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Electricity & gas · Iceland
Checked 2026-09-30

🏠 Grants for a heat pump or insulation in Iceland: where do I apply?

The short answer

Most countries support home renovation with grants, tax credits or cheap loans. The schemes change often, so always check the official portal before you order work.

📜 The rules in Iceland

Grants for heat pumps and insulation

Homeowners with subsidised direct electric heating who switch to an environmentally friendly source, such as a heat pump, can get a one-off grant (eingreiðsla) from Umhverfis- og orkustofnun: half the material cost excluding VAT, at most ISK 1,567,000.

  • The grant is based on Act no. 78/2002 on subsidies for home heating costs and Regulation no. 698/2013. Apply through the form linked on the agency's page. (uos.is)
  • Since 1 July 2023, owners of residential housing get 35% of the VAT on on-site labour for maintenance, renovation and new building refunded. You can apply up to six years after the work. (skatturinn.is)
Umhverfis- og orkustofnunPays the one-off grant for switching from subsidised electric heating🔗 uos.is
SkatturinnRefunds VAT on labour for work on residential housing🔗 thjonustusidur.rsk.is
Official source: uos.is · Checked 2026-09-30

🪜 Step by step

  1. Find the national schemeThe official schemes in Iceland and who runs them are listed below.
  2. Check the conditions before you orderMany grants must be requested before the work starts, and often need a certified installer or an energy audit.
  3. Get quotesAsk for several quotes that state the equipment and the performance the scheme requires.
  4. Apply on the official portalUse only the official website below. Keep invoices and certificates for the payout or a check.

📇 Who to contact

Umhverfis- og orkustofnunPays the one-off grant for switching from subsidised electric heating🔗 uos.is/orka/orkuskipti/hushitun/eingreidsla
SkatturinnRefunds VAT on labour for work on residential housing🔗 thjonustusidur.rsk.is
Orkusetur (Umhverfis- og orkustofnun)Free advice on energy costs and saving energyWhen bills are too high or you are behind on payments🔗 orkusetur.is

❓ Questions

Can I still apply after the work is done?

Often not. Many schemes require the application before the work starts. Check the official portal.

Is there extra help on a low income?

Some schemes pay more to low-income households. The portal below explains who qualifies.

Someone offers to handle the grant for me. Is that safe?

Be careful with door-to-door or phone offers. Check the company and apply through the official portal.

📎 Sources

Checked: 2026-09-30

🧭 Is this still correct?

We check this information carefully, but phone numbers, websites and rules change — and sometimes we get something wrong. Spotted a mistake or a change? Let us know below.

🔗 Also useful

🌡️District heating, oil and LPG→🤝Help with energy costs→🔄Switching supplier→📈Price increase→🧾Wrong or high bill→

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