Grant for upgrading heaters FAQ


Applying for the grant

When will the application round open?

Application rounds are opened based on the subsidised activities. The opening of each application round is announced on the KredEx website at least 10 working days in advance. In the first round of applications, grants can be requested for activities related to furnace and district heating. In the second round of applications, grants can be requested for activities related to air-to-water or geothermal heat pumps as well as furnace and boilers.

Where can I submit an application?

Applications can be submitted through the e-grant environment. Informational materials to assist in filling out the application form can be accessed here.

Which activities are subsidised in the first application round?
  • Purchasing and installing an furnace or reconstructing an existing furnace to comply with regulatory standards.
  • When purchasing, installing, or constructing a furnace, purchasing and installing a modular chimney and chimney sleeve installation.
  • connection to the district heating network, including the necessary pipeline installation and excavations, construction of a heat node and associated connection fees. This encompasses the purchase of radiators, pipelines and reinforcements with installation as well as the purchase and installation of underfloor heating.
I would like to apply for a grant for the purchase and installation of an air-to-water heat pump, geothermal heat pump, pellet or wood boiler. When can I apply?

The application can be submitted with additional documents in the upcoming application round. We will announce the opening of the round on the KredEx website. Please note that it is not possible to apply for a grant solely for the installation of a pump or boiler; the existing furnace must also be fixed (rebuilt to meet the standards) or demolished. If you have rebuilt the furnace in the first round of applications, you can apply for a grant for pump installation in the second round. If the residence already has a furnace that meets the regulatory standards, you cannot apply for a grant for a heat pump. In such cases, you can apply for support for a heat pump in the application round for reconstruction grants for small houses.

How were the unit prices for supported activities determined?

The methodology for unit price analysis and implementation can be found here.

How is the grant amount determined?

The grant amount is determined based on the unit price of the subsidised activity, without consideration of actual expenses. When connecting to district heating, the subsidy is provided as a predetermined payment, derived from the budget project received in accordance with the submitted connection offer.

For example, in the case of installing a new furnace, the unit price is 6400 euros and the grant amounts to 4480 euros (70%) for a small house in Jõgeva and 3200 euros (50%) for a small house in Tartu. If the service cost for district heating connection is, for example, 5000 euros, then the grant amount would be 3500 euros (70%) for a small house in Jõgeva and 2500 euros (50%) for a small house in Tartu.

For example, if you apply for a grant for the installation of a furnace in a residential building in Tartu, including the installation of a 10-meter modular chimney and an air-to-water heat pump with the installation of 4 radiators, the support amount would be calculated as follows:

Furnace: 3200 + 1250 euros, air-to-water heat pump: 4800 +1280 euros, total cost: 10,530 euros. However, the requested sum would amount to 10,000 euros.

How can I prepare for compiling the documents?

One of the additional documents required for the application is an issued construction project or a technical specification of the installation of the heating device or system. This document must be submitted alongside the grant application. If you wish to prepare in advance, it is advisable to find out from the building code or the local government whether a construction project is necessary for the intended works. If it is required, you can commission a construction project. If a construction project is not needed, you can order or compile a technical specification.

What is a technical specification?

A technical specification is a document that contains the data of the heater, describes the work related to it in detail and, if possible, also includes the drawings. The technical specification may be drawn up by the owner of the small residential building or by the contractor or other competent person.

Do I have to be registered in the residential building or do I have to live in the residential building for which I wish to receive the grant?

The applicant can be the owner of the residential building indicated in the land register. Details of your residence are not relevant in applying for the grant.

When can I start the subsidised works?

Subsidised works may not be started before the decision to approve the grant application has been made. It is also not allowed to start demolishing the furnace before a decision has been made.

Work may not start before an application is submitted. However, can I start dismantling the furnace before submitting an application?

You will not be eligible for the grant for the demolition of a heater and you may not start demolition work before a decision has been made on the application. Nor may you order a new heater or pay any bills or orders before the application has been approved.

Is the design cost subsidised and when can I pay for designing the heating system?

As design costs are not eligible for reimbursement, payment for design work is allowed before the submission and approval of the application.

Where can I find information about my small residential building?

You can check the details of your residential building at www.ehr.ee.

The data in the building register regarding the type of heater and the year of first use of the residential building do not correspond to the actual situation. What should I do or who should I talk to?

Contact the local authority to correct the data.

Does the residential building need to have an occupancy permit?

The year of first occupation of the residential building must be stated in the building register and it must be earlier than 2010. If the year of the occupation is 2010 or later, it is not possible to apply for the grant. The existence of an occupancy permit is not relevant.

Can residential buildings with three or more apartments apply for the grant?

Residential buildings with three or more apartments are considered to be apartment buildings and do not warrant the grant. Apartment buildings can apply for the grant during the application rounds of apartment associations.

What is a densely populated area?

A densely populated area is an area where buildings are located close to each other. Densely populated areas are mostly cities, towns or villages. The choice of eligible areas is based on a study carried out by the Estonian Environmental Research Centre (OÜ Eesti Keskkonnauuringute Keskus), which looked at the concentration of fine particles in the air during the heating period and population density. On the basis of the study, cities and regions where the replacement of the heater is expected to have the greatest impact on air quality and thus on human health were selected. The Environmental Research Centre’s study ‘Mapping of local heating areas and heaters’ can be found here. 

Can I apply for the grant if my residential building is not in the area specified in the Regulation?

You can only apply for the grant in the cities or districts listed in the Regulation.

Where can I check whether my small residential building belongs to an eligible densely populated area?

Eligible areas are within the boundaries of the city, not the municipality. Some cities are part of the administrative area of the city governments: Haapsalu, Keila, Paide, Pärnu, Rakvere, Sillamäe, Tartu, Viljandi, Võru. In their case, it is easy to find the on the map of the Land Registry whether the small residential building is located within the boundaries of a city or a municipality. To do this:

  • Open the Land Board map application homepage X-GIS 2.0 [gFDMoQHd] (maaamet.ee)
  • It is recommended to start from the address of the cadastral unit. For example, if the municipality is the city of Tartu but the settlement unit is Tüki village, then the small residential building is not located in the city of Tartu as an eligible area and is not part of it:
     
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  • In the address of the small residential building, ‘municipality’ and ‘settlement unit’ must be indicated as ‘city’. For example, Toetuse 1, Tartu city, Tartu city, Tartu County is located in the eligible area.
  • In the case of Tallinn, the division of the city is important. For example, Toetuse 1, Nõmme district, Tallinn, Harju County is located in the eligible area.
  • The addresses of other eligible areas must be written in the form of, for example, Toetuse 1, Elva city, Elva municipality, Tartu County.
Why is it necessary to submit the residential property owner’s taxation data certificate from the Tax and Customs Board about the taxable income of the previous calendar year?

Applications meeting the grant conditions are ranked according to the applicant’s taxable income from the previous calendar year, from lowest to highest. Grants will be awarded based on this ranking until the budget for the application round is exhausted. Priority is given to residential owners with lower incomes who have not replaced their heating device for economic reasons.

How do I receive a taxation data certificate?

You can download the tax data certificate file from the website of the Tax and Customs Board. To do so, follow these steps:

1. Access the e-tax office here and select ”Registers and inquiries” from the left column.

2. Select “Compilation of certificates” from the left column.

3. On the right, select “New certificate” and thenTaxation data certificate” from the drop-down menu.

4. Select January 2023 as the starting point and December 2023 as the end-point for the period.

5. All income types are selected by default. Do not change that.

6. Select “Compile certificate”.

7. Download the certificate on your smart-device or computer by clicking on “Download” and choosing the digidoc format.

When creating the certificate, you can choose to have it sent to your e-mail address.

NB! Ensure that the certificate includes all the necessary types of income, such as income from the tax return of a natural person, payments declared by employer(s), disability, unemployment insurance and redundancy benefits, pensions, employer contributions to the third pension pillar, accumulated pension payments and taxes, dividends received from business activities as well as payments and debts made from equity.

If a residential property has several owners, whose taxation data certificate needs to be submitted?

If the small property has multiple owners (joint or co-ownership), a certificate of taxation data for all owners must be submitted. Each owner can obtain the certificate individually by logging onto the website of the Tax and Customs Board.

What authorisation is required if my small residence is co-owned?

On the KredEx website, there is a sample power of attorney available for filling in, signing and attachment. Alternatively, you can prepare a free-form authorisation that is digitally signed.

Which furnace can you apply for a grant for?

When constructing a new heating system, it is essential to ensure that both the heating system and chimney system comply with standards EVS-EN-15544 and EVS 812-3. References to these standards must be included in the construction project, technical description, furnace passport, employment contract or work report. Similarly, when reconstructing the furnace, adherence to the standard is necessary. For more detailed information on whether the furnace meets the referenced standard, you can consult the potter.

Is it possible to also apply for the grant for the reconstruction of an old furnace?

It is possible to apply for a grant for the reconstruction of an old furnace if it can be reconstructed to meet the standards specified in regulations (standard EVS-EN-15544, EVS 812-3 or another equivalent standard). Reconstructing an existing furnace to meet the standards requires a large-scale deconstruction of the furnace and rebuilding by reusing serviceable parts from the old furnace on the exterior. You can consult the potter for more detailed information on whether it is possible to do this.

Can a private person carry out the work and install a new heater or build a new furnace?

When applying for the grant, it is not allowed to order the works from a private individual. The works must be contracted with a company authorised to operate in the relevant field. Furthermore, the construction of chimney systems and furnaces and the installation of modulating furnaces and fireplaces must be carried out by a certified potter.

Where can I find information about potters and whether a potter has a valid professional certificate?

You can check the existence of the certificate on the Estonian Qualifications Authority website. Information on potters can be found on the website of the Estonian Potters’ Union (Eesti Pottseppade Liit) and the Estonian Chimney Sweepers’ Chamber (MTÜ Eesti Korstnapühkijate Koda). Keep in mind that the potter must own a potter level 4 or master potter level 5 certificate.

Is it necessary to submit quotes when applying for the grant and can I make an advance payment before applying?

It is not necessary to submit a quotation as the grant amount is fixed on the basis of the unit cost. In the case of connection to district heating, the application must be accompanied by a connection offer from the district heating company. Advance payments may not be made and any works may not be started before a decision on the application is received.

How do I prove that an existing furnace has been demolished? I will carry out the demolition myself.

One requirement for the payment of the grant is entry into a contract for services. If your application has been approved, you can enter into a contract with the selected company for the performance of the works.

The contract for the performance of the works can also be entered into in a format reproducible in writing, i.e. via e-mail, provided that the correspondence reveals the parties to the contract and the cost and volume of the works. Additionally, upon completion of the works, the contractor must issue an instrument of delivery and receipt of the works.

Do I need to enter into a contract for services for the works?

In the case of a contract concluded before the date of submission of the application, the grant applicant must ensure that it foresees the incurrence of payment obligations, the delivery of goods/equipment and the execution of works in a time period that is later than the decision on the grant application. This requirement ensures that projects that would not have been carried out in the absence of the grant are supported and that the beneficiary had no possibility of carrying out the activities without the grant.

If my residential building has a furnace but I wish to connect to district heating, do I have to dismantle or renew the furnace?

If you connect to district heating, you do not have to demolish or renew (or reconstruct to meet the regulatory standards) your furnace.

What works are eligible for subsidies as part of the underfloor heating installation?

The subsidised works include the installation of underfloor heating collectors, piping and associated fittings. However, grants do not cover works related to floor construction (such as concrete casting, floor insulation, etc.), nor do they extend to interior fitting. When installing underfloor heating, thermostats must be installed at living room and bedroom junctions to enable individual room regulation for both living rooms and bedrooms.

How to apply for a grant if a terraced house, two-apartment residence or semi-detached house shares a joint heating system?

In such cases, the co-owners must submit a joint application, with one of them submitting the application on behalf of all co-owners who must have authorised the action.


Works covered by the grant

Can I apply for the grant if I have an oil-fired or gas boiler?

Oil-fired and gas boilers are not solid fuel heaters and you cannot apply for the grant to change or replace an oil-fired or gas boiler.

Is an air-to-air heat pump covered by the grant?

It is not possible to apply for the grant for the installation of an air-to-air heat pump.

Is it also possible to apply for the grant to demolish an old stove and heat wall and construct new ones?

It is not possible to apply for the grant for the construction of a new stove and heat wall. In general, a stove is not used as the primary heater and therefore the construction of a new stove and heat wall is not covered by the grant.

If my small residential building has many old furnaces, can I apply for the grant to build multiple new furnaces?

You can apply for the grant for the construction or repair of several furnace, but take into account that the maximum grant per residential building is 10,000 euros

Can you apply for the grant to upgrade the heating system of a holiday home?

You cannot. The main use of the residential building must be listed in the building register as a detached, semi-detached, terraced or two-apartment residential building, terraced housing, two-apartment residential housing or semi-detached housing if they have an autonomous heating system.

Can you apply for the grant to repair a chimney?

If you are installing a pellet or wood boiler, fireplace or modular furnace, and if you are constructing a furnac, the construction of a new chimney system or the renovation of an existing one with the installation of a chimney liner is covered by the grant, where applicable. The grant cannot be applied solely for the construction or renovation of a chimney.

Can I apply for the grant to both repair my existing furnace and install a ground source heat pump with underfloor heating?

You can apply for the grant, but the maximum grant amount per small residential building is 10,000 euros. You can fix your furnace by applying for a grant in the first application round and receive a grant for installing a ground source heat pump with underfloor heating from the second application round. This way, it can be taken into account that the furnace has already been repaired during the first round and does not need to be repaired again in the second round. Please note that the maximum total grant amount can be 10,000 euros.

Can I install only radiators or hydronic floor heating with the help of the grant?

Hydronic floor heating or radiators can only be installed with the aid of the grant in combination with a new air-to-water or ground source heat pump or pellet or wood boiler or when joining a remote-heating system.

If I have a fireplace that does not have the option of heat storage, can I apply for the grant to install a heat storage furnace or a fireplace?

The grant covers heaters with the option of heat storage. The heater to be replaced must be heat-retaining and used as the primary heating source for the residential building. Therefore it is not possible to apply for the grant to renew or replace a fireplace that does not have the option of heat storage.

Why is the construction of open fireplaces not supported by the grant?

The grant does not support the construction of fireplaces with open flames. Heating with open fireplaces is not particularly efficient, as a significant portion of the heat escapes through the chimney. Additionally, an open fireplace may even cool the room if the fire inside is small or extinguished. Open fireplaces are not intended to serve as primary heating devices in residences but rather as elements of interior design to enhance the atmosphere. This grant specifically supports the construction of heat-retaining furnace-fireplaces.

Do I have to demolish my existing furnace/heat-retaining fireplace to receive the grant?

If you intend to install a new heating device (air-to-water heat pump, geothermal pump or boiler), you must either reconstruct the existing furnace to comply with regulatory standards or completely remove and demolish it. We recommend opting for the reconstruction of the furnace to bring it up to standards rather than demolishing it.

You will not have to demolish an existing furnace if:

  • It can be reconstructed according to regulatory standards (such as standard EVS-EN-15544 or any other equivalent standard recognised by an international or European standard organisation and standard EVS 812-3:2018 or any other equivalent standard recognised by an international or European standard organisation). An additional grant for the reconstruction of an existing furnace must be included in the application. Information confirming the renewed furnace’s compliance with these standards must be documented in its submitted documents for the payout
  • The furnace or heat-retaining fireplace in question has been recognised as culturally significant by the National Heritage Board and the heating device is made unusable by walling up the chimney opening or by removing the chimney system altogether.
  • The furnace also does not have to be demolished when joining district heating.
How do I know whether my old furnace is culturally significant? Do I need to determine its cultural significance myself before submitting the application?

In most cases, culturally significant furnace and fireplaces are found in buildings of cultural value such as memorials or structures located within heritage protection or milieu-valued areas. Heating devices with cultural significance are typically found in buildings constructed before 1940. If you are unsure whether your old heating device holds cultural value, please contact your local county advisor of the National Heritage Board, the national heritage specialists in Tallinn, Tartu or Narva or the milieu-valued area specialist in your local municipality. You can find contact information for the National Heritage Board here.

Make sure to seek advice for questions concerning the maintenance and removal of heating devices in memorials or heritage protection buildings and coordinate your actions with an advisor from your county or city national heritage advisor.

If I own an old furnace/heat-retaining fireplace, do I need to remove it completely to receive a grant for the heat pump?

If the residence has several different heating devices, including some without cultural value, you may choose to remove (demolish) one of them while retaining the more valuable or aesthetically pleasing one(s).

If the residence has one heating device with cultural value and no other heating devices, it is possible to use the grant to reconstruct the existing valuable heating device to comply with regulatory standards. In this case, grants can be applied for two activities: reconstructing an existing furnace and, for example, installing an air-to-water heat pump. For the air-to-water heat pump installation, the grant can be applied for in the second grant round. When renewing an old furnace, it must be brought up to standard in fire safety regulations and the valuable outside layers of the old furnace and/or metal parts in good condition may be used for renewing the interior of the furnace. If the outside parts or details of the valuable existing furnace are in poor condition and cannot be reused, the doors, dampers, soot cups, soot doors, hatches and intact outside frame may be preserved and/or reused if they are in good condition. These items can be made of either ceramic furnace parts or metal. If the valuable furnace is not recommended for everyday use, the old furnace or heat-retaining furnace may be retained as a decorative element. In this case, a confirmation from the National Heritage Board about the preservation of the heating device must be submitted alongside the application. The chimney opening for furnaces used as decorative elements must be walled off or the chimney system must be removed altogether and the heating device must be considered out of use.

Make sure to seek advice for questions concerning the maintenance and removal of heating devices in memorials or heritage protection buildings and coordinate your actions with an advisor from your county or city national heritage advisor.

What should I do if I wish to install a new heating device (such as a heat pump) and preserve the culturally significant furnace or heat-retaining furnace as an alternative heating device?

If you wish to apply for a grant for the installation of a heat pump while also retaining the existing culturally significant furnace or heat-retaining fireplace in use, you will need to apply for a grant for both the installation of the heat pump and the reconstruction of the present furnace/fireplace. Since the grant rounds are opened based on the nature of activities, you can apply for a grant for reconstructing the existing furnace or heat-retaining fireplace in the first grant round and then apply for the installation of a heat pump in the second grant round.