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Significant Detail Revealed About the Home Renovation Program

A crucial piece of information has been disclosed regarding the new home renovation program: the amount of non-repayable support one can receive will depend on the income conditions characteristic of their municipality.
While this was previously known, the Ministry of Energy and the Ministry of National Economy have now revealed where the boundaries are set. The most significant support will be available to those whose place of residence has a net average monthly income below 312,450 forints.

The government is gradually releasing details of the home renovation program, intended to be announced in early June, just days before the municipal and European Parliament elections, with a total budget of 108 billion forints. It has now been clarified how differentiation will be made among applicants from different municipalities, indicating how much personal contribution will be required in the energy renovation of family houses targeting investment.

Through the program, an investment of up to seven million forints per applicant can be supported, provided that these investments achieve at least a 30 percent energy saving on the property. The majority of the amount will be personal contribution: one million forints must be initially invested, with six million forints financed partly through subsidized loans and partly through non-repayable grants under the National Recovery and Resilience Plan REPowerEU chapter.

It was already known that the non-repayable support would vary for everyone, depending on the district income conditions – how much the local average income deviates from the national average – to determine whether 2.5 or 3.5 million forints of the six million would be waived. On Friday, the Ministry of Energy and the Ministry of National Economy shared the details in a joint communication:

- Applicants in areas where the income does not reach 75 percent (312,250 forints net*) of the national average can access the highest support of 3.5 million forints according to the ministries, there are 63 such districts;

- Those in areas where the local average income falls between 75-110 percent (312,450 to 458,260 forints) of the national average can receive three million forints in support a characteristic of 96 districts,

- The lowest support, amounting to 2.5 million forints, will be available to those whose place of residence has an average income exceeding 110 percent of the national average (at least 458,260 forints net monthly) there are 38 such districts.

According to the latest data from the Hungarian Central Statistical Office, the national net average income of full-time employees, taking into account benefits, was 416,600 forints.

The ministries also noted that:

- The investment can exceed the seven million forints cap, but the supported financing can only be availed up to six million forints, requiring at least one million forints of personal funds,

- The support can be claimed for investment plans in family houses lived in on a habitual basis, including both single and multiple dwelling houses.

They also reminded of the nature of the supported works:

- Insulation of external limiting elements of the building,

- Replacement of doors and windows,

- Modernization of the domestic hot water system,

- Upgrading the heating system with a high-efficiency gas boiler, including related chimney lining and associated radiators (raising questions about whether the installation of central heat pumps or heat pump air conditioners would also be supported).

The program will be managed by the technical assisting organization of the Hungarian Development Bank Plc., the ÉMI Non-Profit Limited Company for Quality Control and Innovation in Building. Applications can be submitted at the commercial banks' MFB Points, expected from early summer until the end of 2026. According to the ministries, social consultation of the program is expected to begin in the coming weeks.
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