New renovation grant round to emphasize energy savings over submission speed

Until now, renovation grants for apartment associations in Estonia were awarded based on how quickly applications were submitted. Starting this summer, however, an €80 million round will prioritize support for buildings where renovations would result in the largest reductions in energy consumption.
According to a regulation signed by Minister of Infrastructure Kuldar Leis (Reform) this week, apartment associations will have 30 days from the opening of an application round to submit their support applications to the Estonian Business and Innovation Agency (EIS).
Once the deadline for the round has passed, buildings will be ranked based on where energy consumption could be reduced the most — meaning where support is most needed.
The agency will launch the next application round for renovation support this summer.
The Ministry of Climate noted that associations planning to apply should first check their building's energy efficiency rating in the Building Register to ensure the data is accurate when submitting their application.
Under the new regulation, buildings covered by the budget distribution will be ranked based on their annual energy consumption per square meter according to their respective energy efficiency ratings; priority will be given to buildings with the highest relative energy use.
In an appearance on Vikerraadio's "Uudis+" on Friday, Ministry of Climate deputy secretary general Ivo Jaanisoo said that efforts to improve things have been ongoing for years. At one point, there were fewer applications than available funds, which meant more outreach efforts, but the situation has since reversed, and available money has been snapped up in seconds.
"The fastest draw shouldn't be what determines whether a building gets support," he noted. "But no perfectly fair off-the-shelf solution exists here either."
Jaanisoo explained that the ministry had weighed various possible options, ranging from heating costs to residents' financial situations.
"We found that energy consumption is the best option — it's easier to verify, and keeps the paperwork to a minimum," he said.
"An apartment association chair doesn't have to ask every household about their expenses," he continued, adding that this data isn't easily verifiable anyway.
Apartment associations that have previously submitted applications but didn't receive support won't need to revise them, as the core submission rules remain the same.
The deputy secretary general said that grant funding is important in general, as apartment buildings in Estonia are in relatively bad shape, with more than 13,000 buildings in need of renovation.
"And not because of some European rules, but to save on heating bills and emergency repair costs," he stressed.
A total of €80 million will be distributed to apartment associations in this summer's application round, with funding coming from EU structural funds and proceeds from CO2 quota sales.
Applicants will be divided into four separate budget categories: small apartment buildings with fewer than 18 units, medium-sized buildings with 18-99 units, large buildings with at least 100 units as well as neighborhood-based renovations. For neighborhood-based support, adjacent buildings must procure construction work jointly to ensure a comprehensive solution.
According to the ministry, heating cost savings from renovating a building can reach nearly 60 percent.
The standard support rate for renovations is between 30-50 percent. Higher support rates apply to the construction of elevators, small buildings, buildings in heritage protection areas as well as factory-produced renovations.
The application round launched last October remains open for large apartment buildings and apartment buildings in Hiiu, Põlva, Saare and Ida-Viru counties. Nearly 250 apartment associations have already been awarded support from that round, which will remain open through October or until the allocated funds are exhausted.
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Editor: Barbara Oja, Aili Vahtla