Energy renovation grants in Iceland
Discover all the subsidies, loans and tax credits available in Iceland to renovate your home.
4 programs documentedIcelandic Environment and Energy Agency (Umhverfis- og orkustofnun)Reference updated on May 20, 2026
Calculate your grants in a few clicks
The calculator applies all Iceland schemes below to your personal situation.
Grants for utilization and exploration of geothermal energy
ActiveClimate and Energy Fund (Orkusjóður) / IEEAGrant
Eligible works
Heat network connectionGeothermal heat pumpOther
Amounts
- 66% · Up to 2/3 of total project cost
- ISK 1,000,000,000 · ISK 1 billion overall envelope
Conditions: Geothermal projects in areas currently using electricity or oil for residential heating. Open to individuals, municipalities, energy operators, geothermal project developers. Applicant contribution required.
Geothermal Innovation and Technology Development Grants
ActiveGovernment of Iceland / IEEAGrant
Eligible works
Other
Amounts
- ISK 600,000,000 · ISK 600 million envelope (December 2025) distributed across 11 selected projects
Conditions: Geothermal innovation and technology development. The 11 beneficiary projects for 2026 have been announced.
Subsidy for electric heating without geothermal access
ActiveIEEA (heritage Orkustofnun)Grant
Eligible works
Other
Amounts
- ISK 40,000/kWh · Up to 40,000 kWh/year per household covered
Conditions: Households without access to geothermal district heating. Subsidy covers the distribution + delivery component of electricity used for heating, to equalise living conditions vs geothermally-heated households.
Geothermal connection subsidies
ActiveIEEA (ex-Orkustofnun)Grant
Eligible works
Heat network connectionGeothermal heat pumpOther
Amounts
- Project-based grant amount (up to 2/3 under ISK 1B envelope) · Project-based grant amount (up to 2/3 under ISK 1B envelope)
Conditions: Owners without district heating access seeking geothermal connection or installation. Apartment owners with subsidised electric heating may apply for a grant for measures improving electric-heating efficiency.
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