Housing company energy renovation – a board's guide to the stages, decisions and financing

When the building next door says it has cut its heating bill considerably, many housing company board members ask: should we do the same? This guide to a housing company energy renovation is written for board members who are not engineers. We go through the project’s stages, the decisions and majorities, the costs and savings of real housing companies, and the points at which the energy certificate and the E-value calculations come in (the E-value is a building’s calculated energy consumption, which determines its energy class). Two things are worth knowing right from the start: an energy renovation is usually decided by the general meeting by a simple majority, not by a qualified two-thirds majority. And if you apply for a grant for the project from Varke (the Housing Construction Centre of the Finnish State; until 1.3.2025 known as ARA), the order is locked: first the decision on the project and its financing, then the E-value calculations, then the application, and only after that the works. Varke’s energy grant 2026–2027 has been open for applications since 28.9.2026, and applications are processed in order of arrival for as long as the funds last.

Is an energy renovation worth it in our housing company?

Let’s start with the money. Energy is one of a housing company’s largest expense items:

Cost item	Share of the housing company's operating costs	Source
Heating	approx. 20–30 %	Motiva
Energy and water combined	typically 30–40 %	City of Helsinki
Property electricity	approx. 4 % on average	Motiva

According to Motiva, the state-owned sustainability company, in a block of flats the most heat escapes through the ventilation if the heat of the exhaust air is not recovered, and through the windows and external walls. In a terraced house, almost as much heat is lost through the top floor structure as through the windows. According to the City of Helsinki, a large energy renovation can make it possible to even halve heating costs, and in a block of flats heating costs can at best be cut by as much as 60 per cent. According to the city, the payback time of a large energy renovation in a housing company is currently typically 10–15 years.

The best moment is when some repair is coming up anyway: the design, scaffolding and excavation are then done only once. In the long-term maintenance plan (PTS), look especially at these:

Heat distribution centre. According to Motiva its technical service life is 20–25 years, and according to the City of Helsinki its renewal is a good moment to consider a heat pump solution.
Ventilation. When the ventilation units are renewed, heat recovery can be added.
Windows. From 1.10.2026 they fall under the company’s maintenance responsibility, unless the articles of association provide otherwise.
Facade and roof. Additional insulation is most affordable when done at the same time.
Pipe renovation. When a permit is applied for a pipe renovation, apartment-specific water meters are nowadays installed, and water is billed according to measured consumption.

If the aim is ground source heat, the City of Helsinki advises doing a yard renovation only after the ground source heat works. Varke’s grant, on the other hand, is awarded only in 2026–2027.

The board can order a few low-cost measures itself, as long as they fit within the approved budget. According to Motiva, 17–18 °C is enough for stairwells and warm storage rooms, and an indoor temperature one degree lower means 5 per cent less heating energy (the City of Helsinki recommends 17 °C for stairwells). For example, in the City of Helsinki’s energy inspections, the stairwells of all four inspected housing companies were above 20 degrees. According to the city, air leaks in the windows and doors of common areas can waste as much as 10 per cent of the whole company’s heat. According to Motiva’s estimate, basic balancing of the heating network (adjusting the radiators and the heating network so that heat is distributed evenly to all apartments) can save as much as 10–15 per cent of energy consumption, but the result depends heavily on the starting point. Timing is decisive: the balancing is done in connection with a window renovation and after a ventilation renovation, not before them, and the actual adjustment during the heating season, when the daily mean temperature is −5 °C or colder. More measures can be found in the article energy saving, and we cover the renovation order and prices for a detached house in the article energy renovation.

Where to start: baseline data, the energy certificate and the energy survey

The board already has two important documents at hand. The first is the maintenance needs report (kunnossapitotarveselvitys), in practice a report based on the PTS: the board must present to the annual general meeting a written report on the maintenance needs for the next five years, and the information is also submitted to the housing information system of the National Land Survey of Finland (Maanmittauslaitos). The second is the building’s energy certificate. Certificates for buildings with more than two apartments are shown in the public energy certificate register, and you can also check the company’s certificate with our energy certificate check tool. We cover the housing company’s certificate in more detail in the articles energy certificate for an apartment building and energy certificate for a terraced house.

The differences between the reports in brief:

Report	What it tells you
Energy audit	Analyses the consumption of heat, property electricity and water, assesses the condition of the technical systems and the indoor conditions, and proposes measures with their savings and payback times.
Energy inspection	A lighter HVAC-technical report – a good first step if the need is still unclear.
Condition assessment	Tells you the repair needs of the building and its technical systems. Motiva recommends updating it every 5–7 years.

The City of Helsinki speaks of an energy survey: according to the city it usually costs a few thousand euros and can include, for example, a comparison of heating methods and an E-value review. The more extensive the renovation, the more useful the survey. Gather the following for the designer in advance: three years of energy and water consumption, the temperatures of the apartments and common areas during the heating season, the PTS, a description and the condition of the heating and ventilation systems, information on the electrical system, the condition of the top floor structure or roof, and any hazardous substance surveys carried out.

Free and impartial advice is available from many sources. The experts of Helsinki’s energy advice for housing companies (Taloyhtiöiden energianeuvonta) can join board meetings and general meetings and help you compare tenders. Ilmastoinfo of HSY (Helsinki Region Environmental Services) advises housing companies in Helsinki, Espoo, Vantaa and Kauniainen, Neuvoo.fi those in Pirkanmaa and Kanta-Häme, and Valonia those in Southwest Finland (Varsinais-Suomi). Elsewhere, you can find your own region’s adviser in the regional directory of the Energy Authority (Energiavirasto). The advisers give advice, but the housing company orders, carries out and pays for the surveys and renovations itself. We cover heating and system options in the article energy design.

The project’s stages from idea to finished renovation

Compiled from the guidance of the City of Helsinki, Motiva and Varke, a housing company energy renovation proceeds as follows:

Stage	Who	Output	Energy certificate and E-value calculations	Link to Varke
1. Kick-off and needs assessment	Board and property manager	Review of the PTS and consumption; advice, quotes or a consultant	Current certificate brought out	Preliminary estimate of the grant
2. Mandate for a study	General meeting	Authorisation and budget for a survey or project planning	–	Design costs are eligible for the grant
3. Energy survey and project planning	Board and designer	Options and cost estimates; information events for shareholders and residents as good practice	E-value review of the baseline and the target	Confirm that the E-value condition is met
4. Determining the permit requirement	Board and designer, building control	Information on whether a permit is needed; a building permit if necessary	Energy report, if building control requires one	Under Varke's guidance, determined before the decision
5. Decision on the project and its financing	General meeting	Minutes that also cover the financing	–	Mandatory attachment to the application
6. Grant application	Property manager	Application with all its attachments	E-value calculations for the baseline and the target	Before the works start
7. Tendering and contracts	Board	3–5 tenders itemised by measure, construction contract, supervisor	–	Share of commercial premises separately
8. Implementation	Contractor and supervisor	The company's notices to shareholders and residents in good time; basic balancing in connection with the window works and after the ventilation works	–	Varke may require inspections
9. Handover and monitoring	Board and supervisor	Handover, user instruction, monitoring of consumption	E-value calculation after the repairs and a new energy certificate	Payment application

Permits in plain language: under the Building Act (rakentamislaki), the energy well of a ground source heat system always requires a building permit, as does a repair in which a change to the external envelope (external walls, roof, base floor, windows and doors) or to the technical systems can significantly affect the building’s energy efficiency. Depending on the nature and scope of the project, building control may also require an energy report with the permit application. So ask your municipal building control about the permit requirement already at the design stage. The current act is available on Finlex.

How long does all this take? According to the City of Helsinki, a larger energy renovation can take a couple of years, and in the city’s example cases the journey from idea to finished renovation took about 1–4 years. According to the project planning guide of Kiinteistöliitto Pirkanmaa (the regional property owners’ federation), the project planning of a larger project typically takes about 4–6 months (a practice, not a requirement), and according to Motiva, in a heat pump project it can take as long as several months from the requests for tenders to commissioning.

Who decides – the board or the general meeting, and by what majority?

The Limited Liability Housing Companies Act (asunto-osakeyhtiölaki) in plain language: the board takes care of the company’s administration and the upkeep of the property, but far-reaching matters and matters that materially affect the maintenance charge (vastike) belong to the general meeting. Maintenance is decided by a simple majority, and so is an improvement paid by all shareholders through maintenance charges, such as an energy renovation, when the conditions listed in the act are met. A qualified two-thirds majority is only needed, for example, when amending the articles of association. The latest amendments entered into force on 1.10.2026, and the current act is available on Finlex.

Decision	Who decides	By what majority
Small measures within the approved budget	Board	Board decision
Maintenance that is extensive or materially affects living or housing costs	General meeting	More than half of the votes cast
An energy efficiency improvement paid by all shareholders through maintenance charges	General meeting	More than half of the votes cast, when the payment burden does not become unreasonably severe and one of the grounds listed in the act is met – for example, the building is brought up to a contemporary standard, or the environmental sustainability of the building's use, for example its energy efficiency, is significantly improved to a level corresponding to new construction
An improvement exceeding the usual standard of the time	General meeting	More than half of the votes cast, but significant costs are paid only by the shareholders who have consented to it
Amendment of the articles of association, for example a new basis for the maintenance charge	General meeting	At least 2/3 of the votes cast and of the shares represented at the meeting, plus the consent of everyone whose payment obligation increases (exception: a switch to a charge based on measured water consumption is decided by a simple majority without consents)

According to the preparatory works of the act, unreasonableness is assessed case by case, and the decisive factor may mainly be how much the monthly maintenance charge rises – so the repayment period matters. Being brought up to a contemporary standard and the improvement in environmental sustainability are also assessed case by case, so have the draft resolution checked by a lawyer. According to the preparatory works, ground source heat that replaces or supplements the company’s district or central heating is in principle consistent with the equal treatment of shareholders, if the implementation is conventional. Replacing apartment-specific electric heating with central heating financed through maintenance charges may, on the other hand, in practice require the consent of all shareholders (see energy renovation of an electrically heated house). Draft resolutions must be available for shareholders to view at least two weeks before the meeting. If the company has at least five apartments with different owners, residents also have the right to speak at the general meeting when a repair materially affects the use of their apartment or of the common areas. The time limit for challenging a decision is three months.

What does an energy renovation cost and what does it save – examples from housing companies

There is no general price list, because every building is different. That is why we gathered realised examples from the City of Helsinki’s energy renovation pages and from Motiva’s basic balancing examples:

Property	Building completed	Measure	Investment	Savings	Payback	Renovation
As Oy Sulkapolku 6, Helsinki, 144 apts	1973	Exhaust air heat pump	not disclosed	approx. €30,000/year	almost 6 years (calculated 7 years)	2018
Katajaharjuntie 15, Helsinki, 24 apts	1969	Exhaust air heat pump, ground source heat and solar power in place of district heating	not disclosed	heating costs −65 % (starting point approx. €30,000/year)	15 years (preliminary calculation)	2021
As Oy Sirkkalanmäki 52, Helsinki, terraced house, 44 apts	–	From natural gas to air-to-water heat pumps	not disclosed	€35,000 in the first year	approx. 5 years	started 2022
As Oy Vihreä Kulta, Helsinki	1966	Ground source heat in connection with a pipe renovation	€240,000	€19,000/year	10 years (company's calculation)	2022
As Oy Pajamäentie 2, Helsinki, 30 apts	1959	Basic balancing of the heating network, and equipment	€28,000 (balancing work €12,000)	16 MWh/year, i.e. 5 %	not disclosed	2013
As Oy Saarenvainionkatu 17, Tampere, 33 apts	1971	Basic balancing of the heating network	€10,081	approx. 39 MWh/year, i.e. over 10 %	not disclosed	2010

The figures are mostly as reported by the board chairs and at the prices of their time, and they are not typical or guaranteed results. Some of the properties received ARA’s energy grant at the time, and its conditions do not describe the 2026–2027 grant: for example, switching from district heating to ground source heat is not an eligible change of heating method under the new grant.

How to read the payback time:

Separate maintenance from the energy investment. At Lokkisaarentie in Vuosaari, the payback time of the whole renovation was estimated at about 15 years, but when the measures that belonged to normal maintenance, such as renewing the ventilation units, were stripped out, the payback was estimated at 7–11 years depending on the building.
Calculate with several energy prices. Ground source heat usually eliminates the district heating bill but increases the electricity bill, so profitability depends on the prices of both.
An air-to-water heat pump needs a second heat source alongside it in winter, for example district heating. More on the technology in the article air-to-water heat pump. A hybrid of ground source heat and district heating can also make sense if the plot cannot fit enough energy wells to give up district heating altogether.
Check the notice period of the district heating contract. At Vihreä Kulta it was five months.

We do not give a general figure along the lines of “ground source heat saves X per cent”, as the savings always depend on the building and on energy prices.

How does Varke’s grant fit into the project?

We compiled the grant’s conditions, amounts in euros and E-value requirements in a separate article. Here we explain what the grant changes in the board’s work.

The order is locked. First a legally valid decision on the project and its financing, then the E-value calculations, then the application with its attachments, and only then the works. Applications in 2026 have transitional flexibility: the costs of works already started can be taken into account if the tenders were accepted or the construction contract signed and the works started on 1.6.2026 at the earliest, and the application with its attachments reaches Varke by 31.12.2026 at the latest – subject to conditions, so check your own situation with Varke. From 1.1.2027, works may not start before the application.
Ask about legal validity. The time limit for challenging a general meeting decision is three months. The application guide does not say whether a decision recorded in the minutes is sufficient for the application or whether the challenge period must expire first. Ask Varke about this and leave some slack in the schedule.
Attachments first. Applications are processed in order of arrival, but processing only starts once all the attachments have been submitted. It pays to have the trade register extract, articles of association, minutes, E-value calculations and a cost estimate itemised by measure ready in advance.
The baseline is the E-value at the time of construction, not the current state. By our own reasoning, it follows that improvements made earlier can help in reaching the target – confirm this with Varke.
The grant is paid afterwards, in one instalment once the project is completed, so the company must first finance the contract itself. The grant can be paid in the year it is awarded and the two following calendar years, and the payment application must reach Varke by 31 October of the last payment year. Our own example calculation: for a grant decision made in 2026, the deadline is 31.10.2028.
District-heated buildings and heat pumps. A change of heating method is eligible only when oil or gas heating is given up. In a district-heated building, a heat pump as the main heating is therefore not an eligible change of heating method. In the application guide’s table, the exhaust air heat pump (PILP) is on the row for ventilation heat recovery. If the exhaust air heat pump is sized as the building’s main heating, or if it is a hybrid, ask Varke how it is treated before the decision.
Itemised tenders. The costs of the energy measures must be separated from other renovation costs, and the share of commercial premises from that of the apartments, so request tenders itemised by measure.
Authorisation in good time. If the property manager does not have the right to sign on behalf of the company, they need the Suomi.fi authorisation “Asuinrakennusten korjausavustusten hakeminen” (applying for renovation grants for residential buildings). It can be granted already now.
Design is eligible too. Design, E-value calculations and energy certificates are among the eligible costs – design costs from 20.4.2026 onwards.

It pays to keep expectations realistic. According to a memorandum of the Ministry of the Environment, on the previous round in 2020–2023 apartments in blocks of flats received an average grant of €2,900 and terraced house apartments €3,400, which was about 20 per cent of the projects’ budgets. The ministry estimates that reaching the required level usually calls for a combination of several measures. The figures are historical, not a promise. You can estimate the order of magnitude with our Varke grant calculator – the result is an estimate, not a grant decision. Varke’s advisory service serves housing companies at energia-avustukset.varke@gov.fi and on 029 525 0558 (check the telephone hours on Varke’s website).

Financing: loan, maintenance charge and a shareholder’s lump-sum payment

A large renovation is usually financed with a company loan that the shareholders pay off through maintenance charges. For example, As Oy Asemapäällikönkatu 2 in Pasila took out a green bank loan with a 15-year loan period for its renovation. In the act, the charge collected to service a loan is the capital charge (pääomavastike); the colloquial “financing charge” (rahoitusvastike) means in practice the same thing. The possibility to pay off one’s own share of the loan in one go is not a statutory right of the shareholder: it is decided at the general meeting or based on the articles of association. The repayment period also affects decision-making: in assessing whether the payment burden is unreasonably severe, the decisive factor may mainly be the rise in the monthly maintenance charge, and a longer loan period lightens the monthly instalment.

Savings can carry the loan: in Töölö, the housing company at Kivelänkatu 1 b paid off the bank loan for its ground source heat renovation in eight years without raising the maintenance charge. It is an example, not a promise. Remember bridge financing too, as Varke’s grant only arrives after the project is completed.

Where do the energy certificate and E-value calculations come in?

The certificate and the calculations accompany the project from start to finish:

Starting point. Does the company have a valid certificate, and what does it reveal about the building’s weak points? Check it with our tool.
Energy efficiency report. Determine which measures achieve the grant’s E-value requirement most affordably.
Grant application attachments. Calculations of the E-value at the time of construction and after the repairs. An existing certificate can be used as the baseline only if it has been calculated according to the current energy certificate decree (1048/2017) and reflects the building’s original solutions. Varke recommends that they are prepared by a qualified energy certificate assessor.
Payment. An E-value calculation after the repairs, which must be prepared by a qualified energy certificate assessor, and a new energy certificate.
Building permit. The energy report for the renovation project, if building control requires one.

A new certificate is also a selling point, as the energy class must be stated in public sale and rental listings of apartments. However, the calculated E-value is not the same thing as actual consumption: it is calculated with standardised use so that buildings can be compared with one another. We explain why the calculation and the bills differ in the article how a house’s energy class is calculated, and the basics can be found in the article E-value.

Frequently asked questions about a housing company energy renovation

Can a shareholder get the household expenses credit?

The household expenses credit (kotitalousvähennys) is not available for work that falls under the company’s responsibility, even if the shareholder pays the contractor directly, nor for work paid to the company as a maintenance charge or other payment. For work under their own responsibility that the shareholder orders and pays for themselves, the credit can be granted – even when the housing company receives a grant for the renovation. As the responsibility for windows changed on 1.10.2026, check the status of window work in the table of the Finnish Tax Administration (Verohallinto) before promising shareholders anything.

Does the EU force housing companies into an energy renovation?

Not according to the current proposals. The targets of the EU Energy Performance of Buildings Directive – reducing the primary energy use of residential buildings by at least 16 per cent by 2030 and by 20–22 per cent by 2035 compared with 2020 – apply to the average of the country’s entire building stock, not to an individual building. According to Government proposal HE 164/2026, no building-specific obligations would be imposed on existing residential buildings, and the renovation passport proposed in Government proposal HE 155/2026 would be voluntary. Both are still only proposals before Parliament. More in the article EPBD and housing companies.

Can the board decide on a renovation itself?

Only on small measures that fit within the approved budget. The act contains an exception for urgent situations in which waiting would cause the company material harm, but a planned energy renovation is not such a situation. According to the preparatory works of the act, however, the general meeting can authorise the board to decide, for example, on the timing of a maintenance measure and the details of its implementation.

How to get started

Five things for the next board meeting:

Bring out the PTS and the current energy certificate – check the certificate with our tool.
Gather the energy and water consumption for the last three years.
Book free advice or request a quote for an energy survey.
Prepare a proposal for the next general meeting on a mandate for a more detailed study.
Give the property manager a Suomi.fi authorisation to apply for the grant.

Once the direction is clear, we will help with the calculations. Request a quote for an energy efficiency report, the E-value calculations required by Varke (baseline and target) and the energy certificate after the repairs – design and E-value calculations are themselves eligible costs. Take a look also at our services and our energy certificate service, and estimate the order of magnitude of the grant with the Varke grant calculator – the result is an estimate, not a grant decision.

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