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The carbon challenge provides a huge opportunity for Irish business

1. The EXCEED grant scheme is for businesses that are designing an energy investment project.
   Grant support of up to €1 million per project is available.
2. There is also a grant available, of up to 30%, for installing renewable heating systems such as
   heat pumps.
3. If your energy bill exceeds €250,000 per annum, there are grants of between €15,000 and
   €37,000 for feasibility studies and project planning.
4. Finally, there are project planning grants available for a variety of options whereby you can
   mitigate risk by using an Energy Contract approach with a third party. There is usually a
   risk/reward dynamic in each type of contract i.e. the more risk you want to transfer to a
   third party the more it will reduce the reward to your business in the short term. It can also
   mean your investment comes off the balance sheet which can be an attractive option for
   some businesses. The Energy Contracting approach normally comes in three forms.
   • Energy Performance Related Payment (EPRP) A contractor undertakes energy efficiency
   works and guarantees the energy savings for an agreed fee. If savings fall short of
   expectations, the contractor loses a part of their fee.
   • Energy Performance Contract: A contractor installs energy-efficient works and through the
   contract, guarantees savings. The client pays the contractor from these savings over a
   number of years. If savings fall short, the contractor covers the difference.
   • An Energy Services Company (ESCO) installs works and supplies energy (usually electricity or
   heat) to a particular point at the client/host’s facility. The ESCO is paid for the quantity of
   energy supplied over the term of the contract.
   • Local Energy Supply Contract (LESC) An Energy Services Company (ESCO) installs works and
   supplies energy (usually electricity or heat) to a particular point at the client/host’s facility.
   The ESCO is paid for the quantity of energy supplied over the term of the contract.
   
   There are many options available. The question is what suits your business at a given time. On any
   ROI analysis, the savings that will accrue from the energy cost reductions should be first and
   foremost in your deliberations. Works can be scheduled over a multi-annual basis to maximize
   grants and tax breaks. Once you start out on this journey it gains a momentum of its own. Can you
   afford not to?
   
   
   If you have any questions, feel free to give us a call at Green Harbour 046 9750004 or write at conor@greenharbour.ie