Earlier, Index was the first to reveal that the government was preparing for a new housing renovation program, and on Thursday the Minister of National Economy, Márton Nagy, announced the new government measure. He didn’t have to wait long for the specifics, he presented the details in a joint press conference on Friday Steiner Attilathe State Secretary of the Ministry of Energy responsible for energy and climate policy and Gergely FábianState Secretary responsible for industrial policy and technology at the Ministry of National Economy.
We show you the details
A program supporting building energy upgrades for families the details were explained in such a way that the government’s main goal is to provide clean, affordable energy to domestic consumers. The energy crisis showed that it is necessary to increase self-sufficiency and energy sovereignty in the next period by producing more own energy and reducing consumption. This is the main task of the Ministry of Energy – reminded Attila Steiner, and then emphasized:
A lot of records have been set specifically for solar capacity. We also decided on the construction of the three gas-fired power plants, the extension of the operating time of the Paks nuclear power plant and the exploitation of the potential of geothermal energy.
He pointed out that before the crisis, Hungary consumed 10 billion cubic meters of natural gas, but at the same time, based on the March data, this had already decreased to 8.1. The reason for this is the conscious use of energy and a milder than average winter. This process is joined by the program just announced, which
- 108 billion HUF framework scheme,
- It concerns the modernization of family houses built before 1990,
- as well as a condition that the residential property is connected to piped natural gas and that the owner resides there in a way of life.
Within the framework of the program, support can be applied for in combination for the following developments: thermal insulation, replacement of windows and doors, hot water and heating system modernization.
HUF 7 million investment budget, which requires a HUF 1 million deductible.
HUF 6 million is divided between an interest-free loan and support. The rate of this is determined by the income situation and regional and district conditions. Another important criterion is that at the end of the investments, the family house must achieve at least 30 percent energy efficiency, which must be proven with energy certificates. The government starts this program with pre-financing.
It will be easier to achieve the protected price
The Ministry of Energy believes that the measure greatly supports the energy consumption of families, and that it will be easier to reach the limit of the protected price of utility reduction. I would like to announce the program at the beginning of June, and other programs may follow with EU funds.
A program related to public buildings is also expected from the cabinet.
The State Secretary of the Ministry of National Economy reminded that the investment consists of three sources: self-reliance, non-refundable support and interest-free loan. The funding source depends on the district and the income situation, and
the non-refundable part ranges from HUF 2.5 to 3 million.
So the rate of support depends on where you claim it and with what income situation. The program is managed by the Hungarian Development Bank.
You can also save a lot on the loan
Owners can save up to HUF 10 million over a decade with the interest-free loan of the home renovation program and the reduction in utilities due to energy efficiency improvement of at least 30 percent, according to a compilation of ingtalan.com and money.hu.
It is also worth embarking on the modernization because the value of the property increases significantly
– evaluated the announcement by László Balogh, the leading economic expert of ingtalan.com, according to whom, in the case of family and semi-detached houses sold this year – involved in the home renovation program – a third more was paid for the renovated properties compared to the ones to be renovated.
Due to the interest-free and post-modernization support, HUF 2.5-3.5 million must be repaid to the bank for the loan.
On the other hand, in the case of an 8-year mortgage loan of 6 million forints, the same amount would be 8.3-9.3 million forints. It will be possible to finance larger renovations from the home renovation program, but applicants will need a larger deductible or a market-based loan for this.
So, with the interest-free loan of the home renovation program, property owners thinking about energy modernization can save HUF 4.8-6.8 million in interest and loan repayment compared to market-based loans.
Many have been waiting for this announcement
Attila Juhász, the president of Újház Zrt. and ÉVOSZ’s Construction Materials Trade Section, evaluated the announcement as saying that the Hungarian construction industry had been waiting for this form of support, because it completes the palette that was launched by csok+ and the solar program, and this is the form of support that can positively affect most small and medium-sized enterprises operating in the construction industry.
It is precisely for this reason that it is expected that many people will use the support, since there are many postponed constructions and renovations among the population due to the turbulence of the past year.
From this source, the complete external thermal insulation of an average family house built before the 1990s with a floor area of 80-100 square meters can be carried out, including the slab insulation, which, combined with the replacement of windows and doors, can result in an energy efficiency improvement of up to 50 percent, they wrote in their announcement.
It is interesting to note that more than 80 percent of the currently more than 4.5 million domestic housing stock was built before 1990 (3.6 million apartments), so the basis for the new form of support is quite broad. Energy efficiency savings of 50 percent can easily be achieved by insulating the external facade of an average family house, insulating the slab, and replacing the windows and doors on the facade.
Roughly 900,000 of such houses built before 1990 are so-called Kádár cubes, i.e. family houses with a floor area of typically 80 square meters, built on the basis of uniform plans from the era before the regime change. In their case, this form of support is particularly beneficial.
Attila Juhász stated: the proportion of properties that are close to modern or even better classified does not reach 10 percent, half of the family houses have low energy efficiency, so there are plenty of apartments where the required 30 percent energy efficiency improvement can easily be achieved.
(Cover photo: Kitti Kolumbán / Index)
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