More than 1,100 Swedish villa owners may miss out on promised energy efficiency grants. The government program has run out of funds despite homeowners making investments based on the support.
Fabian Lindh from Bromma, Stockholm invested in a new heat pump during May. He rushed renovations to meet the application deadline. Now he faces losing 30,000 SEK ($2,800) in expected support.
"30,000 kronor is substantial money for us right now," Lindh said in a statement. "We did this to reduce electricity use and improve efficiency. We did it for ourselves and for society."
The energy efficiency grant program launched in 2023. It offered up to 30,000 SEK for improvements like heat pumps and insulation. Applications surged just before the June 1 deadline.
The allocated 300 million SEK ($28 million) for this year cannot cover all applicants. County administrative boards report receiving constant calls from disappointed homeowners.
"Many people are contacting us," said Johan Petrén, a case manager at the County Administrative Board. "My colleagues and I spend hours daily answering questions about this."
The funding gap ranges between 20-40 million SEK ($1.9-3.7 million). Officials confirm they cannot pay retroactive support next year without new government regulations.
The government recently proposed extending the program through 2030. The plan would add 300 million SEK annually and increase maximum grants to 60,000 SEK. However, it offers no solution for current applicants who invested expecting support.
Homeowners made financial decisions based on government promises that now appear empty. The situation reveals poor planning in Sweden's green transition efforts.
Can homeowners receive retroactive payments next year?
"That depends entirely on how the government formulates its new regulation," Petrén explained. "As things stand now, we have no possibility to pay money next year."