Five energy-saving housing measures with craftsman's tax credit

You still have time to take advantage of the state tax credit for energy-saving improvements to your home. However, the craftsman's allowance will end on 1 April this year, which means you will no longer be able to use the scheme.

Date 12.01.22

Five energy-saving housing measures with craftsman's tax credit

You still have time to take advantage of the state tax credit for energy-saving improvements to your home. However, the craftsman's allowance will end on 1 April this year, which means you will no longer be able to use the scheme. The deduction is a total of DKK 12 900 per person and the offer applies to energy-saving home improvements in both year-round homes and holiday homes. This means that you can take a step towards a more energy- and climate-conscious home and save a little on the way.

Even the smallest energy-saving improvement is good

There are up to several ways to make your home or holiday home more energy efficient. The craftsman's deduction could provide financial assistance for one or more of these measures. You may not even need to install a heat pump in your home first. You can use the craftsman's deduction for improvements that optimise the household's current heating. In this way, you will be able to make better use of your current heating, thereby generating savings in your personal finances and on your climate account.

Here we look at five key energy improvement solutions where the craftsman's deduction could help green the private sector.

Installation of solar cells

Solar PV is an important part of the Danish green transition and Denmark's mission to achieve a 70% CO2 reduction by 2030. More and more private households are installing solar panels on their roofs. 2021 was actually a record year for solar energy production in Denmark[i]. 3.6 percent of all Danish energy was generated via solar cells, and this is mainly due to private homes increasingly embracing this energy production. Private solar PV installations have fallen in price over the past few years, and you can use the craftsman's deduction for professional installation of your own solar cells if you wish. With photovoltaics, you create a direct pathway to electricity from renewable sources, adding a new green option to your home's overall energy mix.

Do you use Watts app for electricity prices and have solar cells, you can also track how much power you have supplied to the grid minus the power you have consumed.

Replacement of leaking windows and doors

You don't necessarily have to replace your entire existing heat source to save the climate from unnecessary energy consumption and increase your energy efficiency. Leaky windows and doors are a source of major energy waste in Danish homes. It is estimated that an average Danish household loses up to a third of its heat due to leaky windows and doors that insulate insufficiently[ii]. Replacing or repairing old windows can therefore be an overlooked but significant source of energy savings.

Insulation and post-insulation

In line with leaky windows and doors, you can also choose to claim deductions for insulating or reinsulating your holiday home. You can get deductions for virtually any type of insulation, from insulating ceilings and roofs to walls, exterior walls and floors. The insulation could have a direct positive impact on both the climate and your economy, as there are significant energy savings to be made. As well as reducing heat consumption, insulation and retrofit will also create a better indoor environment.

 

Installation or repair of domestic wind turbines

Denmark's green transition is largely supported by the more than 6,000 wind and offshore wind turbines across the country. But you can actually create your own wind energy at your summer house or holiday home. The craftsman's deduction supports the installation and repair of private household wind turbines, which can supplement sustainable energy for the household. Today, there are over 1,300 household wind turbines on private land in Denmark. The smallest can supply the equivalent of a quarter of an average household's electricity consumption, while the largest (up to 25 kWh) can supply the entire household with energy[iii].

Installation of heat pump

As part of the green transition, the replacement of gas and oil boilers plays an important role in achieving the climate targets. Heat pumps are an excellent alternative as they are a much more efficient form of heating compared to the more CO2 emitting oil and gas boilers[iv]. The heat pump can also act as a much more sustainable source of heat in the summer house instead of the old CO2-emitting wood-burning stoves. If you already have a heat pump in your cottage or holiday home and want to remove the old stove, the craftsman's deduction actually covers the dismantling and disposal of the old stove[v].

Lower electricity heating tax just makes electricity heating even more attractive

As of January 2021, the government lowered the electricity heating tax, making it even more advantageous to choose electricity heating over other fossil heat sources. All households with an electricity heating consumption of more than 4,000 kWh will experience savings. The electricity heating charge above 4,000 kWh has thus been reduced to 0.8 cents per kWh. This will create savings of up to 35% of all Danish households with electric heating.[vi]

Get an overview and more control over your electric heating with the Watts app

Switching to a heat pump could also give you a better overview of your consumption. With the Watts app, you'll be able to get instant insight into the day's electricity prices hour by hour, so you'll be able to navigate around the most expensive electricity prices during the day. You will also get a unique insight into the respective energy sources from which the current electricity is produced. As a user, you will be able to select power zones where your energy is produced from the most renewable sources possible.

With the implementation of one or more of the energy saving measures mentioned, you should also feel an immediate positive effect in your energy consumption. With Watts, the new energy savings will be directly readable via our app.

 

[i] dr.dk/news/weather/sun-set-record-straw-production-last-year

[ii] bolius.dk/energy-improvement-windows-16513

[iii] bolius.dk/saadan-er-livet-med-en-vindmoelle-90845

[iv] sparenergi.dk/consumer/heat/heat-pump/facts-about-heat-pumps

[v] skat.dk/skat.aspx?oid=2234759

[vi] danskenergi.dk/news/lower-heat-tax-is-loaded-power

 

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