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Sector innovation

Innovation in energy and renewables

The sector includes renewable generation, battery and storage technology, grid services, energy management, hydrogen, bioenergy, low-carbon infrastructure, monitoring systems and businesses improving industrial energy performance. Many projects involve uncertainty in performance, reliability, integration, efficiency, safety, data or scale-up.

This can include work across:

  • Renewable generation technology and system design
  • Battery, storage and power management systems
  • Grid integration, balancing and demand response
  • Hydrogen, bioenergy and low-carbon process development
  • Energy monitoring, sensors and control systems
  • Efficiency, heat recovery and resource reduction
  • Prototype design, testing and technical validation
  • Field trials, pilot installations and scale-up
  • Safety, reliability and performance improvement
  • Data platforms, forecasting and optimisation tools
  • Innovation grants and R&D Capital Allowances readiness

For R&D Tax Credit purposes, the key question is not whether the project supports sustainability. It is whether competent professionals faced scientific or technological uncertainty and carried out systematic work to resolve it. Get on a call with a member of our team to gain clarity on how your project qualifies. 

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Energy & Renewables innovation activity that may qualify for R&D Tax Credits

Qualifying R&D

How energy and renewables companies can qualify for R&D Tax Credits

An energy or renewables company may qualify where it seeks a scientific or technological advancement and has to resolve uncertainty that could not be readily solved using existing knowledge, standard equipment, known software or routine engineering practice.

  • Developing renewable generation technology Generation projects may qualify where the team is resolving uncertainty around performance, reliability, control, materials, environmental conditions or system design.
  • Improving storage or power management Storage, battery and power management work may qualify where technical uncertainty exists around efficiency, degradation, safety, control logic or operating conditions.
  • Solving grid integration challenges Grid, balancing and demand response projects can qualify where standard approaches cannot meet the required performance, resilience, interoperability or control requirements.
  • Building monitoring or control systems Sensors, data platforms and control systems may qualify where uncertainty exists around data quality, forecasting, integration, automation or performance in real-world conditions.
  • Running pilots or field trials Pilot and field-trial work may support R&D where it is designed to resolve scientific or technological uncertainty, not just prove a commercial installation.
  • Creating testing or validation methods New measurement, simulation, monitoring or validation methods may qualify where they are needed to prove or refine an energy technology solution.
Discuss your R&D activity

A note from Kirsten

For energy and renewables R&D claims, evidence and clarity matter.

Energy claims can be complex because operational improvement, commercial deployment and genuine R&D often sit close together. Our role is to help explain the uncertainty, separate qualifying activity from routine implementation, and connect technical evidence to the claim.

Kirsten Winsryg, Irish Lead, InnoFund at InnoFund

Kirsten Winsryg

Irish Lead, InnoFund

  • 20+ years in corporate accountancy, grant and audit management.
  • Specialist support for Irish R&D Tax Credit claims.
  • Technical, financial and Revenue-side compliance support for innovation funding claims.
Speak to Kirsten Winsryg

Client experience

Energy & Renewables Companies Recommend InnoFund

Practical support from a multidisciplinary team that understands both the technical work and the claim.

“Would highly recommend, they know their stuff! They assisted greatly with an R&D claim rejection by HMRC.”

Steven Potts

Finance Director, Sigma Polymers

“Excellent from start to finish, lovely team and a great result. Highly recommended.”

Sam Collins

General Manager, Terra Farmer

Clear boundaries

Not every energy or renewables project qualifies for R&D Tax Credits.

Routine installation, standard deployment and normal operational improvement will usually fall outside the scope of R&D.

Examples of work that may not qualify include:

  • Standard installation of proven equipment
  • Routine maintenance, monitoring or operational support
  • Commercial roll-out with no technical uncertainty
  • Simple adoption of off-the-shelf software or hardware
  • Normal energy audits or feasibility studies alone
  • Known efficiency projects based on existing best practice
  • Compliance, planning or grid paperwork without technical development

Not every project meets the criteria for R&D Tax Credits. Find out where your project stands.

Eligible expenditure

Eligible R&D costs for energy and renewables businesses

Energy and renewables businesses may be able to include a range of qualifying costs where they relate directly to eligible R&D activity, including:

  • Employee costs for engineers, developers, scientists, technicians and technical leads
  • Employer PRSI, pension contributions and other relevant employment costs
  • Subcontracted R&D, subject to the relevant rules and limits
  • Prototype equipment, components, test rigs, pilot materials and consumables
  • Software, data, sensors and control systems used directly in qualifying R&D
  • Relevant overheads and apportionments where properly evidenced

The correct treatment of pilots, prototypes, subcontractors, grants, staff apportionment and capital expenditure is especially important for energy claims. InnoFund reviews the technical and financial position together so the claim is accurate and defensible.

Evidence & scrutiny

Revenue risk areas for energy and renewables R&D claims

Revenue may ask a company to explain what scientific or technological advancement was sought, what uncertainty existed and what evidence supports the claim. Energy claims should be more than a list of sustainability benefits, installations or commercial outcomes.

Common risk areas include:

  • Claims focused on environmental benefit rather than scientific or technological uncertainty
  • Weak explanation of the baseline technology or system design
  • Poor separation between routine deployment and qualifying R&D
  • Insufficient records of tests, failures, iterations or decision points
  • Over-claiming standard installation, commissioning or monitoring activity
  • Unclear treatment of subcontractors, grants, pilots, equipment or consumables

Connect directly with our specialists who review and assess prospective innovative projects.

Assess your project

Your next step

Do not guess. Know whether your energy or renewables work qualifies.

Have an energy or renewables project you want to discuss. InnoFund helps separate routine implementation from genuine R&D so claims are accurate, compliant and properly evidenced.

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Energy & Renewables innovation activity that may qualify for R&D Tax Credits