Contribution to the energy efficiency of single-family houses: This means the government's new proposal

As a result of recent years' gas and electricity prices, many homeowners have already switched to more durable and less price-sensitive heating systems. However, there are many who still struggle with expensive and outdated heat sources. With the new proposal for grants for the energy efficiency of single-family homes, the government wants more people to be able to afford the necessary conversions and thus reduce households' dependence on electricity and gas.

In this text, we will go into what the new proposal means for you as a detached house owner.

What does contribution to the energy efficiency of single-family houses mean?

The government has put forward a new proposal for measures to improve the energy efficiency of single-family homes. The grant is primarily aimed at homeowners who currently heat their homes with direct-acting electricity or gas. The energy efficiency grant must apply to both conversion to a new heating system and to improvements to the climate screen - that is, floors, walls, roofs, windows and doors. The grant is proposed to amount to a total of SEK 60,000, of which a maximum of SEK 30,000 can be received for conversion to a new heating system and SEK 30,000 for improvement measures of the climate screen. The grant is intended to encourage greater energy efficiency measures. Therefore, grants under SEK 10,000 will not be paid out.

According to the proposal, it should be possible to apply for grants for changing the heating system and for climate screens on different occasions. This is justified by the fact that even households with small financial resources should be able to implement energy efficiency at the pace they are able to.

The proposal has been sent for consultation (March 8, 2023) to responsible authorities, organizations and stakeholders, and consultation responses are expected shortly. Most likely, the proposal will be hammered through, which means that owners of small houses who are currently dependent on direct electricity and gas will be able to apply for grants to switch to better and less price-sensitive heating systems, such as district heating, pellets, geothermal heating and water-borne heating.

Who has the right to apply for grants for the energy efficiency of single-family homes?

The target group for the grant is single-family houses that are mainly heated with electricity or gas. Heating costs for these households have increased significantly in recent years and risk increasing further in the future. Since almost all single-family houses with these types of heating are in the worst energy classes (F and G), there are great opportunities for rapid improvements. If you have already implemented energy efficiency measures in your house, to such an extent that you no longer have direct-acting electricity or gas as the primary heat source for heating, you will not be entitled to apply for the grant. However, you must be able to apply for a grant retroactively for purchases of materials made no earlier than November 8, 2022. If the proposal is approved, the grant will be paid up to and including the end of 2025.

An important requirement for the grant to be granted is that the house is your permanent residence. In other words, you cannot apply for grants for the energy efficiency of your holiday home. The proposal also explicitly states that you may not apply for grants for heating spaces that have not previously been heated. This is justified by the fact that the goal of the subsidy is to reduce the need for electricity and gas, not to encourage increased consumption.

When it comes to what you should be able to apply for grants for, the proposal is otherwise quite permissive. As the grant covers both conversion and climate shield measures, households are given the opportunity to assess for themselves which measures are best suited for their detached house. However, there are certain requirements regarding which heat sources and systems you should be able to choose from. More on this in the next paragraph.

Which heating systems can I apply for a conversion grant for?

According to the proposal, grants must be given to material costs for conversion to one of the following heating systems:

• Controllable water or air heat pump.
• Rock heat, lake heat or geothermal heat pump.
• One or more controllable air/air heat pumps in combination with a water heater equipped with a heat pump, alternatively in combination with a biofuel device.
• Device for heating with solid or gaseous biofuel (biofuel boiler). Solid biofuel mainly means pellets, and gaseous means biogas. In order to receive a subsidy for a device for biofuel, this must be responsible for the main heating of the house and domestic hot water, as well as be power-controlled and allow a continuous and automatic fuel supply. This can be interpreted as pellet stoves and boilers are eligible for subsidies, while wood boilers and wood stoves are not.
• Connection to the district heating network. In order to receive a grant to connect your small house to the district heating network, it is required that the district heating must be able to provide the main heating of the house. The district heating must also cover the household's entire annual need for domestic hot water after connection.

What is meant by material costs?

The conversion grant must cover material costs when switching to a more energy-efficient heating system. The proposal gives some examples of what can count as material. However, it is important to remember that it is not an exhaustive list. In the list we find, among other things:

• Heat pump
• Pellet boiler
• Pellet stove
• Other biofuel boiler
• Heat distribution (e.g. waterborne elements)
• District heating center
• Heat exchanger
• Chimney
• Control equipment for heat pump
• Equipment for heat accumulation
• In the end, it is the County Administrative Board that decides whether you are entitled to a grant or not.

What is meant by climate screen measures?

According to the proposal, grants should also be able to be given for improvement measures of climate screens in direct-acting electric or gas-heated detached houses. Climate screen refers to the house's floor, roof, external walls, windows, doors and other parts that form a boundary with the surroundings.

This category includes costs for additional insulation, insulation of the attic and facade, replacement of doors and windows with a better U-value and other materials required for the implementation of the measures. Just as in the case of conversion to a new heating system, it is the County Administrative Board that decides whether your application is granted or rejected. 

How do I apply for a conversion grant?

So far, this is only a proposal that is under investigation. In other words, you cannot apply for a conversion grant for the energy efficiency of your house. However, the proposal contains recommendations regarding how the handling and applications should go, IF the proposal now goes through.

If you are entitled to a conversion grant, the application will probably proceed in the following way:

1. Print the form Contribution to the energy efficiency of single-family houses on the Housing Authority's website. ATTENTION! This form is not available until the proposal has been approved by the Riksdag.
2. Fill in the form and submit it to the County Administrative Board in the county where the house is located. The application must contain a description of the measures to be implemented, the planned time for commencement and completion, as well as other information that the County Administrative Board needs to be able to examine the application.
3. The County Administrative Board examines your application and decides whether it should be granted or rejected. If information is missing, the County Administrative Board can also ask for completion of the application.
4. The measures for which you applied for a grant must be completed no later than six months after they have been started.
5. When the measures have been completed, you submit a Request for payment to the County Administrative Board. The request for payment may be requested no later than six months after completion and must contain a report on which measures have been completed, presentation of receipts/invoices for material costs, and that the craftsman who performed the work holds an F-tax certificate.
6. The County Administrative Board then decides whether you are entitled to a grant, and how much you will receive. The payment is handled by the Housing Authority.

Time to change the heating system?

There are many incentives to switch to a cheaper and cleaner heating system. At Ulma, we are experts in pellet plants for both small and large properties. In addition to high-quality pellet boilers and pellet stoves, we can also offer energy-saving equipment such as accumulator tanks. Do you have questions about which pellet plant is required for heating and domestic hot water in your house? Do not hesitate to contact us!