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21.10.2016

KredEx to start issuing grants for the reconstruction of small residential buildings

From 14 November, reconstruction grants for increasing the energy efficiency of small residential buildings may be sought from KredEx. This year, EUR 1.35 million has been allocated for it from the state budget. These grants enable up to 30% of the total cost of reconstruction to be covered, with the maximum grant amount being EUR on 15,000.

Small residential buildings make up 1/3 of Estonia’s housing stock. Average energy consumption per square metre in buildings in Estonia is higher compared to the other EU Member States, and a cold climate is not the only reason for it. Older small residential buildings are in a condition where their reconstruction is inevitable, in terms of both their long-term preservation and their energy efficiency. The purpose of the reconstruction grants for small residential buildings is to contribute to their increased energy efficiency in order to cut energy consumption.

In the assessment of Liisa Oviir, Minister of Entrepreneurship, more efficient use of energy would provide significant financial savings whilst also contributing to the sustainable use of environmental resources. “By supporting the reconstruction of buildings, the state can contribute to growth in the sustainability and energy efficiency of the housing stock. It is important for resources to be allocated for the introduction of renewable energy sources and for energy efficiency, which overall also provide a better result in the creation of a healthy living environment,” the Minister reasoned.

According to Triin Reinsalu, Head of the Housing and Energy Efficiency Division at KredEx, when reconstructing one’s private residence, it is also important to think of the building as a whole. “A significant proportion of small residential buildings have been built during the 1950s and 1960s, and given the design standards then, reconstruction works need to be carried out in order to achieve modern living conditions and reasonable energy use. A significant component in a well-maintained building is its good indoor climate, which directly affects one’s health. Accordingly, it pays to reconstruct one’s small residential building in the most comprehensive manner possible, and, using a grant, the investment will also repay itself faster,” Reinsalu noted.

Support is provided for all aspects of thermally insulating a house, upgrading its heating systems, additionally the acquisition and commissioning of equipment running on renewable energy sources, and any other works that contribute to a reduction in energy consumption.

Analogous grants were provided through KredEx also in 2012, for 212 small residential buildings. At that time, the average cost of reconstruction was EUR 40,000, whereas the average grant disbursement was EUR 13,400.

Under the state budget strategy for 2017 to 2020, the plan is to fund grants for increasing the energy efficiency of small residential buildings during this period at the total cost of EUR 6.91 million. In 2016, EUR 1.35 million has been allocated for it.