Applying for financial aid for renewable energy-based technical installations

The Environment Agency (Administration de l’Environnement – AEV) offers subsidies for projects that aim to use energy more efficiently and promote renewable energy sources.

These subsidies, known as ‘Klimabonus’ subsidies, are financial aids for covering the investment and installation costs of various systems including:

• Solar thermal systems
• Solar photovoltaic systems
• Heat pumps, hybrid heat pumps, or hybrid systems including a heat pump
• Wood-fueled boilers and particulate filters
• The development of a heating network and/or connection to a heating network

These subsidies are applicable to both renovation projects and new constructions. They can also be requested independently of these projects.

Applicants should consult the communal administration in the area of the building to determine if a building permit is necessary.

Klimabonus aid is granted only once for each technical installation.

Who is concerned?

Any individual seeking to enhance their home’s energy efficiency, whether it’s a single-family house or a multi-unit dwelling, can apply for financial aid. Eligible applicants include:

• Natural persons (individuals)
• Legal entities established under private law
• Public legal entities, excluding the State

Applications can be made by:

• A legal representative of a group of natural or legal persons, provided you are a member of that group
• The owner(s) of the property, except in cases of ownership transfer where the new owner of the property and/or technical installation renounces the aid, allowing the previous owner who made the investments to benefit from it.

Klimabonus Aid: Eligibility for Installations and Residences

The Klimabonus aid is specifically for residential buildings in Luxembourg. It does not cover:

• Used (second-hand) systems
• The exchange, replacement, or repair of a system part that isn’t independently functional

Systems that received financial aid under the 2012 or 2017 schemes are not eligible.

Requirements:

Hydraulic Balancing: Hydraulic balancing is required for heating networks when installing:

• Heat pumps
• Solar thermal systems with supplementary heating in new single-family houses or multi-unit buildings

Solar Thermal Systems: These systems must:

• Have Solar Keymark-certified solar thermal collectors
• Include a calorimeter
• Have a minimum gross surface area of collectors:
  • ≥9 m² for flat-plane collectors
  • ≥7 m² for vacuum tube collectors
• Non-glass thermal collectors with polyethylene pipes and hybrid solar collectors (hot water and electricity) are ineligible

Solar Photovoltaic Systems: These systems must:

• Have a peak power capacity ≤30 kW
• Be installed on the building’s roof or facade or incorporated into the building envelope
• Hybrid solar collectors (hot water and electricity) are eligible as photovoltaic collectors

An electricity storage facility is eligible with a new photovoltaic installation if:

• It’s connected to a self-consumed or community-used solar photovoltaic installation
• The solar installation’s peak power is >4 kW (or >1.5 kW per unit in multi-unit buildings)
• The storage capacity is ≤1.5 kWh per kWpeak for residential buildings (max 12 kWh for single-family homes, 9 kWh per unit in multi-units) or ≤1 kWh per kWpeak for non-residential buildings

Heat Pumps: Eligible heat pumps and hybrid heat pumps include:

• Geothermal heat pumps (vertical/horizontal sensors) with a COP ≥4.3 at B0/W35 (EN 14511 standard)
• Hybrid geothermal heat pumps for existing residential buildings, either as an addition or a replacement, with a COP ≥4.3 at B0/W35
• Direct expansion geothermal heat pumps with a COP ≥4.3 at E4/W35
• Heat pumps combined with a latent heat accumulator and a solar thermal collector, COP ≥4.3 at B0/W35
• Air-to-water heat pumps, including vented ones, with a COP ≥3.1 at A2/W35
• Hybrid air-to-water heat pumps for existing residential buildings, either as an addition or a replacement, with a COP ≥3.1 at A2/W35

The heat pump must fulfill these criteria:

1. The heating system should be able to supply a maximum initial temperature of 35°C (35W). If not, the heat pump’s coefficient of performance must meet the required threshold at W35 with the chosen starting temperature.
2. The rated capacity of the heat pump is to be determined at 100% output under the aforementioned conditions.
3. The heat pump’s power supply must have an electricity meter.
4. For heat pumps with invoices issued from 1 January 2024 onwards, a heat meter is required.
5. Hydraulic balancing is mandatory when installing a heat pump.
6. For existing residential buildings, heat pumps and hybrid heat pumps must have a buffer tank of at least 30 l/kW thermal, except for those with an ‘inverter’ (variable frequency drive) with speed/power modulation.
7. Geothermal or hybrid air-to-water heat pumps must operate independently (monovalent mode) and cover at least 70% of the annual heat demand in heat pump mode.
8. For air-to-water heat pumps and hybrid variants, the exterior component’s sound power level (LW) based on EN 12102 must meet these standards:
   • ≤ 5 kW: 48 dB(A)
   • 5 kW and ≤ 12 kW: 51 dB(A)
   • 12 kW: 55 dB(A)

   Systems exceeding these limits may use soundproofing to reduce noise. The sound-reduction value must be specified in the equipment’s technical data.

If the standard LW levels are not met, the noise at the nearest building site’s boundary must not exceed 40 dB(A). A noise assessment using the ‘calculatrice des émissions sonores’ (noise emission calculator) provided by the Ministry is required prior to installation.

For indoor-only heat pumps, acoustic calculations must use the Ministry’s provided tool.

Wood-Fuelled Boilers Eligibility

To qualify, wood-fuelled boilers must:

1. Have a controlled combustion system.
2. Wood-pellet or wood-chip boilers should include an automatic feeder and ignition system.
3. Wood pellet stoves integrated into a central heating system must transfer at least 50% of useful heat.
4. For staged log combustion and combination wood log-pellet boilers, a buffer tank of at least 55 l/kW rated thermal capacity is required.
5. Emission and efficiency thresholds:
   • Particle emission ≤ 8 mg/m3
   • Nitrogen oxide (NO) emission ≤ 200 mg/m3
   • Boiler production yield ≥ 90%
   • Combustion yield of pellet stove ≥ 90%

Particle filters (electrostatic or other) can be used to ensure particle emission post-commissioning does not exceed 8 mg/m3.

Heating Networks and Connections

Renewable energy must constitute over 75% of the network’s energy, proven by a certificate from the operator. Heat transfer to the building must occur via a heat transfer station.

Invoices

Invoices for technical installations should be dated between 1 January 2022 and 31 December 2025.

Application Process for Financial Aid

Applications for financial aid must be submitted to the Single Point of Contact for Housing Assistance within four years from 31 December of the year in which the invoice was issued.

Eligibility for financial aid covers investments and services invoiced:

• Between 1 January 2022 and 31 December 2025, inclusive.
• For technical installations other than photovoltaic systems, up to 31 December 2029, inclusive, if the investments are part of the energy efficiency renovation of an existing building.

Submission Deadlines:

• For installations not part of an energy efficiency renovation, applications must be submitted by 31 December 2031 at the latest.
• For installations part of a new sustainable construction eligible under the 2017 aid scheme, the deadline is 31 December 2028.

For solar photovoltaic installations used in self-consumption mode or as part of an energy community, there’s an additional 25% financial aid bonus, provided:

• The order is placed between 1 January 2023 and 31 December 2023, inclusive.
• The invoice is issued by 31 December 2025 at the latest.

The financial aid bonus for replacing an existing fossil fuel boiler or an electrical heating system, along with enhancing the energy performance of the heating system by installing a heat pump, a hybrid heat pump, or a wood-fueled boiler, is increased from 30% to 50%. This applies to installations ordered between 1 November 2022 and 31 December 2023, with the condition that the invoice is issued no later than 31 December 2025.

Application Submission Process

Applications for financial aid should be submitted to the Single Point of Contact for Housing Assistance after the completion of the work.

Required Documentation:

1. For private individuals: the DEPA-2022 aid application form for natural persons.
2. For legal persons: the DEPA-2022 financial aid application form for legal persons.

These documents should be sent (preferably by registered mail) or submitted in person to the Single Point of Contact for Housing Assistance.

Supporting Documents:

• Detailed and receipted invoices related to the financial aid request. If the invoice refers to an itemized estimate, attach the estimate.
• Specific technical data sheets, varying by installation type (e.g., photovoltaic system, heat network, solar thermal systems, heat pumps, wood-fueled boilers).
• If applicable, the energy consultation related to the technical installation(s).
• If applicable, dated order forms for photovoltaic installations, heat pumps, or wood-fueled boilers.
• For commonhold properties or multi-unit residences, include appendix form COLL-2022, a power of attorney from each owner, and a list of flats with energy reference area per flat, excluding common areas.

The Single Point of Contact for Housing Assistance may request additional documents for file processing. The beneficiary’s file may be reviewed at any time post-aid granting.

Note: Technical installations may also qualify for financial aid for an energy consultation and a report by an approved energy consultant. If the improvement applies only to a renewable energy-based technical installation, the subsidy will be reduced by 70%.

Subsidy Details

Solar Thermal Systems:

• Additional flat-rate subsidy of EUR 1,000 for systems installed with a wood-fueled boiler or heat pump.

Solar Photovoltaic Systems:

• Subsidies of 20% to 62.5% of actual costs, with varying maximum amounts depending on mode of operation and installation period.

Heat Pumps:

• Subsidies of 50% of actual costs with different maximum amounts for geothermal and air-to-water heat pumps, including bonuses for replacing existing systems.

Wood-Fueled Boilers:

• Subsidies of 30% to 50% of actual costs with maximum amounts for various types of wood boilers, including bonuses for installing buffer tanks and replacing existing systems.

Urban Heating Network:

• Subsidies of 50% of actual costs for connecting to or installing urban heating networks, with maximum amounts depending on the type of property.

Additional Aid and Bonuses:

• Various bonuses and aids for heat pumps and wood-fueled boilers, including additional aid for removing, neutralizing, and recycling oil tanks.

Other Aid:

• Communal aid can be estimated using the Klima-Agence simulator.
• The nova naturstroum promotional bonus supports renewable energy projects.
• Gas and electricity suppliers in Luxembourg offer aid programs for energy efficiency measures, with supplier lists available on the ILR website.

Payment and Repayment of Aid:

• Aid is typically transferred to your bank account.
• If acting as a legal representative of a group, aid is transferred to your account, and you must immediately distribute it to the respective members.
• Repayment of aid may be required if false or incomplete statements are made or if required documents are not provided.

UPDATE

25% financial aid allowance for photovoltaic installations operating in self-consumption mode or within an energy community is extended for a transitional period of 3 months (orders placed no later than September 30, 2024), Currently, the aid level is 62.5% of the actual costs, with a ceiling of EUR 1,562.5 per peak kW.

From October 1, 2024, the current regime regarding energy sanitation measures and heat pumps and wood boilers will be maintained, while at the level of photovoltaic modules, financial assistance will be reduced to 50% of the actual costs of installations ordered from October 1, 2024, with a ceiling of EUR 1,250 per kW

Financial aid programmes for
sustainable housing and mobility

Photovoltaics

KLIMABONUS 522

The “KLIMABONUS 522” program in Luxembourg offers a €500 per kWp subsidy for solar PV systems up to 50 kWp. The program is available to individuals and businesses.

Learn more: https://voltmax.lu/klimabonus-522/

Air-to-water heat pump

KLIMABONUS 511

The “KLIMABONUS 511” program is a Luxembourgish government initiative that provides financial incentives for the installation of heat pumps. The program offers a subsidy of €511 per kilowatt (kW) of installed capacity, up to a maximum of 10 kW. The subsidy is available to both individuals and businesses.

Learn more: https://voltmax.lu/klimabonus-511/

Intelligent charging station

KLIMABONUS 151

The “KLIMABONUS 151” program is a Luxembourgish government initiative that provides financial incentives for the installation of electric vehicle chargers. The program offers a subsidy of €151 per kilowatt (kW) of installed capacity, up to a maximum of 22 kW. The subsidy is available to both individuals and businesses.

Learn more: https://voltmax.lu/klimabonus-151/