs). Switching to a verified green electricity contract reduces Scope 2 carbon emissions for reporting purposes and demonstrates a credible commitment to renewable energy without requiring capital investment.
A Power Purchase Agreement (PPA) is a longer-term contract, typically 10 to 20 years, between a business and a renewable energy generator. The business agrees to purchase electricity at a fixed or indexed price directly from the generator. PPAs provide price certainty, a significant advantage in a volatile energy market, and can offer a lower unit cost than standard market contracts over the duration of the agreement. They are well established in larger commercial and industrial energy use, and the market for smaller-scale corporate PPAs is developing in Ireland.
The strongest financial argument for renewable energy is not short-term cost reduction, it's long-term cost stability. Fossil fuel prices are volatile and have demonstrated that volatility repeatedly. Renewable energy, whether from on-site generation or a fixed-price supply agreement, offers a degree of cost predictability that fossil fuels cannot.
For businesses doing financial planning over three, five or ten years, the ability to model energy costs with more confidence has real value. It reduces exposure to energy price spikes, reduces the financial impact of rising carbon taxes, and in the case of on-site generation, eventually provides energy at near-zero marginal cost once the capital investment has been recovered.
The SEAI offers grants and supports for commercial energy efficiency and renewable energy projects in Ireland. Enterprise Ireland's Green Transition Fund also supports businesses investing in decarbonisation, including renewable energy installations. These funding mechanisms can significantly improve the financial case for renewable energy investment and are worth factoring into any assessment.
The options for business renewable energy have multiplied, and so has the complexity of evaluating them. A renewable energy consultant provides independent analysis of which options make most sense for a specific organisation, assessing energy consumption profiles, technology options, available funding, procurement routes and financial returns.
The independence of the advice matters. An energy supplier will recommend their own products. An installer will recommend what they install. A consultant with no stake in the outcome can assess all the options and recommend what's genuinely most appropriate for the business.
Jerome Kerr, Operations Manager at PWS Ireland, describes a relationship that covered both a baseline energy and carbon assessment and a solar PV feasibility study. The feasibility work gave PWS Ireland the independent analysis to understand whether solar investment made sense for their specific operations before any capital was committed, the kind of structured, evidence-first step that avoids costly decisions made on enthusiasm rather than data.
A good renewable energy consultant will also connect the energy transition to the wider sustainability strategy, ensuring that the carbon reductions achieved from switching to renewables are captured in carbon footprinting, reported correctly under the relevant reporting frameworks, and contributing to the organisation's overall sustainability commitments.
Is renewable energy cost effective for businesses in Ireland?
Yes, for most businesses. Commercial solar PV has become cost competitive with grid electricity, with typical payback periods of five to eight years and system lifespans of 25 years or more. Green electricity contracts are available at competitive rates and provide a straightforward way to reduce Scope 2 carbon emissions without capital investment. Rising carbon taxes make the financial case for renewable energy stronger over time, not weaker.
What renewable energy options are available to Irish businesses?
The main options are on-site renewable generation (most commonly solar PV, with wind, biomass and CHP as alternatives depending on site characteristics), green electricity procurement contracts verified through Guarantees of Origin, and Power Purchase Agreements (PPAs) which provide fixed-price long-term supply from a renewable generator. The right option depends on the business's energy profile, premises, capital position and sustainability objectives.
How do organisations transition to renewable power in Ireland?
The process typically starts with an energy audit to understand current consumption patterns and identify efficiency improvements, followed by an assessment of renewable energy options appropriate to the organisation's circumstances. Implementation might involve installing on-site generation, switching to a green electricity contract, or entering a PPA. SEAI and Enterprise Ireland both offer funding supports for business renewable energy projects that can improve the financial case.
What is a Power Purchase Agreement (PPA) and is it suitable for my business?
A PPA is a long-term contract to purchase electricity directly from a renewable energy generator at a fixed or indexed price, typically for 10 to 20 years. It provides price certainty and often a lower unit cost than standard market contracts. PPAs are well suited to businesses with significant and relatively stable electricity consumption, and are increasingly accessible to mid-market Irish businesses.
Does switching to renewable energy reduce my carbon footprint?
Yes. Switching to verified renewable electricity reduces your Scope 2 carbon emissions, the emissions associated with the electricity your business purchases and uses. On-site renewable generation reduces Scope 1 emissions where it replaces fossil fuel use. Both contribute to a reduced carbon footprint and are reflected in formal carbon reporting.
If you'd like an independent assessment of the renewable energy options available to your business and the financial case behind them, talk to the AD Sustainability team.