Gov't Announces HUF 108 bln Scheme for Home Energy Efficiency Upgrades

Residential

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The government will launch a HUF 108 bln subsidy scheme for energy improvements in homes built before 1990, state secretary for energy and climate policy Attila Steiner announced on Friday, according to a report by state news wire MTI.

The government will offer homeowners who contribute HUF 1 mln to project costs up to HUF 6 mln of support, of which half will be interest-free credit and the other half grant money, Steiner said. The subsidies may be used to replace windows and doors, upgrade water heating systems, replace furnaces, and add insulation, he added.

Homes must be connected to the gas network to avail of the subsidies.

The 50%-50% ratio of subsidised credit and grant money may vary depending on the level of development in the area where the applicant's home is located, but the grant money may not exceed HUF 3.5 mln. In line with European Union rules, subsidized investments must produce energy savings of 30% or more, a level that must be certified.

Fielding questions, Steiner said the program would be supported by the EU's Recovery and Resilience Facility (RRF) and pre-financed with government monies.

Credit awarded in the scheme must be repaid within eight years, he said, adding that monthly installments would be between HUF 26,000 and 35,000.

The scheme, implemented through the Hungarian Development Bank (MFB), is expected to support investments with a combined value of HUF 127 bln.

State Secretary for industrial policy and technology Gergely Fábián said 20,000 family homes could be upgraded in the framework of the program.

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