A large portion of small businesses in Ireland are going to invest in solar panels to address rising energy costs which are putting them at risk.

A survey of the biggest business risk as perceived by Irish SMEs carried out by the Strategic Banking Corporation of Ireland (SBCI) found that staffing, energy costs and access to finance are the biggest concerns for businesses.

Of those who responded to the survey, 48% said that transport and energy costs are a risk to their business.

The only greater concern was staffing, with 59% saying that access to skilled workers is one of the largest risks to their businesses. Access to finance was also cited as a risk by 44% of those surveyed.

The survey also found that businesses have a strong and growing preference for energy-efficient investments such as solar panels and electric vehicles which will help to reduce their energy costs.

Of the SMEs which are planning to invest in energy efficient measures in the next three years, some 59% said that they intend to invest in solar panels.

More energy efficient lighting is a planned investment for 46% of businesses, and 42% intend to invest in electric vehicles.  

Reducing energy costs is the main goal of businesses investing in energy efficiency, with 29% stating that this is their priority.

Reducing carbon emissions was cited as a goal by 26% of respondents, 16% said they want to make their businesses more sustainable, and 13% said that they hope to improve their brand image and reputation with customers.

The SBCI is the state’s promotion financial institution, and has channelled over €4bn in low-cost, flexible funding to over 60,000 Irish SMEs to date.

“We’ve developed tailored funding programmes to help SMEs invest in addressing the big risks they face and to give them a platform for growing, creating jobs and becoming more sustainable.”

“We’ll continue to work closely with SMEs to give them even better financing options on their journey.”

The SBCI is also responsible for the Home Energy Upgrade Loan Scheme, which provides low interest loans of up to €75,000 for households carrying out energy efficiency home improvements.

The scheme offers unsecured loans to aid with the costs of any measures which are supported by SEAI grants such as installing solar panels or adding insulation to a home.