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Energy Reducing Equipment

With amendments to the laws on subsidies for home heating costs, the possibility was introduced for the government to participate in the initial costs of environmentally friendly energy production that reduces electricity heating or oil consumption. Electricity heating can be reduced through various means, including the use of heat pumps, wood heating, etc.

Apartment owners who currently receive subsidized electricity heating and wish to adopt environmentally friendly energy production and/or implement measures that lead to improved energy efficiency in heating can apply for a subsidy. This concerns a one-time subsidy for measures that result in better energy efficiency in heating.

The subsidy is calculated based on the purchase of equipment and material costs for its installation and covers half of the total material costs, up to a maximum of 1,429,000 ISK. The subsidies are not affected by this grant and continue according to usage, up to a maximum of 40,000 kWh/year. A contract is made for the grant, which applies for 15 years on the respective property. After that period, a similar subsidy can be applied for on the same property.

Applications can be submitted in two ways:

  • Fill out the application in the Service Portal on the National Energy Authority's (NEA) website.
  • The NEA will send the form to those who request it. You can also call 569 6000 or send an email to nidurgreidslur@os.is.

*With the application, all invoices related to the installation should be submitted (itemization of invoices is especially important, particularly in the case of new constructions), along with photos of the installed equipment both inside and outside.*

Eligible costs for the installation of a heat pump:

  • Heat pump

  • Mounting and all additional equipment with the heat pump

  • Material costs from electricians

  • Piping material costs

  • Transportation costs of the heat pump

  • Part of the trenching and core drilling costs for the connection of the geothermal heat pump