Reconstruction grant for small residences 2022 (applications from 19/08)

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Purpose

By means of the reconstruction grant for small residences, we help owners reconstruct their residences. The objective of the grant and its results include achieving energy efficiency and a better indoor climate of small residential buildings, reducing their energy consumption, facilitating the adoption of renewable energy, increased number of dwellings with improved energy efficiency, and savings in the annual consumption of primary energy.


On 19/08/2022, an amendment to the Regulation on Reconstruction Grant for Residential Buildings entered into force.
Pending the amendment of the Regulation, grant applications will continue to be subject to the conditions in force at the time of application, which can be found here.


To apply, please send the required documents and questions related to the grant to eramu@kredex.ee. Grant administrators will answer calls on weekdays from 13.00 to 16.00.

Benefits

  • Energy savings
  • Healthful interior climate
  • Better living conditions
  • Safety

For who?

Kodu

private and family

Service is suitable if

  • the applicant owns a detached house, a section of a semi-detached house or a duplex, a two-apartment residential building or semi-detached house and
  • the residential building to be reconstructed is entered in the building register, irrespective of the year of occupation of the small residential building.
  • the small residence is the applicant’s permanent residence and
  • own contribution is available at least in the part that the grant does not cover.

Important conditions

Main conditions
  • Works cannot be commenced and advance payments cannot be made before submitting an application, except if a grant is applied for the installation of solar panels and price quotes have been received for the overall design and installation of the panels, the commitments may have been received prior to the submission of the application, but the installation works should be carried out after the submission of the application.
  • Disbursement of the grant will be made when the beneficiary has undertaken at least a proportionate share of the supported activities corresponding to the amount of the grant (e.g., if the grant rate is 30%, payment can be claimed if a work file for at least 30% of the activities has been submitted).
  • To qualify for the grant, the applicant’s small residential building must have been built on a legal basis, be entered in the building register, and its year of first occupation should be stated (the year is irrelevant).
  • Thorough reconstruction – a project that is used to comprehensively perform, pursuant to the requirements provided in the conditions of the grant, at least the thermal insulation of the exterior walls and roof, the replacement of windows, reconstruction of the heating system, and installation of a supply and exhaust ventilation system with heat recovery. As a result of reconstruction, at least Class C energy performance must be achieved.
  • The supported activities must conform to the requirements specified in sections 19–24 of the Building Code.
  • The term for submitting an application for payment is 30 November 2022, by which time the activities corresponding to the share of grant should have been carried out. The remainder of the work can be carried out up to 12 months after the decision to award the grant.
  • Expenses must be justified, described in the application, and documented. Cash transactions are not eligible for aid.
  • The cost of extending a small residential building is not eligible.
  • The cost of construction products and construction materials purchased by the grant applicant is not eligible.
Proportion of the grant and the maximum grant amount
  • For individual works, the grant rate is 20% of eligible expenses and the maximum grant amount is EUR 20,000 per small residential building.
  • With thorough reconstruction, the proportion of the grant of eligible expenses and the maximum grant amount per small residence is:
    • 30% and EUR 20,000 in Tallinn and Tartu as a settlement unit;
    • 40% and EUR 30,000 in Harku rural municipality, Jõelähtme rural municipality, Kiili rural municipality, City of Maardu, Rae rural municipality, Saku rural municipality, Saue rural municipality, except for the territory of the former Kernu rural municipality and Nissi rural municipality as at 14 October 2017, Viimsi rural municipality, Luunja rural municipality, Kambja rural municipality and the territory of Tartu rural municipality as at 14 October 2017 and the territory of the former Tähtvere rural municipality as at 14 October 2017;
    • 50% and EUR 40,000 in settlement units and administrative units not specified in the two previous clauses.
  • 30% of costs related to purchasing and installing solar panels and the maximum grant amount is EUR 20,000 per small residential building.
  • If a grant is being requested for a project that involves the installation of solar panels and, if necessary, other eligible works are performed (e.g. replacement of windows) due to differences in the roof/façade, the grant rate shall be 30% across the board and the maximum grant amount is EUR 20,000.
  • The cost related to restoring the interior finishing is eligible in up to 5% of the total cost of reconstruction works, but in the event of thorough reconstruction it cannot exceed EUR 2,000, and in any other case it cannot exceed EUR 1,000.
Works that are supported
  • Thermal insulation of the façade, socle or foundation, and the accompanying works.
  • Thermal insulation of the roof, ceiling roof or attic ceiling, and the accompanying works.
  • Replacement or renovation of windows and exterior doors, and the accompanying works.
  • Thermal insulation of the floor of the first storey or the floor located above an unheated room, and the accompanying works.
  • Replacement or renovation of the heating system, and the accompanying works.
  • Construction, replacement or renovation of the ventilation system, and the accompanying works.
  • Purchase and installation of a renewable energy production device, together with the equipment necessary to transform energy, manage consumption load, and store the produced energy, and the accompanying works
  • The purchase and installation of solar panels must involve at least 
    • the thermal insulation of the façade, socle or foundation, and the accompanying works or
    • the thermal insulation of the roof, ceiling roof or attic ceiling, and the accompanying works.

If the authorisation for use for a small residential building has been granted in 2000 or later, or if the exterior walls or roof of the residential building have been insulated with a layer of at least 10 cm thickness in 2000 or later, the above-mentioned works are not mandatory for the purchase and installation of solar panels.

  • Purchase and installation of waste water heat recovery equipment, and the accompanying works.
  • Other works ensuring direct energy savings that are recommended in the construction project, related to thermal insulation or the replacement of technical building systems.
  • Restoration of the interior finishing resulting from the activities referred to in clauses 5 3) to 6) of the Regulation.
  • Preparation of the construction project necessary to perform the reconstruction works.
  • Performance of owner supervision.
  • Preparation of the construction project and owner supervision are eligible for aid if the reconstruction works are performed as a part of the project.
Ineligible costs
  • Costs related to works on electricity and low-voltage installations, excluding expenditure on electricity and low-voltage installations directly linked to the eligible activities.
  • The cost of connection to the district heating network.
  • The cost of connecting the renewable energy production device to the grid.
  • The cost of water and sewerage works.
  • Costs related to fencing, parking, outdoor lighting and landscaping of the property, excluding the cost of soil restoration associated with the installation of a ground source heat pump collector.
  • Excessive, miscalculated costs, or costs originating from extravagance.
  • Construction of an additional storey, completion of an attic or socle floor and the costs of preparatory works related to these activities.
  • The cost of construction products and construction materials purchased by the grant applicant.
Requirements for reconstruction works
  • Exterior walls with thermal transmittance of U ≤ 0.20 (W/m2K) will be thermally insulated (the thermal transmittance requirement is not applicable to the socle and foundation that will be thermally insulated together with the exterior wall).
  • Roof, ceiling roof or attic ceiling with thermal transmittance of U ≤ 0.20 (W/m2K) will be thermally insulated.
  • Exterior windows will be replaced with windows with a thermal transmittance of U ≤ 1.10 (W/m2K).
  • The thermal transmittance of the floor of the first storey or the floor located above an unheated room is U ≤ 0.25 (W/m2K).
  • The heat pump’s product label seasonal performance efficiency class for room heating is at least A++.
  • The gas boiler to be installed must have an energy efficiency class of at least A.
  • With a central heating system to be installed or renovated, the system must be able to be controlled on a room temperature basis; thermostats must be installed on radiators and floor heating circuits of living rooms and bedrooms.
  • The product label energy efficiency class of the ventilation device to be installed must be at least A.
  • In the event that the building does not have a supply and exhaust ventilation system, fresh air valves must also be installed into the exterior wall or window frame of living rooms and bedrooms when insulating exterior walls and replacing windows.
  • In the event of purchasing a heating device, the seller must ensure at least a two-year manufacturer’s warranty for all components, and upon installation, the installer must ensure at least a two-year warranty on installation works.
  • In the event of purchasing solar panels and a battery bank, the seller must ensure at least a five-year manufacturer’s warranty for all components, and upon installation, the installer must provide at least a five-year warranty on installation works.
  • A connection offer issued by the grid operator is necessary to connect the renewable energy-based electricity production device to the public grid.
  • Upon connecting the renewable energy-based electricity production device to the technical building systems, the person performing the electrical works must be entered into the Register of Economic Activities under equipment work under the electrical work area of activity, pursuant to the Equipment Safety Act. You can check a company’s area of activity that has been entered into the Register of Economic Activities here.
  • The cost of purchasing solar panels is eligible if their capacity is up to 15 kilowatts.
Main requirements for the applicant and the recipient of the grant
  • The applicant must be the owner, who is a natural person, of the immovable property or apartment ownership that has been entered into the land register.
  • In the case of an immovable property or apartment ownership that is in joint or common ownership, the applicant must be one of the joint owners, who is a natural person, whom all the other joint owners who are natural persons have authorised to represent them.
  • At the moment of submitting the application, the address of the applicant’s permanent residence must coincide with the address of the small residence to be reconstructed.
  • In the event that the small residence is in the common ownership of a natural and a legal person, the owner who is a natural person can apply for the grant in proportion to the part of the immovable property that they own.
  • An application cannot be submitted by an applicant who has breached the conditions of a contract concluded with KredEx in the past five years, or has breached the obligations originating from an administrative act issued by KredEx, which has led to a decision to reclaim the granted aid at least in part.
Requirements for price quotes for reconstruction works
  • Upon ordering reconstruction works, at least three price quotations from enterprises independent of one another must be obtained.
  • It is not permitted to take a quote from a related person as defined in subsection 8 (1) of the Income Tax Act (spouses, cohabitees, direct blood or collateral relatives; companies belonging to one group, etc.).
  • The price quotes must be obtained from enterprises fewer than two weeks apart, they must be valid during comparison, and must be made by enterprises who are entitled to operate in the respective field.
  • The price quote must include:
    • the name of the applicant
    • the address of the small dwelling
    • the name of the enterprise
    • the address, phone number, and email of the enterprise
    • the date of issue and period of validity of the price quote
    • the cost of the proposed activity excluding VAT and including VAT
    • for heating equipment, a two-year guarantee on the equipment and installation
    • for solar panels and battery banks, a five-year guarantee on the equipment and installation

When submitting the application, please remember that the payment application should be submitted by 30 November 2022, at the latest, and by that date, the activities should have been adopted by the act in a volume corresponding to the share of the grant. In the context of the quotation process, we recommend that you check whether it is feasible for tenderers to carry out the work within this volume and time frame.

The above conditions also apply if the price quote for the installation of the panels includes equipment, activities, and design.

  • A successful price quote should be based on the best possible ratio of price and quality. If the lowest price quote is not selected, this should be justified in the comments section of the application form.
  • In the event that the applicant is unable to obtain three price quotes, they must provide the relevant justification to KredEx on the application form, and attach the notifications of refusing to make a price quote, if possible.

 

Application and disbursement

  • It is preferable to commission a building design for the planned works if required by the Building Code. The construction project does not have to be submitted with the grant application, but the grant applicant should take into account the fact that for most works, the construction project is the basis for the preparation of price quotes. Coordinate activities and requirements for the construction project with the local government.
  • Get at least three quotes.
  • Fill in the energy consumption data submission form.
  • If you would like to connect a renewable energy production installation to the distribution grid, please request a connection offer if you are installing solar panels.
  • Fill in the application and sign it.

You can find the grant application forms here.

When submitting the application, please remember that the payment application should be submitted by 30 November 2022, at the latest, and by that date, the activities should have been adopted by the act in a volume corresponding to the share of the grant. Please assess the feasibility of carrying out the activities within this time frame on the basis of the price quotes submitted.

Send the application documents to eramu@kredex.ee. You can find the grant application forms here.

The accompanying documents of the application are:

  • the power of attorney, if the person with the right of representation operates on the basis of authorisation
  • it is advisable to submit a building project
  • price quotes
  • document certifying the applicant’s self-financing (e.g., a statement of the applicant’s current account or a credit institution’s loan decision)
  • energy consumption data reporting form
  • with thorough reconstruction, energy calculation for certifying energy performance, using a small residence energy performance calculator or simulation calculation
  • connection offer issued by the distribution system operator when the renewable generating installation is connected to the distribution system, unless the connection offer cannot be obtained due to circumstances beyond the control of the applicant. Proof of this derogation should be provided in the form of an opt-out notice.
  • The grant will be disbursed to the recipient of the grant pursuant to the conditions of the decision satisfying or partially satisfying the application.
  • The grant recipient must submit a request for disbursement electronically, using the appropriate form. You can find the grant disbursement form here.
  • To be entitled to a disbursement, the beneficiary should have adopted at least a proportionate share of the supported activities corresponding to the amount of the grant (e.g., if the grant rate is 30%, payment can be claimed if a work file for at least 30% of the activities has been submitted).
  • In the event that the cost of supported activities turns out to be cheaper than the amount specified in the application, the grant will be disbursed pursuant to the percentage specified in the grant decision, guided by the actual cost of activities, but not exceeding the maximum amount of aid specified in the decision satisfying the application.
  • In the event that the cost of supported activities turns out to be more costly than the amount specified in the application for aid, the grant will be disbursed in the amount specified in the decision satisfying the application.
  • For the grant to be disbursed, the following is required:
    • the works covered by the acceptance of works submitted with the application for payment have been carried out and accepted in respect of at least a proportionate share of the activities supported, corresponding to the amount of the grant
    • an application for disbursement together with supporting documents should be submitted to KredEx by no later than 30 November 2022. Applications for disbursement received later will not be eligible for disbursement.
  • The grant recipient should provide KredEx with the documents certifying the occurrence of expenses, which are:
    •  building project in the case of an obligation to draw up a building project under the Building Code (if the building project is not submitted with the grant application)
    • an instrument of delivery and receipt of the works and contract for services (e.g. order confirmation, sales or construction contract)
    • an invoice corresponding to the work file submitted.
  • In the event of performing thorough reconstruction, the recipient of the grant will provide KredEx with the energy label based on energy consumption measurements taken in the calendar year following the completion of reconstruction of the small residence, within one month of the respective calendar year ending.
  • In any other cases, the recipient of the grant will provide KredEx with the energy consumption data of the calendar year following the completion of reconstruction of the small residence, on the KredEx-approved form, within one month of the respective calendar year ending.
  • The recipient of the grant is obligated to ensure the maintenance and targeted use of the property corresponding to the objective of granting the aid for at least five years from the date of making the decision to satisfy the grant application.
  • In the event of performing thorough reconstruction, the recipient of the grant is obligated to insure the small residence in at least the five consecutive years following the decision to satisfy the application entering into force.
  • The beneficiary is required to submit a report within 30 working days of the completion of the work and the term specified in the decision approving the application. The report form can be found here.
    The report should be submitted with:
    • an instrument of delivery and receipt of the works
    • photos of the work performed

 

Contact us

We answer calls from 13.00 to 16.00.

Maret Truija

Maret Truija

Client Manager

maret.truija [at] kredex.ee
Kaimo Kalda

Kaimo Kalda

Client Manager

kaimo.kalda [at] kredex.ee
Kersti Saar

Kersti Saar

Private Grant Service Owner

kersti.saar [at] kredex.ee

Varje Vendla

Client Manager

varje.vendla [at] kredex.ee