Grant for upgrading heaters for small residences

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Purpose

The purpose of the grant is to improve the air quality of densely populated areas by replacing a solid fuel heater with a heater using renewable energy sources or district heating by upgrading an existing solid fuel heater, resulting in the improved fire safety and energy efficiency of residential heating systems.

The grant is intended for small residential buildings in densely populated areas whose main use is defined in the construction register as a detached, terraced or semi-detached house or a two-apartment residential building. It is also intended for terraced housing, two-apartment residential housing or semi-detached housing if they have an autonomous heating system.


We opened the first application round on 15.02.2024 at 09.00 and closed the application round on 29.02.2024 at 17.00. We assess every application submitted during this period with no exceptions. An application submitted on the very first day does not give any kind of advantage in the assessment – applications are ranked only on the basis of taxable income.


During this round, you can apply for grants for the following activities:
1) the purchase and installation of a furnace (modular furnace, heat-retaining fireplace furnace, handmade furnace) or reconstruction of an existing furnace to meet regulatory standards
2) when purchasing, installing or constructing a furnace, purchasing and installing a modular chimney with a chimney sleeve
3) 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 reinforcement with installation as well as the purchase and installation of underfloor heating.

If you wish to replace a heating device running on solid fuel and apply for a grant to purchase and install a water-to-air heat pump, geothermal heat pump or pellet/wood boiler, the application with the required additional documents must be submitted in the second grant round. If you fix up your furnace in the first round, you may also apply for a grant for a heat pump or a wood or pellet boiler installation in the second round. We will notify you when the round is open on the KredEx website.


Applications are submitted and processed through the online environment for structural grants E-toetus, managed by the State Shared Service Centre. You can find introductory information material to assist the application process here.
Watch an introductory video about the E-toetus system here.

If you have any questions about the grant, write to [email protected]
We will answer calls on weekdays from 13:00 to 16:00. Outside of these hours, please contact the phone number 627 9700.

Benefits

  • Energy-saving
  • Better living environment
  • Safety

For who?

Kodu

private and family

Important conditions

Main conditions

Please note that in the first application round, you may only apply for the following activities:

1. The purchase and installation of a furnace (modular furnace, heat-retaining fireplace furnace, handmade furnace) or reconstruction of an existing furnace to meet regulatory standards. Instead of demolishing your furnace, we recommend considering whether it could be reconstructed to meet the standards. If legislation (e.g. heritage conservation restrictions) sets forth that the existing furnace cannot be demolished, it may be preserved and a respective document must be submitted to certify it. Please contact the National Heritage Board in any questions regarding heritage conservation restrictions. Detailed recommendations for furnaces under heritage conservation can be found on our FAQ page.

2.  When purchasing, installing or constructing a furnace or purchasing and installing a modular chimney with a chimney sleeve

3.  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 reinforcement with installation as well as the purchase and installation of underfloor heating.

 

  • Before a decision on the application is made, work may not be started, including the demolition of the existing heating device (furnace).

  • To qualify for the grant, the small residential building must have been built on a legal basis, put into use before 1 January 2010 and entered into the building Register.

  • The type of heat supply of the building or part of it must be indicated in the building register as block or local heating and the type of energy source must be solid fuel.

  • For the purposes of the Regulation, a local space heater is defined as a stove or a boiler used for residential heating. A solid fuel local space heater is defined as a stove, a pellet or a wood boiler used for residential heating. A stove is defined as a fireplace or modular stove as well as a stove built or installed by a potter with the possibility of heat storage. A heater using a renewable energy source is an air-to-water or ground source heat pump. Heater upgrade is the conversion or removal of an existing solid fuel heater and the installation and construction of a new solid fuel heater in its place. To qualify for the grant, a terraced or semi-detached house or a two-apartment residential building must have an autonomous heating. If a terraced house, a two-apartment house or a semi-detached house shares a common heating system, the co-owners must apply for the grant together.
  • The small residential building must be located in the following area:
    In Tallinn: Pirita, Nõmme, Kesklinn, Kristiine, Põhja-Tallinn, Haabersti.
    Tartu, Viljandi, Rakvere, Kuressaare, Keila, Võru, Türi, Saue, Paide, Tapa, Kärdla, Elva, Haapsalu, Karksi-Nuia, Kilingi-Nõmme, Pärnu, Jõhvi, Kiviõli, Sillamäe, Jõgeva, Põltsamaa, Valga, Otepää, Tõrva.
    It is based on urban, not municipal boundaries.

  • All costs must be justified, directly related to the project and properly documented. Value added tax is an eligible cost.

  • Costs are certified and reimbursed only on the basis of the prices fixed in the grant rate, either as a unit price or flat-rate payment.

  • All activities eligible for a grant must conform to existing legislation. The designer and constructor must be an undertaking which meets the requirements of Articles 21 to 25 of the Building Code.

  • If the grant is applied for the installation of an air-to-water or ground source heat pump or pellet or wood boiler, (in the second application round), the existing solid fuel heater (furnace) must be permanently removed or upgraded, unless otherwise prohibited by legislation. Rather than choosing removal, we advise considering whether it is feasible to reconstruct the furnace to meet the standards. If a residential building has more than one solid fuel heater, this requirement applies to only one of the heaters.
  • The time limit for completing the activities for which the grant is sought is 12 months from the date of the decision approving the application. Activities may start after a decision on the application has been made. Demolition works on a furnace may also only start after a decision has been made on the application.
Grant rate and maximum grant amount
  • The grant rate is 70% in the following cities:
    Ida-Viru County: Jõhvi, Kiviõli, Sillamäe
    Jõgeva County: Jõgeva, Põltsamaa
    Valga County: Valga, Otepää, Tõrva

  • The grant rate is 50% in the following cities and districts of Tallinn:
    In Tallinn: Pirita, Nõmme, Kesklinn, Kristiine, Põhja-Tallinn, Haabersti
    Tartu, Viljandi, Rakvere, Kuressaare, Keila, Võru, Türi, Saue, Paide, Tapa, Kärdla, Elva, Haapsalu, Karksi-Nuia, Kilingi-Nõmme, Pärnu.

  • The total unit cost is:
    1) 9600 euros per residential building for the purchase and installation of an air-to-water heat pump;
    2) 14,100 euros per residential building for the purchase and installation of a ground source heat pump;
    3) 8900 euros per residential building for the purchase and installation of a pellet or wood boiler;
    4) 6400 euros per residential building for the purchase, installation or construction of a stove;
    5) 640 euros per radiator for the purchase and installation of a radiator;
    6) 30 euros per square metre of underfloor heating for the construction and installation of underfloor heating;
    7) 250 euros per metre for the purchase and installation of a modular chimney and 100 euros per metre for the purchase and installation of a chimney liner.
  • The amount of the grant as a flat-rate payment for connection to district heating shall be determined per residential building on the basis of the budget for the total cost of connecting to district heating, piping and the construction of the substation, taking into account the proportion of the grant rate as the maximum rate.
  • The maximum grant amount for one small residential building is 10 000 euros.

    Grant rates
grant_rates.jpg
Activities covered by the grant

In the first application round, grants can be applied for for the following activities:

 

  1. Purchasing and installing a furnace (modular furnace, heat-retaining fireplace furnace, handmade furnace) or reconstructing an existing furnace to comply with regulatory standards.
  2. When purchasing, installing, or constructing a furnace, purchasing and installing a modular chimney and chimney liner installation.
  3. 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.
     

In the second application round, the grant will be awarded for the replacement and upgrade of heating systems. The activities covered by the grant are:

  1. The purchase and installation of an air-to-water heat pump. The seasonal space heating energy efficiency class of the heat pump must be at least A++. When purchasing and installing the heating system, the seller and the installer must provide a manufacturer’s warranty of at least two years on all the components and installation work.
  2. The purchase and installation of a ground source heat pump. The seasonal space heating energy efficiency class of the heat pump must be at least A++. When purchasing and installing the heating system, the seller and the installer must provide a manufacturer’s warranty of at least two years on all the components and installation work.
  3. The purchase and installation of a pellet or wood boiler. The energy efficiency class of a new solid fuel boiler or heating device must be at least A+. Solid fuel local space heaters must comply with Directive 2009/125/EC of the European Parliament and the Council. When purchasing and installing a heater, the seller and the installer must provide a manufacturer’s warranty of at least two years on all the components and installation work.
  4. The purchase of a stove with installation and construction when upgrading a heater. Chimney systems, modular stoves and fireplaces and craft stoves must comply with the requirements of EVS-EN-15544 and EVS 812-3 or any other equivalent standard and must have been built by a potter with the appropriate professional certification. When purchasing and installing a heater, the seller and the installer must provide a manufacturer’s warranty of at least two years on all the components and installation work;
  5. The purchase and installation of radiators, including pipework and fittings when installing a new heater or connecting to district heating. When installing or renovating a central heating system, the system must be temperature-controlled based on the room temperature; thermostats must be installed to radiators and underfloor heating contours in living rooms and bedrooms;
  6. The purchase and installation of underfloor heating when updating a heater or connecting to district heating. When installing or renovating a central heating system, the system must be temperature-controlled based on the room temperature; thermostats must be installed to radiators and underfloor heating contours in living rooms and bedrooms;
  7. The purchase and installation of a modular chimney or the construction of a new chimney system or the renovation of an existing chimney system, including the installation of a chimney liner, in the case of constructing a solid fuel boiler, modular or fireplace stove or a handmade stove. A solid fuel heating system must comply with the requirements of EVS-EN-15544 and EVS 812-3 or any other equivalent standard;
  8. The construction of the pipeline and the excavation works necessary for connection to the district heating network as well as the construction of a substation and connection fees. Eligible costs for connection to the district heating network include excavation works, laying of pipelines, connection to the district heating network and connection fees according to the grant rate. The installation of radiators and underfloor heating is also covered by the grant.
Non-reimbursable costs
  • Costs related to electricity and low-voltage systems, excluding the cost of electricity and low-voltage systems directly linked to the supporting activities.
  • Costs related to water and sewerage systems, including the installation of hot water pipes inside the house.
  • 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.
  • Costs related to interior finishes due to the installation of underfloor heating, radiators and chimneys.
  • Unjustified costs not directly related to the project.
  • Costs related to the demolition of an existing heating device.
Main requirements for applicants and beneficiaries
  • The grant applicant must be a natural person who is the owner of a residential building or has the right of superficies or right of superficies in apartments.
  • In the case of jointly owned or co-owned real estate, apartment ownership or right of superficies, the applicant must be one of the natural person joint owners authorised to represent all other natural person joint owners. It is not necessary to provide the authorisation of the other joint or co-owners in the case of terraced and semi-detached houses or two-apartment residential buildings.
  • 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 real estate owned by them.
  • 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, after which a decision has been made to recover at least a part of the grant.
  • The beneficiary of the grant must ensure that the residential building on which the grant is based is used as a residential building for at least five years after the final payment of the project.

 

How to apply?

The grant can be applied for through the e-grant  environment. You can find the informational materials to help in filling out the application form here.
Please note that the application round is open for seven days. We accept and assess every application submitted during this period with no exceptions. An application submitted on the very first day does not give any kind of advantage in the assessment – applications are ranked only on the basis of taxable income. Therefore, we recommend that you do not rush to submit your application. If the number of interested parties on the first day turns out to be so high that the online environment cannot accept everyone who is trying to enter, please try again later. The application period is sufficiently long for everyone interested to submit their applications.

If errors occur in the e-grant environment preventing application submission and they cannot be resolved within two working days from their occurrence, the website will announce an alternative method for submitting applications.

The supporting documents for the application are:

  1. Tax data certificate of the applicant, the owner of the residence or, in the case of joint ownership, the owners of the residence, which should reflect their taxable income of the previous calendar year.. The quickest, most convenient and the easiest way to obtain the certificate is to generate it yourself in the Tax and Customs Board e-service environment e-MTA and you can already do it to have it ready. Further information about obtaining the certificate of taxable income and tax information can be found here.

  2. Photo of the existing heating device.

  3. Power of attorney, if the person authorised to represent the applicant acts under the power of attorney (e.g. in the case of co-ownership or joint ownership)
  4. The construction projector technical specification issued for the works subject to the grant
  5. A connection offer issued by the district heating company
  6. In the case of connecting to district heating, a draft budget in the form prescribed by the implementation unit

All applications received in the application round will be processed. The approved applications are ranked from lowest to highest based on the applicant’s taxable income from the previous calendar year. In the case of joint ownership, the arithmetic average of the owners’ incomes is taken. Applications will be granted based on the ranking until the budget is exhausted. When applicants have the same taxable income, preference is given to regions with higher air pollution, based on an analysis conducted by the Estonian Environmental Research Centre on local heating regions and heating devices („Kohtkütte piirkondade ja kütteseadmete kajastamine“). If the residences are in areas with similar air pollution levels, preference is given to the residence with a larger heating surface.

The works supported by the grant, including the dismantling of the furnace, must not be started until the decision to approve the application has been made.

The use of EU funds entails some obligations, including the requirement to inform the public about the use of the money. It is important to remember that non-compliance with the project’s notification rules may lead to partial withdrawal of the grant.

All owners of a small residential building who have received a grant from the European Union must place a poster on the facade of the building or in another visible location on the property (garden, window, etc.), which must remain in place during the construction work.

If your small residential building has received a grant from the European Regional Development Fund, you must display a poster (minimum size A5) on the facade of the building or in another visible place on the property. The poster must bear the ‘Co-funded by the European Union’ logo, which takes up at least 25% of the poster, and the name of the project, which takes up at least 30% of the poster’s height.

More detailed instructions for notifications can be found in the regulation of the Government of the Republic ‘
Notifying the public about the allocation of funds from the cohesion and internal security policy funds for the period 2021–2027’.

A poster template can be found here.

The costs of making the poster are covered by the owners of the small residential building and the design must be based on the samples available on the KredEx website. If you have any questions, write to [email protected].

Grant disbursement can be requested through the e-grant environment and disbursement documents can be submitted after the work has been completed.

The supporting documents for the grant disbursement are:

  1. The contract for the execution of works and the instrument of delivery and receipt.

  2. A passport for a solid fuel heating device.

  3. A CE certificate for the device, at least a two-year manufacturer’s warranty for the device and at least a two-year warranty for the installation of the device in the case of installing a heating device produced by a manufacturer located outside the European Economic Area.

  4. Photos of the activities performed.

  5. The certificate number of the potter in the case of reconstructing an oven.

  6. In the case of demolition of an existing stove, photos, a work report or a document confirming that the stove has been demolished.

  7. A sales contract proving the connection to the district heating company in the case of connecting to district heating.

  8. The documents required for the application to be approved.

  9. If necessary, documents proving that the supported activities have been carried out during the period of eligibility.

  • The grant recipient submits a report on the implementation of the project at least once through the e-grant environment based on what is written in the accepted application decision.
  • The final report of the project reflects:
    • project implementation period
    • data on the implementation of the project (work completed, achievement of results and goals)
    • assessment by the grant-receiver of the effectiveness and implementation of the project
    • photos to verify compliance with the application decision requirements

Contact us

We will answer calls on weekdays from 13:00 to 16:00. Outside of these hours, please contact the phone number 627 9700.

Svetlana Lipping

Client Manager

svetlana.lipping [at] kredex.ee

Maret Truija

Client Manager

maret.truija [at] kredex.ee

Helina Täht

Client Manager

helina.taht [at] kredex.ee

Kadri Salomets

Client Manager

kadri.salomets [at] kredex.ee

Varje Vendla

Client Manager

varje.vendla [at] kredex.ee