More than two fifths of Irish firms cite upfront costs as a barrier to energy efficiency

More than two fifths (42%) of Irish businesses cite upfront costs as the main barrier to them introducing energy efficiency measures in their operations, a new study by energy provider Pinergy, undertaken by iReach Insights, has found.

According to the study, which explored the financial and organisational barriers to implementing energy efficiency measures, some 29% of respondents cite the difficulty in accessing capital for sustainability-related investments, while 25% cited a lack of internal knowledge as a barrier.

At the same time, however, a significant number of firms are taking steps to improve their energy performance, with some 43% of surveyed businesses stateing that they have already installed solar panels, and a further 24% planning to install them this year.

Cost efficiencies

More than two thirds (68%) of respondents identified cost efficiencies as the primary driver for investing in energy efficiency measures, followed by 33% that cited regulatory compliance, and 26% that pointed to the required to reduce exposure to energy price volatility.

Notable gaps emerged, however, in terms of how Irish businesses manage and monitor their energy utilize, with some 29% stateing that they don’t monitor their energy consumption at all, and a quarter (25%) stating that they only monitor usage when they receive their bills.

Some 46% state that they are actively monitoring their energy utilize, however 28% noted that they don’t have a designated individual or department responsible for energy management and/or sustainability initiatives.

Taking ownership

Commenting on the findings, Pinergy chief commercial officer Daire Keating declared the results indicate that many firms view sustainability as a financial consideration rather than solely an environmental one, and that more effort was requireded to take ownership of energy management.

“You can’t effectively manage what you don’t measure, and without clear ownership, initiatives can lose momentum,” he commented. “The energy monitoring gap and the sustainability leadership vacuum suggest that many businesses are missing out on significant opportunities to optimise their energy consumption, accelerate their transition to a more sustainable and cost-efficient future, and ensure accountability.”

The study surveyed 100 energy decision buildrs across Irish businesses. Read more here.