With the support of KredEx, apartment buildings invested 26 million Euros into renovation within one year

Last year, 202 apartment buildings submitted applications for reconstruction grant to KredEx, of which 193 apartment buildings obtained a positive decision in the amount of 5.82 million Euros. In total, last year apartment buildings invested into renovation 26 million Euros with the help of KredEx renovation grant.

“In comparison to last year, the interest of apartment buildings in reconstruction grant has increased, and more and more buildings are applying for 35% or 25% grants. As the heating prices have increased again, financing terms are still very good and people’s awareness has increased, we are expecting a quick increase of interest in the current year,” said Mirja Adler, head of the Housing and Energy Efficiency Division of KredEx.

From September 2010, when KredEx started accepting applications for reconstruction grant, 261 apartment buildings have submitted applications for the grant in total amount of 7.18 million Euros. 244 apartment buildings have received a positive decision in total amount of 6.37 million Euros.

Apartment buildings have invested a total amount of 31 million Euros into renovation of apartment buildings with the help of KredEx reconstruction grant.

The average expected energy saving of all buildings having received grants is 40%.

It is possible to apply for reconstruction grant of 35%, 25% and 15% from KredEx. The grant is first of all meant to accompany the apartment building renovation loan of KredEx with a favourable interest to decrease the required self-financing rate, but the grant can also be combined with own funds.

The grant limits depend on the level of completeness of reconstruction of the relevant apartment building.

To receive a grant of 35%, an apartment building applying for the grant shall reconstruct the heating system so that it is locally adjustable, mount distributors of heating costs on heaters, partly or fully insulate and reconstruct the facade, insulate and reconstruct the roof, exchange all windows for energy efficient ones, install a ventilation system with heat return, fulfil the recommendations of energy audit and requirements of programme “Renovation Loan of Apartment Building”, and achieve at least 50% of energy saving from consumption of heating energy, and energy label class C.

To obtain a grant of 25%, the applicant shall reconstruct the heating system so that it is locally adjustable, mount distributors of heating costs on heaters, partly or fully insulate and reconstruct the facade, insulate and reconstruct the roof, exchange all previously not changed windows for energy-saving ones, achieve an energy saving of at least 40% by reconstruction, and energy label class D.

To obtain 15%, an apartment building shall achieve energy saving of at least 20% in an apartment building with closed net area of 2000 m2, at least 30% in an apartment building with closed net area of over 2000 m2, fulfil recommendations provided in energy audit and requirements of programme “Renovation Loan of Apartment Building”. By performing reconstruction work, the accordance of internal climate to requirements shall be ensured, and the apartment building shall achieve at least energy label class E.

An apartment building applying for the renovation loan of KredEx may submit a grant application with a loan application to Swedbank or SEB Bank. Apartment buildings using only own funds for renovation, or apartment buildings not belonging to the target group of renovation loan of apartment buildings by KredEx and are using other renovation loan from a bank, may submit a grant application with additional documents to KredEx.

More detailed terms of the grant and the loan are available in the web page of KredEx http://www.kredex.ee.

Funds obtained from sale of Assigned Amount Units of the Republic of Estonia to Luxembourg are used to support apartment buildings. Applications for grant may be submitted from September 30th, 2010 until the exhaustion of funds, or until November 30th, 2012.