On December 17, 2024, the Cabinet of Ministers approved a new European Union fund support program, enabling energy efficiency improvements in multi-apartment residential buildings and fostering the development of the energy service company (ESCO) market in Latvia. The program's total funding is €173 million, with plans to renovate approximately 266 multi-apartment residential buildings by the end of 2029.

"Since 2007, we have been providing support for housing renovation and energy efficiency improvements. It is no secret that the majority of the housing stock requires urgent repairs and energy-saving investments. Therefore, we are moving step by step toward our shared goal by continuing to ensure financing availability for residents to renovate their homes and improve living conditions," emphasizes Minister of Economics Viktors Valainis.

Support will be provided for the renovation of multi-apartment residential buildings (with at least 3 apartments), whether or not they are divided into individual apartment properties, regardless of the number of owners. This ensures a broad range of potential beneficiaries, including individuals who are the sole owners of all apartments in the building.

The support for residents will be provided in the form of a combined financial instrument, consisting of a loan or guarantee and a capital discount for partial repayment of the loan principal. If the project achieves at least a 30% reduction in primary energy consumption, a capital discount of 40% will be granted. The discount can be increased to 45% if residents choose to install ventilated facades, which provide longer-lasting and more cost-effective solutions compared to plastered facades.

Furthermore, if the project uses prefabricated wooden insulation panels or follows the so-called "block approach" where at least 3 buildings apply for renovation together, the maximum possible capital discount of 50% will be available. These methods will significantly accelerate the pace of building renovations.

To date, project activity in the Latgale region has been low — from 2007 until now, only 87 multi-apartment residential buildings (6.36% of the total submitted projects) have been renovated. To provide additional support to Latgale residents and promote apartment building renovation in this region, projects achieving at least a 10% reduction in primary energy consumption will also be eligible. These projects can receive a capital discount of 40%, up to a maximum of €80,000. Funding of €10 million is allocated for such projects in Latgale.

The program will support the preparation of technical documentation, construction work on building enclosures and common areas, renovation or creation of engineering systems, purchase and installation of microgeneration energy production equipment (e.g., solar panels, collectors), construction supervision, project management, and other project-related activities.

The new program introduces a simplified application process, allowing the reservation of capital discounts by submitting an energy certificate and cost summary. Applications can be submitted using a “simplified” building energy certificate, which is based solely on measured energy efficiency data (e.g., meter readings). This document has significantly lower preparation costs and a shorter preparation time compared to previous energy certificates.

Under the ESCO program, companies can act as intermediaries and project managers, overseeing project implementation, financing, and target achievement without directly performing energy efficiency improvement works.

It is planned that Altum will start accepting project applications for this support program in the coming months. To explain the application requirements and process, Altum will host an informational seminar about the new program in February next year. Interested parties are encouraged to follow updates on the Altum website.

Since 2007, with co-financing from EU funds, 1,367 buildings have been renovated for a total funding of €279 million. Under the Recovery Fund, 166 project applications have been submitted for a total of €57.28 million.

More information about the new support program is available on the Unified Legal Acts Portal.

Ministry of Economics
Public Relations Department
prese@em.gov.lv