Irish small- and medium-sized enterprises are set to play a significant role in furthering the country’s energy transition, a new report by energy supplier Flogas has found.
Flogas surveyed 300 business decision-makers across Ireland as part of its inaugural Sustainability Report, and found that firms are increasingly prioritising renewable energy solutions, in order to protect themselves from market volatility and achieve lower costs and energy security.
Solar investment
Around a third of Irish SMEs are turning to solar energy as their sustainability investment of choice, with 34% of mid-sized businesses and 31% of smaller firms planning to adopt solar technology. Of the mid-sized businesses planning to adopt solar, some 46% expect to make an investment in this field during 2026.
To overcome the financial barriers associated with solar adoption, some 72% of mid-sized firms are considering a solar-as-a-service arrangement.
Elsewhere, the report notes growing interest in corporate power purchase agreements (CPPAs) – while overall awareness about CPPAs remains relatively low, some sectors are more attuned than others, with close to half (48%) of firms in the retail and hospitality sectors saying they would be likely to consider a CPPA.
Across all business segments, more than three fifths (62%) of firms cited upfront investment as the primary factor influencing sustainability decision-making, the study found.
“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,” commented John Rooney, managing director, Flogas.
The report also found that other novel energy sources are also gaining attention, with 15% of larger firms currently utilising biomethane or renewable gas in their operations, and more than a quarter (26%) of companies in the pharmaceutical and manufacturing sectors either planning to adopt them or considering doing so.
SME leadership
“One of the most interesting findings in this research is the leadership we’re now seeing from Ireland’s SME community,” added Ken O’Byrne, commercial director of Flogas. “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.” Read more here.
Pictured at the launch of the Flogas Sustainability Report 2026 in Dublin (L-R): Lisa Corrigan, marketing director at Flogas; John Rooney, managing director at Flogas; Ken O’Byrne, commercial director at Flogas; Mary Rossiter, and marketing manager at Flogas. Photographed by Chris Bellew, Fennell Photography.
