The main financial source for the renovation of a residential building is the redundant payment for the heat energy savings acquired for heating in result of the energy efficiency improvement measures. In the course of the study, a calculation methodology was created, as well as a software tool enabling the determination of financial conditions for each building, which depends on the current heat consumption and the technical deterioration level of the building. The main financial condition for the renovation of the building is the decrease of the current heating heat consumption by 50%. For this condition, the permissible construction costs are calculated for the particular building, depending on the price of the supplied heat energy, the annual interest rate of the available external financing and the loan term. A renovation measures program is offered for the permissible construction costs, to fulfill the condition of 50% heat energy savings. To justify and verify the conclusions for the developed methodology and calculations, the results of renovation and energy efficiency improvement projects for standard buildings implemented in the period from 2001 to 2016 were summarized and analyzed in the study. It was concluded that project management quality is of crucial significance in building renovation and energy efficiency improvement projects. 50% heat energy savings from heating have been achieved in those cases where a high-quality construction plan has been developed and the construction operations have been carried out in line with the plan. Given Latvia’s circumstances, the construction costs can be reduced if the renovation of standard buildings is managed simultaneously in building complexes and residential areas. It is necessary to implement innovative construction methods to increase productivity specifically in the renovation of standard buildings.