Subsidy II (reconstruction grant for small residences)

Small residences’ EE improvement conditions

Investment is given to support renovation and a variety of energy efficiency-related activities in small private residences buildings that have been built before the year 2000. The goals of the measure are to increase energy efficiency and better indoor climate of small residences, facilitate deployment of renewable energy and bring down costs for the owners as well as reduce emissions (Art 2, 3 Small residences’ EE improvement conditions).
For RES H&C, support is available for:
• replacement or renovation of the heating system;
• construction, replacement or renovation of the ventilation system;
• purchase and installation of a renewable energy production device, together with the equipment necessary to transform energy and store the produced energy;
• purchase and installation of waste water heat recovery equipment (Art 5, Small residences’ EE improvement conditions).
For heat pumps, in order to be eligible for support, an energy efficiency class of at least A ++ is required (Art 6, Small residences’ EE improvement conditions).
In 2020, the budget of the measure was EUR 1.3 million. For 2021, the receipt of applications has been suspended as of May 2021.

Generally, the proportion of the grant is 30% of eligible expenses, with a maximum amount of support EUR 20,000 per small residence.
For a thorough construction, the subsidy is either 30% (with a maximum support of EUR 30,000); 40% (and max EUR 40,000); or 50% (and max EUR 50,000) of the eligible costs of reconstruction works and activities. The share of the subsidy allocated depends on the location of the small residence, 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 (Art 9 Small residences’ EE improvement conditions).

The measure is addressed at private persons who own the small residence. At the moment of submitting the application, the address of the applicant’s permanent residence has to coincide with the address of the small residence that would be reconstructed, except for a summer house or garden house (Art 11 Small residences’ EE improvement conditions).

Applying for the subsidy is done through the form of application rounds to KredEx, a foundation set up by the Ministry of Economic Affairs and Communications.
After KredEx has announced an application round, someone wanting to benefit from the subsidy needs to submit a digital application. Applications are accepted on a rolling basis, until the expiry of the subsidy budget. The application needs to contain the reconstruction project, at least three price quotations from independent enterprises for the works, as well as the energy consumption data form and the confirmation of sufficient funds to cover the necessary share of self-financing.
• Following the approval of the subsidy application, the deadline for performing the construction activities is up to 12 months. 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.

• MKM
• KredEx