Luxembourg launches new incentive scheme for residential and commercial PV


Luxembourg’s Department of sustainable development and infrastructure launched a new initiative to promote solar energy on Wednesday. The incentive scheme, which includes a FIT mechanism and rebates covering up to 20% of the costs for buying and installing a PV system, will be open to PV installations with a capacity of up to 200 kW.

As a matter of principle, a distinction will be made between PV systems not exceeding 30 kilowatts and installations ranging in size from 30 kW to 200 kW.

The first category will be entitled to receive a 15-year FIT of €0.169/kWh in 2017, of €0.145/kWh in 2018 and €0.121€/kWh in 2018. Furthemore, this PV system typology will be the only one entitled to receive the 20% rebate.

As for the second category, it will be divided into two further categories. The first will be represented by PV installations with a capacity between 30 kW and 100 kW and will have access to a FIT of €0,1504/kWh in 2017, €0,1408 /kWh in 2018 and €0,1312/kWh in 2019. PV systems ranging in size from 100 kW to 250 kW, on the other hand, will be granted a FIT of 0,1438 €/kWh in 2017, of 0,1346 €/kWh in 2018, and 0,1255 €/kWh in 2019.

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“The potential for photovoltaic systems in Luxembourg is considerable and the profitability of photovoltaic energy has significantly increased in view of the lower installation costs,” said Luxembourg's secretary of sustainable development and infrastructure Francine Closener, on Wednesday, adding that photovoltaics will allow households and communities to generate additional revenues and improve renewables, “Photovoltaics is a viable climate protection measure and an intelligent investment that offers a guaranteed and attractive income for a long time,” added Camille Gira, the secretary for the environment.

In mid-May, Luxembourg’s government presented a new energy strategy which aims to increase the country’s power generation capacity with solar and renewables by around 4.8 GW by 2050. This new capacity, the government said, is expected to come from solar, which is forecast to grow from 117.8 MW currently to 2.5 GW, and a combination of wind, hydropower and biomass, for which the government has set a target of 2.33 GW from 114 MW currently.

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