Poland’s sole nationwide thermal modernization subsidy program has been suspended due to funds depletion, leaving multifamily building residents in a critical situation and highlighting gaps in the country’s energy transition planning.
The Only Such Support Program Suddeny Ran Out of Funds. “That’s How the Transformation Will Not Succeed”
Program Halt Sparks Concerns
In early August, the Polish Development Bank (BGK) announced it would suspend applications for the Thermal Modernization and Renovation Fund. The funds for the subsidies related to thermal modernization and renovation have run out.
Subsidy Details and Key Beneficiaries
The BGK subsidy enables investors, such as housing associations and cooperatives, to cover part of a loan taken for building thermal modernization or renewable energy installations.
Targeting Single-Family Homes
The largest program—a nationwide initiative called “Clean Air”—is specifically for residents of single-family homes. BGK’s funds support renovation work in apartment blocks and multi-family buildings.
Tomasz Walczak Warns of Systemic Gaps
According to Tomasz Walczak, founder and vice-president of Euros Energy, the thermal modernization subsidy is the only nationwide program systematically supporting multi-family buildings and combating energy waste. He emphasizes there is currently no alternative.
Residents Left in Limbo
Walczak notes the funding interruption occurred abruptly. On August 7, BGK published a notice stating funds had been exhausted, pausing the program from August 8. This sudden halt surprised individuals already in the application process, especially those relying on the combined BGK program for renewable energy grants (OZE).
Urgent Need for Thermal Modernization
Thermal modernization for multi-family homes is rarely discussed compared to the “Clean Air” program for single-family homes, Walczak argues. While many buildings have been insulated, over 70% still fail to meet energy efficiency standards. Full modernization can eliminate reliance on coal heating, reducing costs significantly.
Costs Depend on Energy Prices
Walczak explains that profitability hinges on heating costs. In areas like Ruda Śląska, where heating costs are about 270 zł per GJ, residents can slash expenses by 400–600 zł annually through complete modernization and switching heat sources.
Funds Depletion Was Anticipated
According to the Ministry of Development and Technology, which oversees the Thermal Modernization and Renovation Fund, 240 million zł were allocated for the program this year (87 million zł for the modernization subsidy). BGK warned this amount would not sustain operations in 2025 without additional funding. Over 1,366 applications totaling over 307 million zł were submitted this year, far exceeding last year’s volume.
No Timeline for Program Resumption
Walczak states Euros Energy has clients who were mid-process when the program paused. BGK claims pending applications will be prioritized once funds become available but provides no clear timeline. Questions to the Ministry about additional funding plans and the mismatch between budget and energy transition goals remain unanswered.
Systemic Challenges in Energy Transition
Walczak acknowledges the funds’ depletion reflects program success, but warns of a lack of long-term planning. Poland’s energy transition, particularly in the building sector, faces systemic issues, he argues. A new heat supply bonus (500 million zł this year, 1 billion zł next) will not solve the problem, as funds could instead be directed toward lasting insulation and modernization.
Source: Gazeta, Bank Gospodarstwa Krajowego, Ministry of Development and Technology, Euros Energy.
