On April 2 of this year, the Ministry of Economics and ALTUM launched a new #EUfunds support program for increasing the energy efficiency of multi-apartment buildings. The total funding for the program is 173 million euros, and by the end of 2029, it is planned to renovate more than 400 multi-apartment residential buildings across Latvia. ALTUM will start accepting applications on April 3, 2025, at 11:00.
Minister of Economics, Viktors Valainis:
“The new program offers significant improvements that will facilitate the accessibility of energy efficiency projects across Latvia. We will particularly support modern insulation solutions and the renovation of residential neighborhoods to create a more organized and sustainable environment. More favorable conditions have been created for the Latgale region, where renovation rates have been slower to date. This is an important step towards a more energy-efficient and modern housing stock overall.”
Support for house renovation can be received in the form of a capital discount. The capital discount is granted as a percentage of the eligible loan amount, including VAT, which will be allocated towards repaying the loan principal after the house renovation project is completed:
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50%, if at least 30% total primary energy savings are achieved and if industrially produced wooden frame panels are fully installed on the house facade;
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50%, if at least 30% total primary energy savings are achieved and if ALTUM approves support for at least 3 buildings in a quarter;
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45%, if at least 30% total primary energy savings are achieved and if ventilated facades are fully installed on the house facade;
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40%, if at least 30% total primary energy savings are achieved;
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40%, but no more than 80,000 EUR, if 10% to 29% total primary energy savings are achieved and the house is located in the Latgale planning region. The condition of achieving at least 30% total primary energy savings applies to houses across Latvia, while 10% to 29% total primary energy savings applies to houses in the Latgale planning region, providing an opportunity for smaller projects to receive support.
Applications for loans for house renovation can be submitted to ALTUM or a commercial bank that has signed a cooperation agreement with ALTUM. After the project is implemented, support in the form of a capital discount will be directed towards partially repaying the loan principal.
Reinis Bērziņš, Chairman of the Board of ALTUM:
“Our main task is to provide residents with financing to make the renovation of multi-apartment buildings an easily accessible reality. Currently, the total amount of ALTUM support for improving outdated multi-apartment buildings exceeds 450 million euros, helping to create more quality housing in this segment. Additionally, besides the funding that allows residents to reduce part of the loan principal for house renovation, today we are announcing that for the first time, residents will also have access to an ALTUM grant for preparing technical documentation for multi-apartment buildings. The grant will cover 90% of these costs, which, for example, for a five-story building with 30 apartments, can reach about 20,000 euros. This means that residents only need to cover 10% of the costs themselves. Both the capital discount and the grant significantly reduce residents' costs for house renovation, and I encourage everyone to take advantage of these opportunities without delaying decisions.”
Support can be received by apartment owners through an authorized person (legal entity), as well as by legal entities that own a multi-apartment building. The support is available for multi-apartment buildings with at least 3 apartments, whether or not they are divided into apartment properties, regardless of the number of apartment owners. Applications can be submitted by an authorized person: a manager, administrator, or energy service (ESCO) company.
The new program offers two approaches for submitting applications to reserve a capital discount: submitting already prepared project documentation or simply submitting an energy certificate and cost summary, with other documentation to be prepared after the application is submitted.
The new support program for increasing the energy efficiency of multi-apartment buildings will be implemented with support from the European Regional Development Fund (ERDF).
The funding for preparing technical documentation is intended, for example, for the preparation of building technical inspection reports, energy audits, and design documentation. Support is provided thanks to the ALTUM and European Investment Bank contract (under the InvestEU Advisory Hub program), with a total available funding of 4.25 million euros, which will support the preparation of about 200 houses for renovation. The grant application process will start in April and will be separate from the multi-apartment building energy efficiency program. Importantly, after the documentation is prepared with the grant support, the project must be initiated under the energy efficiency program.