Irish SMEs set to drive Ireland's energy transition, with solar leading the weay

New Flogas Sustainability Report reveals strong appetite for solar and renewable electricity, with crisis in the Middle East adding to demand for secure solutions

The report highlights that solar is the top priority for Irish SMEs, with 34% of mid-sized and 31% of small businesses planning to adopt the technology. This appetite for solar is moving rapidly toward reality; nearly half (46%) of mid-sized firms planning to transition expect to have solar panels installed this year. Furthermore, to overcome the financial barriers, 'Solar-as-a-Service' has emerged as a major trend, with 72% of mid-sized companies now considering this model to meet their energy goals.

The research suggests that small and mid-sized Irish businesses may become one of the most influential sector in delivering Ireland’s energy transition. While larger corporates often operate on longer investment timelines, SMEs are showing a stronger appetite for near-term, commercially viable sustainability measures that deliver operational savings, energy resilience and competitive advantage. 

The findings come at a time when solar is playing an increasingly visible role in Ireland’s wider energy transition, particularly at a time of extremely unpredictable energy markets. Analysis by Baringa, commissioned by Wind Energy Ireland, found that solar power in Ireland displaced almost 188 million cubic metres of gas from the generation mix and avoided costs in gas and carbon emissions costs valued at €94 million last year. This underlines the growing role solar can play in helping businesses reduce emissions and exposure to energy market volatility, while enhancing security of energy supply.

The Flogas research highlights a widespread desire among businesses in Ireland to adopt sustainable energy solutions, alongside an urgent need for practical, affordable and clear pathways to implementation.

The nationwide study, conducted among 300 business decision-makers in the Republic of Ireland by iReach Insights on behalf of Flogas, a DCC plc company, confirms that transitioning to renewable energy is now a critical component of their business strategy. Indeed, sustainability is now firmly embedded in corporate strategy with 92% of large businesses and 91% of medium-sized businesses considering it important overall and 61% of large companies describing it as “very important.”

The report reveals a significant untapped appetite for Corporate Power Purchase Agreements (CPPAs), provided businesses are given the right guidance. While awareness of these arrangements remains an obstacle, consideration significantly increases once the mechanics and long-term price certainty of a CPPA are explained. This is particularly evident in the retail and hospitality sectors, where 48% of businesses say they are likely to consider a CPPA. Biomethane remains a niche but emerging option, particularly among larger energy users and manufacturing businesses. The research found that 15% of large businesses already use biomethane or renewable gas, while 26% of Pharma & Manufacturing firms are planning or considering it.

The research also highlights the practical considerations shaping the pace of change for businesses. Upfront cost remains the primary factor influencing decision-making across all business sizes, cited by 62% of respondents. This underlines the importance of clear guidance, trusted advice and greater visibility on long-term value and return on investment. As businesses navigate these decisions, many are seeking expert support to better understand the financial and operational benefits of renewable energy solutions, from solar installations to flexible energy models, ensuring investments deliver both sustainability gains and commercial certainty.

John Rooney, Managing Director at Flogas, commented: “This research shows Irish businesses are motivated and ready to act, particularly given the current uncertain outlook in energy markets, but they are consistently seeking practical, affordable pathways. They're asking, ‘What’s the first step?’ and ‘How do we make this work financially with tangible cost control?’ Flogas deeply understands these challenges. Our role is to provide clarity and expert guidance, helping businesses demystify complex ROI and confidently choose the right energy solutions, secure in the knowledge of Flogas’s robust and reliable supply infrastructure across Ireland. Whether it’s starting simple with renewable electricity, exploring on-site solar, or navigating longer-term energy solutions, our primary focus is making the transition simpler and more achievable for all Irish businesses.”

The Flogas Sustainability Report also unveils sector-specific insights, revealing divergent priorities and challenges. For example, while Pharma & Manufacturing businesses show strong consideration for CPPAs (75%), Public Sector / Government / Semi-State entities are prioritising LED lighting (60%). These tailored findings demonstrate how businesses across Ireland are navigating their unique sustainability journeys. 

Ken O’Byrne, Commercial Director of Flogas, added: “One of the most interesting findings in this research is the leadership we’re now seeing from Ireland’s SME community. Traditionally, people assumed large corporates would move first on sustainability, but SMEs are increasingly the businesses taking practical action now — particularly where they can see a clear commercial return, energy security benefit or competitive advantage.

They are under growing pressure from customers, supply chains and international partners, but they’re also proving highly pragmatic. They want solutions that are commercially realistic, flexible and capable of delivering savings in the near term. That’s why we’re seeing such strong momentum behind areas like solar, renewable electricity and Solar-as-a-Service.”

Charles Coyle, Managing Director of Emerald Park said; “With Flogas powering Emerald Park, including renewable sources such as solar and EV charging, we are excited to build a more sustainable future for the park, making sustainability not just a responsibility, but a smart business decision. Our investment in solar panels is projected to save Emerald Park over €30,000 annually in energy costs, and potentially as much as €1 million over the panels’  lifespan, with a projected payback period of approximately five years."

Flogas provides businesses of all sizes with essential, expert support for their sustainable energy journey. For more information – www.flogas.ie