Reconstruction grant for small residences 2022-2023 (applications until 30.06.2023)

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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.

The application process for the reconstruction grant for small residences was halted from 1 July 2023. Final deadline for submission of a grant payment is 30 November 2023.
The regulation underlying the grant is under modification, and more detailed information about the conditions, support, and application process can be obtained continuously from our website. A total of 28 million euros have been allocated for grants. We will inform about the acceptance of applications on our website and through the media.

To apply, please send the required documents and questions related to the grant to [email protected].

For who?

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.
Expenses must be justified, described in the application, and documented. Cash transactions are not eligible for aid.
The cost of construction and extension works of small residences is not eligible for the grant.
The cost of building products and building materials purchased by the grant applicant is not eligible for the grant, meaning that it is not possible to apply for the grant in a way that the applicants themselves carry out the reconstruction works.

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, former Ülenurme rural municipality as at 14 October 2017, 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 interior finishing of eligible works are supported at the same rate as other works. It is important to note that the costs of the interior finishing can be maximum of 5% of the total cost of the 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
  
  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.
The call for quotations, the submission of quotations and the communication related to the price quotations must be in a form allowing written resubmission and it must be preserved for seven years.

How to apply?

Preparation

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.

Documents required to apply

Send the application documents to [email protected].

Documents required for the installation of solar panels

If you are applying to install solar panels, the documents you need are:

a digitally signed grant application. You can find the application form here
price quotes. Please note that the price quotes should not be taken more than two weeks apart from each other and they must include the required information about the warranty. If the price quotes have been taken as a whole set including the building project, solar panels and their installation, then the quotes do not need to be valid at the time of the application, but must be taken no more than two weeks apart. If the price quotes have been taken separately for the project and the devices including their installation, then ensure that the quotes are valid at the time of the application. Get a price quote from a company that has the right to operate in this field; the easiest way is to make a query here. You can see the requirements for price quotes here.
a document certifying the existence of the applicant’s self-financing. For this, please send us your account statement or a loan decision made by a credit institution. The loan decision must indicate that the offer has been made specifically for you.
the energy consumption data reporting form which must be filled in with 2022 consumption data. You can find the form here.

In addition, the following documents must be submitted if the conditions set out in the description are met, i.e., if you want to join the distribution network immediately or if a small residential building does not belong only to the applicant:

a connection offer issued by the distribution system operator when the renewable energy 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.
if the small residential building is in co-ownership or shared ownership, a power of attorney must be submitted for the activities underlying the grant (in free form, digitally signed). You can find the form here.

Documents required for other reconstruction works

If you are applying for other reconstruction works, the documents you need are:

A digitally signed grant application. You can find the application form here.
price quotes. Please make sure that the price quotes have been taken no more than two weeks apart and are valid at the time of submitting the application and contain information about the warranty in the case of reconstruction of the heating system. You can see the requirements for price quotes here.
a document certifying the existence of the applicant’s self-financing. For this, please send us your account statement or a loan decision made by a credit institution. The loan decision must indicate that the offer has been made specifically for you.
the energy consumption data reporting form which must be filled in with 2022 consumption data. You can find the form here.
in the case of comprehensive reconstruction, energy calculation for certifying energy performance, using a small residential building energy performance calculator or simulation calculation.
in the case of comprehensive reconstruction, it is recommended to submit a construction project which shows the activities underlying the grant and their compliance with the conditions of the Regulation.
if the small residential building is in co-ownership or shared ownership, a power of attorney must additionally be submitted for the activities underlying the grant (in free form, digitally signed). You can find the form here.

Grant disbursement

Send the documents required for disbursement to [email protected].

Later reporting and obligations

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, by sending it to the address [email protected].
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, by sending it to the address [email protected].
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:
- the final act of delivery and receipt of the works including the invoice
- photos of the work performed