The government of Luxembourg has introduced a new grant system supporting solar installations on residential buildings.
The mechanism, brought into force on January 4, acts as a pre-financing model that deducts the subsidy from the solar installer’s invoice, meaning customers will no longer wait for the government’s financial aid to be reimbursed to them.
To be eligible for the new scheme, customers must use an installer that has been registered for the pre-financing procedure by Luxembourg’s Ministry of Economy, as the installer will be responsible for submitting the application for financial assistance. Installers can register for accreditation under the scheme on the government’s website.
The new scheme is open to owners of residential buildings, including homeowners, legal entities or co-ownerships represented by a trustee or agent. To be eligible for the subsidy, solar installations must have a minimum power output of 2 kW and operate for self-consumption. They can be installed on the roof or facade of a building, be integrated into a building, or be installed on an annex such as a carport or garden shed. Home battery storage systems installed in conjunction with a solar system are also eligible.
The subsidy value will be dependent on the power capacity of the installation. A maximum €10,000 ($11,679) is available for a 15 kW solar array, while the maximum subsidy for co-located storage is €2,250 for a 9 kWh system.
A transition period is in place until March 4, allowing customers installing solar on residential buildings to choose between benefiting from the pre-financing mechanism or Luxembourg’s standard subsidy scheme. The previous scheme also remains available for solar installations mounted on buildings other than residential premises and in cases where the installer is not registered to the pre-financing scheme.
An update from the Luxembourg government indicates that there are plans to roll out the new scheme to other components of its Klimabonus Wunnen financial aid program, which also covers energy renovations and the replacement of a fossil-fuel boiler with a heat pump or hybrid heat pump.
Luxembourg’s Minister of Economy, SMEs, Energy and Tourism, Lex Delles, commented that the pre-financing model will remove a major obstacle to the adoption of photovoltaics. “Households no longer have to pay the subsidy upfront, they benefit from it immediately,” Delles said. “This is a concrete, simple and effective measure that makes the energy transition more accessible to everyone.”
Last May, Luxembourg committed to 51 measures aimed at supporting the deployment of renewable energy across the country. In November, ministers agreed to allow the installation of solar systems alongside motorways and bypasses of solar systems.
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