Reconstruction grant for small residences 2024 RRF

The main purpose of the grant is to increase the energy efficiency of small residences.

We will open the application round in 23. April at 09.00. The amount of the round is approximately 28 million euros. The application budget is bigger than ever and the application round is open until the budget is exhausted.

• Applications are prepared and submitted in the e-toetus environment managed by the State Shared Service Centre.
• Please find the information to help you with the application here.
• Watch an introductory video about the E-toetus environment here.
• If you have any questions, please contact [email protected].

PLEASE NOTE! Works may not begin and advance payment may not be made before submitting the application, except for the preparation of an energy label or a construction project.

PLEASE NOTE! The prerequisite for applying for the grant is to improve the energy label class of the building by at least one class. You can check the existence of an energy label for a small residence in the Building Register. If the small residence has not yet been issued an energy label based on weighted energy consumption data (KEK label), request it. The energy efficiency ratio, or ETA label, does not need to be submitted if the entire facade is insulated, a solar park is installed or the heat source is replaced (e.g. a geothermal heat pump instead of a stove). In all other cases, an ETA label must also be provided. Before you start requesting an energy label to apply for the grant, make sure that the works planned with the aid of the grant will increase the building's energy class. Consider that less extensive work such as insulating the plinth, changing windows, changing the front door, installing an electric car charger or adding a battery for storage to the existing solar panels often does not improve the energy label class of the building. You can find out more at the section of Preparations.

PLEASE NOTE! For anyone interested in purchasing a battery bank and electric car charging infrastructure!
Since the purpose of the grant is to increase the energy efficiency, the most important condition for receiving the grant is the improvement of the energy efficiency class of the residence. In the case of a complete renovation, the building must achieve energy class C (except for buildings of cultural value). In the case of partial renovation, an increase of at least one class is required. If the energy class of a small residence does not increase as a result of a single improvement, or if the residence has already achieved the best possible energy efficiency class A before applying for the grant, then it is not possible to receive the grant. If the grant is used to purchase only a battery bank or install only an electric car charging infrastructure, the recipient of the grant must also conduct additional work that would help improve the energy class of the residence.

PLEASE NOTE! The grant cannot be applied for the purchase of only additional panels or only the inverter.

Who is it for

• The grant can be applied for the renovation of a detached house or a dwelling with up to two apartments or a terraced house. The residential building must be entered in the building register and the year of its initial use must be indicated. You can check the data about your small residence at www.ehr.ee. If the data does not correspond to the real situation, contact your local government to correct the data.
• It is not possible to apply for the grant if:
  • the main use of the residence is for reasons other than the one mentioned above in the Building Register, e.g. summer house, garden house, commercial building, auxiliary building, etc.
  • it is a residential building with three or more apartments.

The grant can be applied for if the supported work increases the energy class of the small residential building by at least one class, e.g. from class C to class B. If the energy class of the small residence is already A, it is not possible to apply for the grant.

Main conditions

• The grant can be used for either partial or complete reconstruction.
• The application can be submitted by the owner of the property or an authorised person, in the case of joint ownership, one of the owners who has been authorised to represent the other owners.
• During the complete reconstruction, all external walls and the roof of the building are insulated, all the windows of the living spaces are replaced, the heating system is reconstructed and an intake-exhaust ventilation system with heat recovery is installed. As a result, a minimum of energy efficiency class C is achieved. If any of the listed activities have been done previously (e.g. windows replaced), the grant can only be requested for partial reconstruction. The beneficiary must insure the house for at least five consecutive years from the date of entry into force of the decision to approve the application.
• In the case of partial reconstruction, individual works are conducted and an increase in the building's energy efficiency value by at least one class must be ensured.
• The increase in energy efficiency value does not need to be proven and an ETA label does not need to be submitted if the entire facade is insulated, a solar park is installed or the heat source is replaced (a stove, air-to-air heat pump, electric, gas or oil heating is replaced by the air-to-water heat pump, geothermal heat pump or pellet boiler; if the residence already has, for example, an air-to-water heat pump or geothermal heat pump that you want to replace with a newer model, then this is not considered as a replacement of the heat source and the increase in the energy efficiency class must be proven).
  For all other individual works, it is necessary to prove an increase in the energy efficiency class. If the energy class of a small residence does not increase as a result of a single improvement or if the best possible energy efficiency class A has already been achieved, it is not possible to apply for the grant. If the grant is used to purchase a battery bank or install an electric car charging infrastructure, the recipient of the grant must also conduct additional work that would help improve the energy class of the residence.
• The existence of self-financing is confirmed on the application form, it is not necessary to submit a separate document (account statement, loan offer or loan agreement).
• The supported activities must be completed within 12 months from the decision to approve the application. In a justified case, it is possible to extend the deadline for the completion of activities once by up to six months. The latest date for the completion of the works is 31 December 2025. Before submitting the application, the supported works may not begin, agreements for the execution of the works may not be concluded, or an advance may not be paid, except for the preparation of a construction project or an energy label.
• Starting from 1 February 2020, costs related to the design and preparation of the energy label will be supported. You can find out from the Building Code and the local government whether a construction project is needed for the desired works.
• All expenses must be described, documented and justified in the application. Cash transactions are not permitted.
• The costs related to the expansion and construction of a small residence are not supported.
• It is not possible to apply for the grant in the condition that the applicant buys the building materials and performs reconstruction works by themselves. Grant-supported works must be performed by someone who is competent in construction and is registered in the Business Register. More detailed requirements are specified in sections 19–24 of the Building Code. The entry in the Register of Economic Activities is required only for the installation of solar panels.
• VAT is considered part of self-financing, and the amount of the grant is not affected by VAT.
• All changes to what was stated on the application must be approved by KredEx. If you want to change the contractor or activities, send an e-mail to [email protected] and we will advise you.

Works that are supported

• Preparation of the construction project and energy label necessary for the reconstruction works that are the basis of the grant.
• Insulation of the facade, plinth or the foundation and the accompanying works.
• Insulation of the roof, roof ceiling or attic ceiling and the accompanying works.
• Replacement or renovation of windows and exterior doors and the accompanying works.
• Insulation of the floor of the first floor or the floor located on the ground and the accompanying works.
• Replacement or reconstruction of the heating system and the accompanying works. With the grant, you can reconstruct the existing heating stove, cooking stove, chimney system, install a fireplace, boiler, heat pump, underfloor heating and radiators. The heating device to be installed, except for the heat pump, must use renewable energy. You cannot apply for a grant for the purchase of an oil or gas boiler.
• Construction, replacement or reconstruction of the ventilation system and the accompanying works.
• Acquisition and installation of renewable energy production device together with the necessary equipment for energy conversion, consumption management and energy production storage, and the accompanying works. The cost of a renewable energy production device is supported if the inverter power is up to 15 kW.
• When purchasing and installing solar panels, at least the insulation of the facade, plinth or foundation and the accompanying works or the insulation of the roof, roof ceiling or attic ceiling and the accompanying works must be performed. If the small residence’s occupancy permit was granted in 2000 or later, or if the exterior walls or roof of the small residence were insulated with a layer at least 10 cm thick in 2000 or later, the aforementioned works are not mandatory when purchasing and installing solar panels.
• Purchase and installation of a renewable energy production storage device, i.e. a battery bank, if the renewable energy production device is installed.
• Installation of the pipelines necessary for connection to the district heating network and excavation work to connect to the heating network, construction of a heating node, connection to the district heating network.
• Installation of electric car charging infrastructure within the meaning of clause 65 1 (1) of the Building Code. The charging infrastructure of an electric car is considered to be a wiring infrastructure or a charging point or a combination of a wiring infrastructure and a charging point.
• Calculation of the load-bearing capacity of the roof, if it is based on the design and is included in the price quote.
• Purchase and installation of wastewater heat recovery system and associated works.
• Restoration of the interior finish if it is necessary after replacement or renovation of windows and exterior doors, insulation of the floor of the first floor or floor located on the ground, replacement or reconstruction worksof the heating system and installation, replacement or reconstruction of the ventilation system.
• Owner supervision.

Proportion of the grant and maximum grant amount

• For partial reconstruction, the grant rate is 20% of the eligible expenses and the maximum grant amount is EUR 20,000 per small residential building.
• In the case of complete reconstruction, the grant rate based on the eligible expenses and the maximum grant amount per small residential building is:
  • 30% and EUR 30,000 in Tallinn and Tartu.
  • 40% and 40,000 euros in Harku municipality, Jõelähtme municipality, Kiili municipality, city of Maardu, Rae municipality, Saku municipality, Saue municipality, except on the territory of the former Kernu municipality and Nissi municipality as of 14 October, 2017; in Viimsi municipality, Luunja municipality, on the territory of the former Ülenurme municipality as of 14 October, 2017, on the territory of Tartu municipality as of 14 October, 2017 and on the territory of ​​the former Tähtvere municipality as of 14 October, 2017.
  • 50% and up to EUR 50,000 in settlements not mentioned in the two previous clauses.
• When purchasing solar panels, an inverter and a battery bank, price quotes do not need to be submitted, the grant is 30% of the unit price and the maximum grant amount per small residence is up to EUR 20,000.The total cost of the unit price for the purchase of solar panels and an inverter includes the preparation of a relevant construction project and is EUR 1140 per kilowatt. The maximum grant-supported nominal power of solar panels is 15 kW. 
  When purchasing a battery bank, the total cost of the unit price is EUR 642 per kilowatt-hour. The maximum grant-supported nominal capacity is 20 kWh for the battery. For example:
  • for the installation of 18 kW solar panels and a 15 kW inverter, the grant amount is maximum supported according to the nominal power of the 15 kW panels or 15*1140*30%=5130 euros;
  • When installing 5 kW solar panels and a 10 kW inverter, the grant amount is based on the nominal power of the solar panels, i.e. 5*1140*30%=EUR 1710 euros;
  • Installation of 18 kW solar panels and 20 kW inverter is not supported by the grant as the maximum inverter power can be 15 kW;
  • When installing a 10 kW battery, the grant amount is 10*642*30%=EUR 1930.
  • When installing a 25 kWh battery, the grant amount is 20*642*30%=EUR 3860.

PLEASE NOTE! The grant can be applied for the installation of solar panels and an inverter together. The grant cannot be applied for to only purchase additional panels or only the inverter.

• If the grant requested for a project that includes installing solar panels or a battery bank and insulating the roof/facade or carrying out other grant-eligible works (e.g. replacement of windows), the grant rate is 30% and the maximum amount of grant per small residence is up to EUR 20,000.
• The interior finishing of grant-eligible works are supported at the same rate as other works. The costs of interior finishing can be a maximum of 5% of the total cost of the reconstruction works, but in the case of complete reconstruction no more than EUR 2000 and in the case of partial reconstruction no more than EUR 1000.
  
  Example 1. If, in the case of a partial reconstruction, the cost of replacing the windows is EUR 10,000 in the price quote, then the maximum grant-eligible interior finishing cost is EUR 500. If the cost of the interior finishing of the window surrounds is EUR 800 in the price quote, then EUR 500 will be reimbursed with the grant. In this example, the total grant-eligible cost of the project is EUR 9700 and its grant rate is 20%.
  
  Example 2. If, in the case of complete reconstruction, the total cost of all supported activities is EUR 100,000, of which EUR 10,000 is for interior finishing in the price quote, then the maximum expense of interior finishing is EUR 2000. In this example, the total grant-eligible cost of the project is EUR 92,000 and its grant rate is either 30%, 40% or 50%, depending on the region.

Ineligible costs

• Costs related to works on electricity and low-voltage systems, excluding the cost of electricity and low-voltage systems directly linked to the eligible activities.
• Fee for connecting to the district heating network.
• The cost of connecting a renewable energy production device to the network.
• Cost of water and sewage system works.
• Costs related to property fences, parking spaces, outdoor lighting and landscaping, excluding soil restoration associated with the installation of heat pump ground collector and a district heating network.
• Excessive, extravagant or miscalculated expenses.
• The cost of expanding a small residence, building an attic or basement floor and the cost of preparatory work related to the mentioned activities.
• Fee and interest for concluding an instalment agreement.
• Purchase of construction materials and execution of work by a person who is not entered in the business register as an operator in the construction field.
• In the case of complete reconstruction, the cost of the energy label to be prepared based on the measured energy consumption data in the calendar year following the end of the reconstruction of a small residence.
• In the case of the construction of the solar park, building a barbecue hut, car shelter, etc.

Requirements for reconstruction works

• The thermal transmittance of the external wall to be insulated is U ≤ 0.20 (W/m2K).
• The thermal transmittance of the roof, roof ceiling or attic ceiling to be insulated is U ≤ 0.20 (W/m2K).
• The thermal transmittance of the windows is U ≤ 1.10 (W/m2K).
• The thermal transmittance of the first floor or the ground floor to be insulated is U ≤ 0.25 (W/m2K).
• The heating energy efficiency class of the heat pump product label must be at least A++.
• When installing or renovating a central heating system, the system must be temperature-controlled based on the room temperature; thermostats must be installed on radiators and underfloor heating contours in living rooms and bedrooms;
• In the case of complete reconstruction, an intake-exhaust ventilation system with heat recovery must be installed. The intake air flow rates of the ventilation system are at least 10 l/s in bedrooms and living rooms at a noise level of no more than 30 dB(A), and the exhaust air flow rates are at least 10 l/s in the WC, at least 15 l/s in the laundry room and 8 l/s in the kitchen. Corresponding information must be included in the construction project or some other document.
• The energy efficiency class of the product label of the ventilation device installed during a complete reconstruction must be at least A.
• If the building does not have a mechanical supply-exhaust ventilation system, fresh air valves must be installed on the external wall or window frame of the living room and bedrooms when the external wall is insulated or the windows are replaced. PLEASE NOTE! Fresh air valves as a room-based solution can only be installed in case of partial reconstruction, a complete reconstruction requires a ventilation system.
• Solar panels, inverters and battery banks must have a CE label and at least a two-year manufacturer's warranty.
• The heating device to be installed, except for the heat pump, must use renewable energy. The heating device must have a CE label and a warranty of at least two years.
• The cost of a renewable energy production device is supported if the inverter power is up to 15 kW.
• When connecting a renewable energy production device to the technical systems of a residential building, the person performing electrical work must be registered in the register of economic activity in the field of electrical work for electrical devices in accordance with the Equipment Safety Act. You can check the company’s field of activity entered in the register of economic activity here.
• In the case of partial reconstruction, an increase in the value of the building's energy efficiency by at least one class must be ensured. An increase in the energy efficiency class does not need to be proven if the entire facade of a small residence is insulated, the heating system is replaced or a renewable energy production device is installed. For all other individual works, it is necessary to prove an increase in the energy efficiency class.

Requirements for the grant recipient

• The applicant must be the owner, who is a natural person, of the immovable property or apartment to be reconstructed with the help of the grant, which is entered in the land register and in whose favour the building right or apartment building right has been set. Residence information, i.e. registration, is not required when applying for the grant.
• If a small residential building is co-owned by a natural person and a legal person, the natural person can apply for a grant in proportion to the immovable property owned by them.
• In the case of jointly owned immovable property or building rights, apartment ownership or apartment building rights, the applicant must be a natural person, who is one of the joint owners and who must confirm their right of representation on the application. If necessary, the authorisation of other owners is requested to be submitted as well.
• An application may not by submitted by an applicant who, within the last five years, has violated the terms and conditions of a contract concluded with KredEx or obligations arising from an administrative act issued by KredEx, which has led to a decision to reclaim at least a part of the grant.

Special conditions in the reconstruction of a culturally valuable small residence

If, based on the general or detailed planning, the small residence is located in an environmentally valuable housing area or a historic area, is a valuable individual object or a cultural monument, or is a small residence located in an area included in the UNESCO World Heritage List, the following special conditions apply:

• In the case of complete reconstruction, supported activities that significantly change the nature or exterior of the building, such as replacement of windows, will not be carried out if the local government or the National Heritage Board has not given permission for the work on the grounds of the protection of cultural or environmental value.
• In both complete and partial reconstruction, the facade will be insulated less than the required level of thermal transmittance or uninsulated, if the local government or the National Heritage Board has prohibited the additional insulation of the external walls on the grounds of the protection of cultural value or environmental value.
• As a result of the complete reconstruction works, the energy efficiency value of the residential building must increase by at least one class. For example, if the house had an F label before the reconstruction works, then after the reconstruction it must be at least E. Class C - as in the case of other small residences - is not mandatory to achieve when renovating culturally valuable small residences.
• If it is not possible to perform reconstruction works that meet the requirements due to the heritage protection requisites, a written confirmation from the relevant specialist must be submitted with the application. For the confirmation, you can contact the advisor of the Heritage Board in your region, the heritage protection specialist in Tallinn, Tartu or Narva or the local government specialist.

Requirements for price quotes for reconstruction works

• Price quotes for services must be taken from at least two companies independent of each other and unrelated to the applicant. Price quotes must also be taken for the owner supervision services.
• The price quotes must be taken in the applicant's name.
• The requirement to get two price quotes does not apply to the commissioning of a construction project if the construction project was commissioned before the grant regulation came into force, i.e. before 8 April, 2024.
• A successful price quote is based on the best possible price-quality ratio. If the applicant chooses a price quote that is not the lowest cost, they must justify it on the application form.
• If the applicant is unable to receive two price quotes for reasons beyond their control, they will provide a justification for this in the application and, if possible, include notices of refusal to make the quotation.
• The call for quotations, the submission of quotations and the communication related to the price quotations must be in a form reproducible in writing and it must be preserved for at least five years. If the quotation is taken through the appropriate solution on the bidder's website, the screenshot of the request for the quotation form is preserved as it is before it is sent to the bidder.
• Price quotations must be valid at the time of the application submission. The validity requirement does not apply to quotations taken for a construction project.
• Taking a price quote from a company related to the applicant's relative or spouse or life partner is not permitted. If the quotation is taken from another person related to the applicant within the meaning of subsection 8 (1) of the Income Tax Act (companies belonging to the same group, the applicant's employer, etc.), the Estonian Business and Innovation Agency has the right to check it and refuse to accept the quotation.
• The price quote must include:
  • applicant’s name;
  • the address of the small residence;
  • company name;
  • address, telephone number and e-mail address of the company;
  • the date and validity period of the price quote;
  • the cost of the planned activities with and without VAT.
• It is not necessary to get price quotes for the preparation of an energy label.
• When purchasing solar panels, inverters and batteries, it is not necessary to submit price quotations. In their case, the grant amount is based on the unit price.