1. What the rate depends on
Three factors are named in the conditions. They determine the rate applied.
| Factor | Content |
|---|---|
| The settlement unit | whether the building is in Tallinn or Tartu, in their neighbouring municipalities, or elsewhere |
| The market value of property per square metre in the area | taken from the national transactions database |
| The technology used | using prefabricated elements raises the rate |
The rate is highest where property values are lowest and lowest where they are highest. According to professional sources, the rate for reconstructing an apartment building in Tallinn and Tartu is thirty per cent.
2. Why this guide states no table
A deliberate choice whose reason is worth stating. The rate depends on location.
The rate bands and the property value thresholds separating them have changed over time. Available sources give differing thresholds for the same system, which suggests the conditions have been adjusted between rounds. And the rate also depends on settlement units listed by name, a list that is long and changeable.
A wrong rate is directly harmful here, because the whole funding plan and the size of the own contribution depend on it. The applicable rate must be taken from the support regulation in force and from the conditions of the open round rather than from an overview.
3. Why the logic is as it is
Three justifications are political rather than technical. They concern regional balance.
Where property values are high, owners have greater borrowing capacity. Where values are low, a renovation may not pay for itself through property value, so without a higher rate it would not happen at all. The measure is therefore an instrument of regional balance as well as of energy policy.
The practical consequence for a client is that the same building with the same design attracts different support in different places, and that is not an error. In professional terms it means that a funding plan cannot be carried over from one site to another, even where the buildings are identical.
4. What raises the rate
One factor is technological rather than geographical. It concerns prefabricated solutions.
According to professional sources, using prefabricated elements raises the support rate. A prefabricated element means a facade or roof element made in advance in a factory and installed on site, and the eligible activity covers their design, manufacture and installation together with the associated works.
The advantage is not only financial: a factory-made element shortens the time spent on site, which in an occupied building is a value in itself, as covered by the article on living in the building during works. Using prefabricated elements also affects the arrangements for paying out the support, the conditions for which must be checked in the regulation.
5. What it means for the funding plan
Three steps, and the third belongs at the start of the design. Later the choice has already been made.
Establish the applicable rate before drawing up the budget. Calculate the own contribution on that basis, as covered by the article on own contribution. And consider the prefabricated option where it is technically possible for the building.
The third belongs at the start of the design because a prefabricated solution affects the design as a whole rather than only the price. Afterwards the solution can no longer be changed.
Summary and four practical rules
The support rate depends on the settlement unit, on the market value of property in the area and on the technology used rather than on the condition of the building, and in Tallinn and Tartu the rate for an apartment building is thirty per cent according to professional sources. This guide states no table of rates, because the bands and thresholds have changed over time and available sources give differing values for the same system. The rate is highest where property values are lowest, which makes the measure an instrument of regional balance.
Four rules: take the rate from the regulation in force and from the conditions of the open round. Do not carry a funding plan over from another site, even for an identical building. Consider prefabricated elements early, since it is a design decision. Explain to owners that the rate depends on location rather than on the condition of the building.
This article offers professional orientation as at the date of verification. It does not replace the support regulation.