Grant for upgrading heaters for small residences

Suspended

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.


The application round for upgrading heating devices in small residences, which was initially opened on 18 September but had to be closed due to extensive technical failure, will reopen in the coming months. We will announce the precise date ten working days in advance through our website and media channels. The State Shared Service Centre, in collaboration with the IT Centre of the Ministry of Finance, will be overseeing the technical solutions related to the applications, while the Ministry of Climate will be evaluating and making adjustments to the regulation regarding applications. We will provide updates on our website regarding information about the application process.


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]. Grant administrators answer calls on weekdays between 13.00–16.00.

Benefits

  • Energy-saving
  • Better living environment
  • Safety

For who?

Kodu

private and family

Important conditions

Main conditions
  • The goal of the grant is the replacement of existing heating systems (furnace or boiler) with systems that utilise sustainable energy sources (such as an air-water heat pump or ground source heat pump) or the reconstruction of existing heating systems in accordance with regulatory standards. To replace a furnace or boiler with a wind-water or ground source heat pump, the existing furnace or boiler must either be reconstructed in accordance with regulatory standards or dismantled. The grant cannot be applied for a heat pump if the existing heating system is not dismantled or reconstructed.
  • Work may not start before the application has been submitted.
  • 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 system or the co-owners must apply for the grant jointly.
  • 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, pellet or wood boiler, solid fuel boiler, modular, fireplace or handmade stove, the existing solid fuel heater must be permanently removed or upgraded, unless otherwise prohibited by legislation. 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 the application has been submitted.
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

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 or any other equivalent international or European standard and must have been built by a potter with the appropriate professional certification (pottsepp, tase 4 ja pottseppmeister, tase 5). 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. 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. 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 812-3:2018 or any other equivalent international or European 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.
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. The grant application round will open on 18 September 2023 at 09:00. You can find introductory information material to assist the application process here.
 

The supporting documents for the application are:

  1. 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)
  2. The construction projector technical specification issued for the works subject to the grant
  3. A connection offer issued by the district heating company
  4. In the case of connecting to district heating, a draft budget in the form prescribed by the implementation unit

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.

Contact us

We will answer your calls between 13.00–16.00.

Maret Truija

Client Manager

maret.truija [at] kredex.ee

Varje Vendla

Client Manager

varje.vendla [at] kredex.ee

Svetlana Lipping

Client Manager

svetlana.lipping [at] kredex.ee

Triin Kööp

Client Manager

triin.koop [at] kredex.ee

Ulrika Tambur

Client Manager

ulrika.tambur [at] kredex.ee

Helina Täht

Client Manager

helina.taht [at] kredex.ee

Kadri Salomets

Client Manager

kadri.salomets [at] kredex.ee