For the first time, support for improving the energy efficiency of private houses will be available / Article / LSM.lv

On Tuesday, July 28, the government approved a new support program for households, which provides portfolio guarantees for commercial bank loans to improve the energy efficiency of private homes.

It is planned that portfolio guarantees will be available from the fourth quarter of 2020, the Ministry of Economics informed.

Until now, commercial banks have not offered products to increase the energy efficiency of private houses, as the owners may have difficulties in ensuring sufficient co-financing, as well as in some territories of Latvia private houses do not have sufficient collateral values.

Now, in order to receive a loan for improving the energy efficiency of a private house, which will be accompanied by an Altum guarantee, the homeowner will have to apply to a credit institution, which will have a cooperation agreement with Altum.

Image: Ministry of Economy

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The guarantee rate will be up to 30% of the loan amount, not exceeding 40,000 euros, the term of the guarantee does not exceed 10 years.

Altum guarantees will be able to attract commercial banks if the loan is granted:

• a natural person whose property rights to immovable property and the relevant residential house are fixed in the Land Register;
• a renewable building is an individual residential house, a semi-detached or terraced house, or a separate two-apartment house, as well as it has been put into operation;
• building renovation works, including:
• for the performance of construction work in the enclosing structures of the building;
• for the renewal, reconstruction or creation of engineering systems;
• for the purchase and installation of a new boiler;
• for the purchase and installation of technological equipment for the production of microgeneration heat or electricity in order to ensure the production of heat or electricity from renewable energy sources and the supply of heat or electricity only for the needs of the specific household.

Prior to granting the loan, Altum will carry out a compliance check on the energy efficiency assessment to ensure that the project will increase the building’s energy rating and reduce the building’s heat consumption for heating by at least 20%.

Altum will provide the development of an assessment of the energy efficiency improvement of buildings with the funding of the European Investment Bank’s Horizon2020 program ELENA, under which building owners will be able to receive support for the development of 90% energy efficiency technical documentation.

Specific conditions for this support are still being negotiated with the European Investment Bank and Altum.

The energy efficiency improvement program for private houses is planned to be financed from the state energy efficiency fund in the amount of 355,500 euros and 2 million euros from Altum’s unencumbered reserve capital.

It is planned that the program will provide an average of 250 loans per year for the implementation of energy efficiency measures in the private housing sector.

“For the first time, we can also offer support for the implementation of energy efficiency measures to private house owners. Until now, support for European Union funds to increase energy efficiency has been available for three or more apartment buildings, but support instruments have not been available for residential buildings with a smaller number of apartments or individual residential buildings, ”said Minister of Economics Jānis Vitenbergs (KPV LV).

On average, these buildings are significantly less efficient than multi-apartment residential buildings, so this government decision is the next step in arranging the housing stock and improving the quality of life of the population, the Minister pointed out.

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