Finland has approximately 150,000 oil-heated private homes. In 2020, the Finnish government launched subsidies for private homeowner energy renovations. In this study, we examine the impact of two new energy renovation subsidies, the ELY grant and the ARA grant, from an energy efficiency point of view. Data from these subsidies reveal that a typical energy renovation case is a building from the 1970s where the oil boiler is replaced with an air-to-water heat pump. With additional data from the Finnish Energy certificate registry, a reference 1970s house is constructed and modelled in the building simulation programme, IDA ICE 4.8. Combinations of several renovation measures are simulated: air-to-water heat pump, ground-source heat pump, ventilation heat recovery and improved insulation. We found that resorting mainly to air-to-water heat pumps is not the most energy-effective solution. Ground-source heat pumps deliver a more significant reduction in delivered energy, especially with additional measures on insulation and heat recovery. Ground-source heat pumps also demand slightly less power than air-to-water heat pumps. Onsite solar PV generation helps supplement part of the power needed for heat pump solutions. Subsidy policies should emphasize deep renovation, ventilation heat recovery and onsite electricity generation.