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• Investigation of two residential buildings in a sub-Arctic region. • One building subject of energy-retrofit, one maintained the original envelope. • No significant improvement to the heat supply after energy efficiency measure. • The thermal indoor climate showed signs of overheating. • The heating system should be reviewed when an energy-retrofit is done. There is a need to improve the understanding and the knowledge of energy efficiency measures for residential buildings in sub-Arctic climate regions. This paper presents an investigation of two identical multi-family residential buildings in the sub-Arctic climate of northern Sweden, before and after renovation. During the renovation, additional insulation of the external walls and new windows were installed in one building, while the other building retained its original envelope. The energy usage data for the past four heating seasons were collected, including data from before and after the renovation. Detailed thermal indoor climate data were gathered for specific months. The data from the two separate buildings showed that the renovation did not result in a significant improvement in energy usage. Prior to the renovation, the energy usage data showed a difference of 2–3% in the heat supply between the two buildings, and this difference persisted after the renovation. On the other hand, the indoor air temperature was raised. The renovated building had an indoor air temperature which was 2 °C higher than the not yet renovated building. IDA ICE models were constructed and validated with the measured data to investigate how a lower indoor air temperature would affect the energy usage and indoor thermal climate. The models showed that with a reduction in the indoor air temperature by 2 °C after the renovation, the thermal climate would maintain an acceptable level according to PMV/PPD standards, and would result in a 13–14% reduction of the heat supply during the cold months. With an annual reduction of 15%, the heat supply could be reduced by 270 MWh per year for the whole area where the buildings are located. This clearly demonstrates the importance of adjusting the heating system after an energy efficiency measure has been performed. [ABSTRACT FROM AUTHOR]