Since October 2016, the government has supported investment to stimulate renovation and greater energy efficiency of rental housing in areas with socio-economic challenges. The government allocated SEK 800 million for the aid in 2016 and has proposed SEK 1 billion annually for 2017-20.
The aid consists of two parts that relate to renovation and energy efficiency measures. Support is only provided to projects that achieve at least a 20% improved energy performance and provide renovations that improve the quality of the building. The energy efficiency improvements need to be reported in an energy review. The aid for energy efficiency measures is up to 5% of the total renovation cost and goes to the property owner. The renovation aid provides 20% of the cost of renovation, which goes directly to the tenants through a rent reduction over a seven-year period.