Reconstruction grant for small residences 2022 (applications until 18/08)Closed
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.
Pursuant to subsection 15 (9) of the relevant regulation, the procedural time-limit for the 2022 grant applications has been extended by 60 working days.
On 19/08/2022, an amendment to the Regulation on Reconstruction Grant for Residential Buildings entered into force. With the amendment to the Regulation, new conditions of the grant applied, which can be found here.
To apply, please send the required documents and questions related to the grant to [email protected]. Grant administrators will answer calls on weekdays from 13.00 to 16.00.
- Energy savings
- Healthful interior climate
- Better living conditions
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 building to be reconstructed has been put into service before 2000 and
- 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.
- Main conditions
- Works cannot be commenced and advance payments cannot be made before submitting an application.
- Disbursement of the grant will be made after completion of the works, or the grant recipient may apply for the grant to be disbursed in two parts.
- To receive the grant, the applicant’s small residence must have been built under legal grounds and must have been entered into the Register of Buildings; the year of the first occupation of the building must also be entered into the Register of Buildings.
- 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 deadline for performing the supported activities in total is up to 12 months, starting from the date of making the decision to satisfy the application.
- 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 exterior walls or roof have been insulated with a layer of at least 10cm thickness in or after the year 2000, the above-mentioned works are not compulsory when purchasing and installing 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.
- 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 be signed by the enterprise and must include:
- the name of the applicant
- the name of the enterprise
- the address, phone number and e-mail of the enterprise
- the date of issuing the price quote
- the cost of the planned activity with and without value-added tax
- in the case of 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
- 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.
- Disclosure requirements
Part of the grant budget will be covered by the European Union’s Recovery and Resilience Facility (RRF) resources.
The use of European Union resources brings with it certain obligations, including the requirement to inform the public about how the money is being used. It is important to bear in mind that failure to comply with the project notification rules may lead to partial or even full recovery of the grant.
All owners of a small residential building that have received a grant from the European Union must display a poster on the façade of the small residential building or in another visible place on the property for the duration of the project’s eligibility period, i.e. for 12 months of the date of the decision granting the application.
If your small residential building has received a grant from the RRF, you must display an A5 poster on the façade of the residential building or on the fence surrounding the house, which must depict the logo of the European Union’s Recovery and Resilience Facility, to which at least 25% of the area of the poster has been allocated, and the name of the project, which comprises at least 30% of the height of the poster.
More detailed instructions on providing information can be found in the Regulation of the Government of the Republic of Estonia ‘Organisation of the implementation of the recovery and resilience programme and the general conditions for granting support’.
Here is a sample of the poster to be completed
The costs of creating the posters are covered by the owners of small residential buildings and their design must be based on the examples provided on the KredEx website. Should you have any questions, please send an e-mail to: [email protected].
Application and disbursement
- Coordinate activities and requirements for the construction project with the local government.
- Order a building design project for the planned works if you are obligated to do so under the Building Code.
- Get at least three quotes.
- Fill in the energy consumption data submission form.
- Obtain a connection offer in the event of constructing solar panels.
- Fill in the application and sign it.
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
- construction project in accordance with the Building Code.
- 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
- the connection offer issued by the distribution network operator, if the renewable energy-based electricity production device is installed in a region with a distribution network.
- 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.
- The grant recipient may apply for the grant to be disbursed in two parts. The grant recipient is entitled to submit the first application for partial payment of the grant, if at least 75% of the eligible activities has been accepted; at that, the second disbursement, i.e., the final disbursement of the grant may not be smaller than 15% of the eligible activities.
- 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:
- activities that are the basis for the application must be completed
- the instrument of delivery and receipt must be finalised with the performer of the works
- if necessary, a use and occupancy notice or use and occupancy permit must be provided, and the service must be paid for, at least in the part that the grant does not cover. If the lodging of a notice of use is not recorded in the register of construction works, the application for disbursement must be accompanied by documents supporting the lodging of a notice of use
- The grant recipient must provide KredEx with the documents or copies of documents certifying the occurrence of expenses, which are:
- the invoice issued and if necessary, the payment order, account or credit card statement certifying the payment thereof
- the instrument of delivery and receipt of the work, and a construction contract or contract for services, if applicable
- The recipient of the grant will submit the grant disbursement application to KredEx within 30 working days of signing the instrument of delivery and receipt, submitting the use and occupancy notice or being granted the use and occupancy permit.
- If by the moment of submitting the disbursement application, payment has only been made for the portion of services not covered by the grant, the grant recipient should submit KredEx a payment order or account or credit card statement certifying full payment for the services within 30 business days of making the payment.
- 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.
We answer calls from 13.00 to 16.00.