What is the LEO Energy Efficiency Grant?
The LEO Energy Efficiency Grant is a financial support scheme designed to help small businesses invest in technologies and equipment that make their operations more energy efficient. The goal is to reduce a business's environmental impact, which in turn leads to significant cost savings and increased resilience.
What Is the Energy Efficiency Grant Scheme in Ireland?
The LEO Energy Efficiency Grant is a financial aid scheme created to help small businesses acquire and install technology and equipment that boosts their operational energy efficiency.
The primary objective is to decrease a company's environmental footprint, which subsequently results in substantial cost savings and enhanced long-term stability.
This grant is typically awarded to businesses that have completed a Green for Micro or GreenStart report, or a recent energy audit from a registered SEAI (Sustainable Energy Authority of Ireland) auditor.
This first step ensures that any investment made is strategic and based on a professional assessment of your business's needs.
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Who Can Apply for the LEO Energy Efficiency Grant?
The grant is specifically targeted at small enterprises that meet a set of specific criteria.
To be eligible, your business must:
- Be a Small Enterprise: This is defined as a business with between 1 and 50 employees.
- Have an Existing Premises: You must own or have a lease agreement (with at least 12 months remaining) for a commercially rateable business premises where the investment will be made.
- Be a Registered Business: You must be established, registered, and operating within the area of the Local Enterprise Office you are applying to.
- Meet Financial Requirements: Your business must have been trading for at least six months with an annual turnover of over €30,000.
- Not Be an Existing Client of Enterprise Ireland or IDA: This grant is for smaller businesses that are not already receiving support from these national agencies.
- Have an Energy/Sustainability Report: You must have completed a Green for Micro, GreenStart, or an SEAI energy audit. This is the most critical prerequisite, as the grant funds measures that are recommended in these reports.
It's important to note that certain sectors are generally ineligible, including primary agriculture, fisheries, coal, and steel.
What is The Green for Micro Report?
Before you can apply for the Energy Efficiency Grant, you must undergo a sustainability assessment.
The LEO's offer the Green for Micro programme.
It is a free consultancy service where an expert consultant works with your business for two days to:
- Conduct a Sustainability Audit: They will assess your current business practices, focusing on areas like energy and resource consumption, waste management, and operational processes.
- Identify Opportunities: The consultant will pinpoint practical and actionable steps you can take to become more sustainable and reduce costs.
- Develop an Action Plan: You will receive a tailored report and action plan that outlines specific recommendations for improvements.
This report is the blueprint for your grant application and provides the justification and details for the projects you intend to fund, ensuring the grant is used effectively.
Did You Know?
Ireland has the second-highest price for electricity in the EU, with only Germany being more expensive!
What Can the Energy Efficiency Grant Be Used For?
The grant is intended to fund capital expenditure on equipment and technology that improves your business's energy efficiency.
The key is that the investment must be recommended in your "Green" report or audit and must result in a tangible improvement in energy consumption.
Common eligible costs include:
- Upgrading to More Efficient Equipment: Replacing old, inefficient machinery that is over five years old with newer, more energy-efficient models. This can include anything from industrial ovens and refrigeration units to commercial dishwashers.
- Smart Energy Controls: Installing meters for electricity, gas, or water, and implementing smart controls for heating, cooling, or lighting systems to better manage energy use.
- Heat Recovery Systems: Installing systems that capture and reuse waste heat from your operations.
- Upgrading System Components: This includes items like variable speed drives, which can significantly reduce the energy consumption of pumps and fans.
- LED Lighting: While not a standalone project, LED lighting upgrades are often a key component of a broader package of eligible measures.
- Small-Scale Renewable Energy: In some cases, and subject to a technical assessment, the grant can support small wind or hydro generators.
Below you'll find a full list of what is covered by the programme:
| Covered | Details |
|---|---|
| Meters | Installation costs for electricity, gas, diesel, oil, water, steam, and logger meters. |
| Smart Energy Controls | Systems for managing heating, cooling, lighting, and parasitic loads. |
| LED Lighting | Upgrading to LED lights is covered as part of a larger package of eligible measures. |
| Heat Pumps | Replacement or upgrade to more energy-efficient systems like air, water, or ground source heat pumps for manufacturing processes. |
| Heat Recovery | Systems that recover heat from manufacturing processes. |
| Technology/Equipment Upgrade | Upgrading equipment that is more than five years old to a more energy-efficient version (e.g., refrigeration units, boilers, ovens, dishwashers). |
| Small Wind Turbine & Hydro Generator | Installation of small wind turbines or hydro generators, subject to a technical assessment and local planning permission approval. |
| Energy & Resource Efficient Systems | Investment in systems that improve energy and resource efficiency. |
| Food Waste Systems | Systems for managing food waste, such as anaerobic digestors, which may require specific permits. |
| Water Management Systems | Systems that manage water, requiring a project outline for eligibility review. |
| Circular Economy Systems | Systems that support a circular economy, requiring a project outline for eligibility review. |
| Sustainable Packaging Equipment | Equipment or technology for sustainable packaging, requiring a project outline for eligibility review. |
| Eligible Equipment Costs | The cost of equipment, installation, and commissioning, where the equipment cost must be greater than the installation and commissioning costs. Equipment should meet SEAI Triple E register criteria where applicable. |
What's Not Covered by the Energy Efficiency Grant?
The grant is very specific in what it will fund. It's crucial to understand the exclusions to avoid disappointment.
- Building Energy Upgrades: Measures like insulation, heat pumps for space heating, and solar panels are generally not covered by the LEO grant. These are typically funded by SEAI's schemes, which you will be directed to if your audit recommends them.
- Fossil Fuel Equipment: Upgrades related to fossil fuel-burning systems are ineligible.
- Ineligible Equipment: Mobile assets like electric vehicles, forklifts, or air compressors are not covered.
- Non-Physical Costs: The grant does not cover consultancy fees, training costs, or feasibility studies.
Upgrades not covered include:
| Not Covered | Details |
|---|---|
| Solar panels | These are not covered by this scheme, as a separate Solar PV grant is available under the SEAI Non-Domestic Microgen Scheme. |
| Biomass and biogas boilers | These are generally not covered. Some grants may be available under other schemes (e.g., SEAI's Support Scheme for Renewable Heat). |
| Building energy upgrades | This is a broad category. While some items like heat pumps, insulation, and heat recovery are covered in the first list, others like general insulation may fall under different grant schemes. The specifics depend on the type of upgrade and the program. |
| Insulation | Similar to the above, insulation as a standalone measure may not be covered and is often addressed by separate, more specific grant schemes. |
| Waste treatment for regulatory purposes | This refers to systems that are required to meet legal regulations. These are typically not eligible for funding. |
| Fossil fuel-related activities | This includes equipment like fossil fuel condenser boilers, which are not supported in an effort to promote the shift to renewable and more energy-efficient systems. |
| Mobile assets | Portable equipment such as electric forklifts and air compressors are not eligible for grants. |
How Do I Apply for the Energy Efficiency Grant?
The LEO Energy Efficiency Grant typically provides funding of up to 75% of eligible costs, with a maximum grant amount of €10,000.
The grant represents a good opportunity for businesses to fund projects that they might not have been able to afford otherwise.
The application process is straightforward:
- Contact Your Local LEO: Get in touch with your Local Enterprise Office to discuss your project and confirm your eligibility.
- Complete a Green Report: If you haven't already, avail of the free Green for Micro programme or an SEAI energy audit.
- Complete the Application Form: Your LEO will provide you with the necessary application forms. You will need to submit this along with your "Green" report and a detailed breakdown of your proposed costs.
- Await Approval: Your application will be assessed by the LEO. If approved, you will receive a formal letter of offer outlining the terms and conditions.
- Carry Out the Work: Once you have the letter of offer, you can proceed with your project. You must use an SEAI-registered contractor for any installation or upgrade work.
- Submit a Claim: Upon completion, you will submit a claim form with all the required invoices and proof of payment to receive your grant payment.
For more information and to get started on your application, you should contact the relevant bodies directly.
Your Local Enterprise Office (LEO): There are 31 LEOs across Ireland. Find the contact details for your specific local office by visiting their webpage.
Sustainable Energy Authority of Ireland (SEAI): For general queries or information on grants for larger businesses and homeowners, you can reach out to the SEAI.
- Phone: 01 808 2100
- Email: [email protected]
- Website: www.seai.ie
Are There Other Schemes Similar to the Household Budget Scheme?
In addition to the Household Budget Scheme, there are several other schemes and grants available to homeowners, in particular those considered vulnerable priority customers, to help with energy costs and or home efficiency upgrades.
Schemes available include:
| Scheme | Details |
|---|---|
| Household Benefits Package | Provides support to eligible homeowners for their energy bills and TV licence. |
| Fuel Allowance | A payment scheme that aims to help people in vulnerable situations in Ireland pay for heating during the winter months. |
| Free Electricity Allowance | A monthly electricity allowance paid to recipients of the Household Benefits Package. |
| SEAI Grants Scheme | Offers a range of grants for home improvements, including heating systems and solar panels. |
| Windows and Doors Grant | Eligible households can benefit from funding towards the upgrading of windows and doors. |
| Budget 2025 | The Irish government announces changes to schemes and grants each year, as well as changes in eligibility. |
| Warmer Homes Scheme | Funded by the Sustainable Energy Authority of Ireland (SEAI), the scheme is aimed at providing free home energy upgrades to homeowners who are in receipt of certain social welfare payments. |
Each of the above-mentioned schemes have their own eligibility and application processes, and we recommended visiting the respective pages to get the full details.
Are There Other Ways to Manage My Energy Costs?
Home energy bills and the cost of electricity continue to pose a challenge to household and businesses across Ireland.
In addition to the forementioned schemes and programmes, there are other ways you can manage your energy costs:
- Compare Electricity Prices: By regularly comparing the market and switching every 12 months, you can make sure you're always getting the cheapest rate on the market.
- Compare Electricity Providers: Comparing electricity providers can help you see if your current provider is offering the best discounts, range of prices etc.
- Compare Average Electricity Bills: Compare your annual bill to see if you are paying more than the national average.
- Home Heating: Having your heating system regularly serviced can help maintain its efficiency and reduce your heating bills.
- Insulation: By properly insulating your walls, windows and doors, you can improve the heating efficiency of your home.