Smaller-than-expected home improvement subsidies are forcing people to give up energy efficiency improvements

Many of the 40,000 homeowners receiving money from the state to help fund home improvements are giving up their plans after finding that the amount is significantly less than expected, reports Business.dk.

The government set up its 1.5 billion kroner ‘green renovation fund’ in April as a way to stimulate economic activity, while at the same time encouraging people to make energy efficient home improvements.

The Enterprise and Construction Agency, the organisation managing disbursement of the funds, calculates the pool will generate 6 billion kroner worth of home improvements. Representatives for tradesmen say, however, that while a lot of estimates were made this spring, few have turned into paying jobs.

They blame a first come, first served distribution procedure that saw 75,000 of the 117,000 applications submitted on the first day alone.

‘It was a matter of apply first, think later,’ said Tea Gade-Rasmussen of the Craftsmen’s Guild.

The slowdown could be a summer slump, according to Gade-Rasmussen. She expects the full impact of the pool to be known by October. 

It was originally estimated that each applicant would receive an average of 13,000 kroner, but many that received funds will not use of them because the amount was less than expected for their project and they cannot afford to make up the difference.

Application for new funds is closed, and according Enterprise and Construction Agency unspent funds will be paid out to the 3000 people on the waiting list.

The Board will renovate the pool boost housing for around six billion dollars the next few months.