klámgreiðslum

Klámgreiðslum is an Icelandic government subsidy programme that provides financial assistance to households and small businesses for energy efficiency and low‑carbon technology installations. The name derives from the Icelandic terms klíma (climate) and greiðsla (payment), and the scheme is officially documented as part of the National Climate Program.

The programme was launched in 2015 as a response to Iceland’s commitments under the Paris Agreement and its own target to reduce greenhouse‑gas emissions by 55 % by 2030. It operates under the Ministry of Environment and Natural Resources, with the Icelandic Agency of Energy and Mineral Resources administering applications and approvals. The funding budget for 2023 was allocated 270 million ISK, with projections that 12 % of the national climate budget will be earmarked for Klámgreiðslum over the next decade.

Eligibility criteria focus on socio‑economic equity. Applicants must have an annual household income below 2.5 million ISK and live in a dwelling constructed before 2000. Approved projects include wall and roof insulation, installation of renewable heat sources (e.g., solar thermal panels, heat pumps), and upgrades to heat‑efficient lighting systems. The subsidy covers up to 70 % of eligible costs, with caps of 120 000 ISK per household per year.

Since its inception, the programme has funded roughly 6 500 projects and is estimated to cut national CO₂ emissions by 3 % annually. Feedback from residents indicates high satisfaction with the ease of application and the tangible savings on energy bills.

Critics argue that the subsidy amounts are still too modest to induce widespread adoption of high‑performance homes. Others point to bureaucratic delays and a lack of clear guidance for more complex retrofit projects, suggesting a need for program refinement and increased funding to meet the stricter 2030 targets.