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INTRODUCTION

There is an overarching national & international policy framework in place designed towards decarbonising the built environment. The main channels of delivering change are:

  • Energy efficiency – using fabric upgrades to reduce heat loss & using more efficient heat sources
  • Energy management – using low-cost measures to optimise energy use through control devices and/or behavioural change
  • Fuel switching – switching from high carbon-intensity to low carbon-intensity fuels.

It is estimated that there are 109,000 commercial buildings in Ireland, broken down as follows:

  •  Office 42,000
  •  Retail 40,000
  •  Restaurant/Pub 16,000
  •  Warehouse 7,000
  •  Hotel 4,000

Of the above number, the vast majority (96%) are considered to be small. Therefore, there is huge potential for energy conservation & decarbonisation of buildings in the SME sector. According to a 2015 survey & report by SEAI on commercial buildings “Ireland has a relatively unsophisticated commercial buildings stock, and a high incidence of buildings in which basic upgrades could lead to significant energy savings”

There are multiple cost-effective routes to reduction in energy consumption in this sector. Some of the measures are behavioural (zero cost) such as enabling standby features on PC’s & monitors; also ensuring lights are not turned on unnecessarily. Other measures with negative lifetime costs include use of energy efficiency appliances, draught-proofing, roof & wall insulation, replacement glazing & energy efficient lighting.

NATIONAL OVERVIEW

Key national policy drivers towards improving energy performance in the commercial are as follows:

Building Regulations.

The new Nearly Zero Energy Building (NZEB) Building Regulation will require that all new buildings, that are occupied by end of 2020 & commenced after beginning of 2019, must be completed to this standard. In effect, this means that all new buildings currently at design stage must adhere to these requirements. Requirements include a 60% improvement in energy performance over 2008 Building regulations, as well as a requirement to provide 20% of primary energy use from renewable sources (this can be relaxed to 10% in some situations where a higher energy performance is demonstrated).

NZEB requirements must also be met for existing buildings, where 25% or more of the surface area of the building undergoes renovation. By way of example: if a wall insulation upgrade is being carried out, then upgrade of heating/cooling/ventilation/lighting installations (that are more than 15 years old) must also be included in the overall upgrade.

Commercial sector retrofit/SME programme

The SEAI-funded BEC programme (now known as Better Energy Community Grants) funds energy saving projects across a number of sectors including private commercial organisations – the grant value is typically 30%, though sometimes more. In addition, SEAI offer financial & mentoring support in the Excellence in Energy Efficient Design (EXCEED) pilot programme.

Accelerated Capital Allowances

This is a tax incentive scheme that enables the full deduction of expenditure of eligible energy-efficient equipment against profits in the year that the expenditure was incurred. This enables a significant tax payment reduction in year, rather than spread out over am 8 year period.

Energy Efficiency Obligation Scheme (EEOS)

Under the obligation of large Energy Suppliers to generate energy savings, these companies are offering to offer financial & other supports to businesses implementing energy saving projects.

SUPPORT SCHEME FOR ENERGY AUDITS

One of the first steps towards a more energy-efficient & profitable pathway for a business involves conducting an energy audit. This will allow a clear identification of the current energy consumption patterns & costs, as well as identifying short, medium & long-term energy cost saving opportunities.

SEAI provides a €2,000 voucher to SME (subject to Ts & Cs) that has an annual energy spend (excluding transport) of €10,000. In many or even most cases, this voucher will cover the entire cost of the audit!   

For any business contemplating an energy upgrade of their property, please Contact Us with a view to carrying out an energy audit.

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