Renewable energy subsidies and fees

Estonia has more than enough potential to meet domestic electricity and heat demand with domestic renewable energy production. In order to encourage the production and consumption of renewable energy, the state has regulated the payment of fees and subsidies for renewable energy.

Reverse auctions

Since 2018, the renewable energy subsidies are granted through reverse auctions. The purpose of the auctions is to find and support electricity producers from renewable energy sources at the cheapest price. The volume and announcement of tenders are determined according to the state’s renewable energy targets. The conditions for paying the renewable energy subsidy are regulated by § 59 of the Electricity Market Act. The renewable energy subsidy is paid out by the transmission grid operator Elering. Read more about the reverse auctions.

Renewable energy fee

The payment of subsidies are financed by the renewable energy fee. The fee is collected from the final consumers of electricity in Estonia along with the eletricity bill and the grid service fee. According to the Electricity Market Act, the renewable energy fee is calculated by the transmission grid operator Elering and the amount of the fee for the following calendar year is published on Elering’s website every year on December 1. Read more about the renewable energy fee.

Other subsidies

According to need, have also been granted for the construction of a biomethane production unit, the construction of renewable energy storage equipment, the production of heat from renewable sources in the district heating network and the reconstruction of heat pipelines, the reconstruction of buildings and the installation of renewable electricity production equipment, the connection of renewable electricity production equipment to the electricity grid, the production and consumption of green hydrogen from renewable energy, the purchase of electric vehicles and the preparation of local government energy and climate plans. Read more on the website of the Enterprise and Innovation Foundation and the website of the Center for Environmental Investments.