Subsidy II (Investment eligibility conditions for the renovation of heating systems)

Updated: 17.01.2019

Author: Lilian Pungas

Under this measure, the acquisition and installation of a heating system for small residential houses is supported. The purpose of the support is to replace boiler equipment using liquid fuel with heating equipment using renewable energy sources. 

Eligible technologies

The following activities are eligible for support: 1) replacing the boiler equipment using liquid fuel, i.e. the purchase and installation of a boiler equipment accessory (including circulation pump, integrated automation) and auxiliary equipment, including the purchase of a new heater, and the purchase and installation of equipment for the storage of energy production; 2) the installation of air-water heat pumps of a small building with a COP heating temperature of at least 3.5 (7 °C / 35 °C EN 14511) or a water-water (geothermal pump) type heat pump with a system thermal (COP) heating at least 4.0 (0 °C / 35 °C EN 14511); 3) the cost of designing the installation of a heater when the installation of the heater is carried out under the same measure (§4(1) Investment eligibility conditions for the promotion of renewable energy use and the renovation of heating systems in small residential buildings). The following activities are not eligible for support: 1) the costs not associated with the acquisition and installation of heating equipment, including heating mains, heating elements and their adjusting devices, distribution of hot water and work on the electrical system (§4(4) Investment eligibility conditions for the renovation of heating systems).

Aerothermal energy

Eligible. 

Geothermal energy

Eligible. 

Solar thermal energy

Eligible (§4(1) Investment eligibility conditions for the renovation of heating systems). 

Amount

The grant rate is up to 40% of the eligible costs related to the supported activities. The maximum possible support amount is €4,000 per applicant (§6 Investment eligibility conditions for the renovation of heating systems).

Addressees

Owners or authorized co-owners of small residential houses (§9(1) Investment eligibility conditions for the renovation of heating systems). Applications meant to serve business purposes will not be approved (§7(5) Investment eligibility conditions for the renovation of heating systems).

Procedure

Process flow

The applications to receive this support are to be submitted on a rolling basis (§8(2) Investment eligibility conditions for the renovation of heating systems). •

  • KredEx will inform on its website at least 20 days before the date of receipt of the applications, starting from the date of receipt of the grant applications, and the general terms and conditions for applying for support. KredEx will inform on its website about the termination of receiving applications, once the budget for the measure has been used. KredEx has the right to suspend receipt of support applications by notifying it on its website (§8(3) Investment eligibility conditions for the renovation of heating systems).
  • KredEx will process applications within 30 working days from the submission of a valid application. During that process, KredEx may require the applicant to provide explanations and additional information on the information provided in the application or to supplement or amend the application if it considers that the application is not sufficiently clear, indicating the circumstances which need further clarification, supplementation or additional information (§12(2)-(3) Investment eligibility conditions for the renovation of heating systems). Applications are reviewed and accepted in the order in which they were received (§13(5) Investment eligibility conditions for the renovation of heating systems).
  • The support payment is made to the beneficiary in accordance with the conditions specified in the grant agreement. In order to receive the payment, the installation of the heating appliance must be completed and the act of delivery and receipt has to be completed with the performer of the works and paid at least for the part not covered by the grant (§18(1)-(2) Investment eligibility conditions for the renovation of heating systems).
  • The beneficiary is obliged to submit to KredEx the payment claim for support within 30 working days as of the receipt of the results of the activities supported by the measure. KredEx will make a payment decision within 20 working days after submission of the payment application and makes a payment to the beneficiary's account within 10 business days of the payment decision (§18(4)-(6) Investment eligibility conditions for the renovation of heating systems).
  • The beneficiary must submit to KredEx, by the 31st of January each calendar year, the data on the consumption of renewable energy in the heating system and the energy production data for three consecutive years after the payment of the grant (§19(1) Investment eligibility conditions for the renovation of heating systems).

Applications for grants may be submitted in the availability of budgetary resources until 30 April 2018. Supported activities must be completed or received by the beneficiary by 1 November 2018 at the latest (§5(1) Investment eligibility conditions for the renovation of heating systems).

Competent authority

Ministry of Economic Affairs and Communications (MKM); KredEx

Distribution of costs

State

The costs of this measure are borne by the state. 

Estonia

Further information

  • Majandus- ja Kommunikatsiooniministeerium (MKM) – Ministry of Economic Affairs and Communications
  • Siim Meeliste
  • +372 625 63 42
  • MKM website
  • info(at)mkm.ee