Subsidy I (apartment building reconstruction grant)

Apartment buildings reconstruction conditions
KredEx – Apartment building renovation grant

Investment is given to support renovation and a variety of energy efficiency-related activities in apartment buildings that have been built before the year 1993 and belong to apartment associations or to local municipalities. The goals of the measure are to increase energy efficiency in the housing sector, bring down costs for apartment owners and reduce emissions (Apartment buildings reconstruction conditions).
Regarding renewable energy sources investment support is available for purchase and installation of equipment necessary for the use of renewable energy in an apartment building and replacing the heating system of the apartment building (Art 8 Apartment buildings reconstruction conditions).
As the measure is financed by EU structural funds, the eligibility period for the measure ends on 31 August 2023.

The subsidy is either 30%, 40% or 50% of the eligible costs of reconstruction works and activities. The share of the subsidy allocated depends on the location of the apartment building, with buildings in the two largest towns (Tallinn and Tartu) eligible for the lowest share (30%) and more rural areas eligible for a higher share of support. The maximum amount of support per project is up to EUR 1 million (Art 13, Art 17 Apartment buildings reconstruction conditions).

The addressees of the measure are apartment associations or local municipalities. At least 80 per cent of the apartments located in one apartment building must be owned by a local municipality unit or at least 5 different natural persons.

Applying for the subsidy is done through the form of annual application rounds to KredEx, a foundation set up by the Ministry of Economic Affairs and Communications.
After KredEx has announced an application round, a digital application, outlining details such as the main reconstruction plan and the calculation for energy performance has to be submitted. Applications are accepted on a rolling basis, until the expiry of the subsidy budget. The building design documentation submitted when applying for the grant will then undergo an expert assessment organised and paid for by KredEx. After KredEx’ expert assessment, bidding for the renovation works will be organised through the Public Procurement Register.
KredEx will disburse the grant or make the last payment of the grant on the basis of a statement confirming the completion of the renovation works, provided that the implementation of the project activities is demonstrated. The grant will be disbursed on the basis of the payment request based on the actual costs. Costs must be proved by invoices, statements of acceptance of works, and contracts. The grant may be applied for disbursement in two separate instalments (KredEx – Apartment building renovation grant).
Overall, when assessing the applications, two main criteria are looked at: 1) the volume of energy savings in the apartment building; 2) the size of the net area of the apartment building (Art. 24, Apartment buildings reconstruction conditions).

MKM
KredEx