Adopting a more sustainable way of life has benefits for both the environment and your own well-being. The Grand Duchy offers a range of grants and subsidies to encourage environmentally friendly choices, whether it's for installing solar panels, improving the insulation of your home or buying bicycles or electric vehicles. This practical guide will help you to become familiar with the main types of support currently available, the steps you need to take to benefit from them, the key points to consider and the importance of insuring your eco-friendly equipment.
a. “Klimabonus” state grants
The “Klimabonus” is the Luxembourg State's subsidy programme. It provides support to finance individual steps against climate change and offers subsidies for various eco projects. Whether it's by making our homes more energy efficient, choosing zero-emission mobility solutions or managing our environment more responsibly. This offer provides a solution for every kind of project:
Mobility
- Electric vehicles: A bonus of up to €6,000 is available for the purchase of a brand new 100% electric or plug-in hybrid vehicle with emissions of 50g/km or less. Another allowance of up to €1,500 is also available for used electric cars less than 3 years old. This premium is available to any owner of a vehicle registered in Luxembourg, whether they are a resident or non-resident. The exact conditions and amounts vary in accordance with the type of vehicle and the date of purchase.
- EV charging points: Also available is a subsidy for the installation of private charging points for electric vehicles, up to a maximum of €1,200, at a rate of 50% of the cost (excluding VAT) of acquisition and installation. The parking space where the charging point is installed must be located in Luxembourg, inside or outside a building and not be open to the public.
- Bikes and pedelec25: Since the 1st of October 2024, financial assistance covering 50% of the cost excluding VAT, up to a maximum of €600, has been available only to residents who are members of a household receiving the cost-of-living benefit or the energy allowance when they buy a brand new bicycle or pedal-assist cycle.
- Cargo bikes: Also from the 1st of October 2024, a new financial support of 50% of the cost excluding VAT of the bike up to a maximum of €1,000, has been introduced for cycles and pedal-assist cycles designed to carry heavier loads than on a conventional bike.
Housing :
- Energy efficiency renovation: Financial support to improve the energy efficiency of buildings is likewise available, in particular for thermal insulation of buildings, window replacement and the installation of efficient ventilation systems.
- Sustainable construction: Subsidies encourage the construction of homes that meet high standards in terms of energy efficiency and the use of sustainable materials such as those of the LENOZ certification for housing.
Useful information: Luxembourg also offers various grants to finance improvements to buildings and flood protection measures. Find out more info in our guide about flooding.
Renewable energy:
- Solar panels: A subsidy of 50% of the actual costs, capped at €1,250 per kWp, is granted for installations that produce green energy for self-consumption or as part of an energy community. For more details see the Klima-Agence website.
- Heat pumps: Assistance of 50% of actual costs is available for the installation of heat pumps, whether ground-source or air-to-water, with maximum amounts varying according to the capacity of the appliance.
Ecosystem services:
- Sustainable forest management: Grants are also awarded to forest owners for steps aimed at preserving biodiversity and ensuring sustainable forest management.
b. Subsidies awarded by municipalities
Some local authorities also offer additional grants specifically for your green initiatives, such as installing charging points or improving the energy efficiency of buildings. We recommend that you consult your local programmes to find out what financial aid is available in your region.
2. The steps to follow to make the most of subsidies
- Correctly identify the subsidies available: Check official websites regularly to find out about the subsidies relating to your project. Use the Klima-Agence subsidy simulator to find out which grants you are eligible for, depending on your project and where you live.
- Check the conditions for eligibility: Make sure you meet the specific criteria for each type of financial aid, such as the types of equipment eligible, the dates of purchase or installation and the energy performance requirements.
- Compile the necessary documents: Prepare the invoices, proofs of payment, certificates of conformity and other documents required for the grant application.
- Submit your application: Follow the procedures set out by the authorities, either online via MyGuichet.lu or by post and adhere to the deadlines set.
- Wait for approval and payment: Once submitted, your application will be reviewed and, if approved, the grant will be paid to you in line with the terms and conditions.
3. Key points to consider
- Periods of validity: Some grants have application deadlines. For example, financial aid for cargo bikes will only apply to those purchased between the 1st of October 2024 and 30 June 2026.
- Ownership period: Some grants require you to keep the equipment or vehicle for a minimum period, e.g. 12 months for electric vehicles.
- Financial aid accumulation: Check whether subsidies can be combined with each other or with other local incentives.
4. Why should you insure your eco installations?
Equipment such as solar panels, heat pumps and charging stations are significant investments. That’s why it’s crucial to protect them and take out specific insurance.
Thanks to the LALUX Green Energy Pack, which you can take out with your easyPROTECT Home insurance, you benefit from tailored protection that covers:
- The cost of repairing or replacing broken or damaged equipment used to produce energy.
- The loss of revenue linked to green energy production in the event of a malfunction.
Make the most out of your green energy appliances!