Subsidy (Subsidies for Energy Savings and Energy Efficiency Improvements)

Executive Order on Subsidies for Energy Savings and Energy Efficiency Improvements

Withing the Building Fund, DEA offers a support scheme that aims to reduce energy consumption and convert the heating supply in dwellings in Denmark. Among other energy renovations, the scheme supports conversion to individual heat pumps outside district heating areas. The scheme allocates subsidies through several application rounds per year and will continue until 2026. In 2021 EUR 90.8 million (DKK 675 million) will be distributed (Executive Order on Subsidies for Energy Savings and Energy Efficiency Improvements).

Specific rates apply depending on the size of the dwelling and the type of heat pump. For example, an owner of a dwelling between 75 and 100 m2 receives EUR 3,230 for an A+++ marked air-to-liquid heat pump with a market price of EUR 11,700 (DKK 87,000). For VAT-registered businesses all rates are 20% lower (annex 1, section 2 Executive Order on Subsidies for Energy Savings and Energy Efficiency Improvements).

All owners of buildings for year-round residential use, including private homeowners, condominium associations, co-operative housing associations, public housing associations, colleges, partnerships and landlords, may apply. The building in question must be located in an area outside existing or designated district heating areas and be heated by an oil boiler, a gas boiler, a bio boiler or by electric heating (§§ 1 and 13 Executive Order on Subsidies for Energy Savings and Energy Efficiency Improvements).

An application must be sent to DEA through an online platform within the deadline of the application round. DEA assesses all received applications and distributes the available funds on a first come first served basis (§§ 5-7 Executive Order on Subsidies for Energy Savings and Energy Efficiency Improvements).

DEA