How is financial aid in support of the energy transition changing?

To support the energy transition and meet society’s decarbonisation objectives in the fight against climate change, we must reduce our energy consumption and prioritise “greener” usage. To encourage citizens to opt for more sustainable ‘soft’ mobility and electromobility as well as improving the energy performance of their homes, for several years now, the Luxembourg State has been rolling out financial aid schemes known as ‘Klimabonus’.

Last June, the government announced a reform of two Klimabonus schemes: Klimabonus Wunnen, concerning energy renovation, and Klimabonus Mobilitéit, concerning electromobility.

Klimabonus Wunnen: how is financial aid for energy renovation changing?

When presenting the reform, Serge Wilmes, Minister of the Environment, Climate and Biodiversity, first recalled the importance of the aid scheme, it constituting “a significant step forward towards a more sustainable future”. The desire is therefore to continue in the same direction, with the main change concerning financial aid for the installation of photovoltaic panels.

Sanitation aid and the “replacement bonus” will continue

Let’s start with what isn’t changing.

For sanitation measures (including the installation of controlled mechanical ventilation), the financial aid “basic regime + 25% bonus” will continue for requests to obtain an agreement in principle introduced no later than December 31, 2025.

The “replacement bonus” will continue to be increased to 50% when an existing fossil fuel boiler or electric heating is replaced with a heat pump, hybrid heat pump or wood boiler.

The financial aid scheme for installing photovoltaic panels is changing

If you’re thinking of installing photovoltaic panels in the coming months, there are a few developments you should be aware of.

First of all, you should know that the 25% supplement on financial aid allocated for photovoltaic solar installations in self-consumption mode or as part of an energy community is being renewed for a transitional period of three months. With this scheme, you benefit from aid equivalent to 62.5% of the actual costs, with a ceiling of 1,562.5 euros per kW peak. To benefit from this, you’ll need to place an order by September 30, 2024 at the latest.

Beyond this, financial assistance for photovoltaic modules will be reduced to 50% of the actual costs for installations ordered from October 1, 2024, with a ceiling of 1,250 euros per kW peak.

Klimabonus Mobilitéit: update to the bonus for purchasing an electric vehicle

The government also announced changes to support measures promoting electric mobility. The current rules in force, and in particular the bonus of 8,000 euros for the purchase of a 100% electric vehicle, will be accessible until the end of September. If you’d like to take advantage of this bonus, you’ll need to act fast.

For any electric vehicle purchased from October 1, the terms of financial aid will change.

The bonus for purchasing an electric vehicle goes from 8,000 to 6,000 euros

Until now, most new electric vehicles available on the market (those with consumption not exceeding 160 Wh/km) benefited from a bonus of 8,000 euros upon purchase. In future, the amount of aid will be 6,000 euros.

On the other hand, from October 1, 2024, the minimum holding period on which the granting of the bonus depends is increased to 36 months (instead of the current 12 months). Extending the minimum holding period will help stimulate the emergence of a second-hand market for 100% electric vehicles.

A bonus of 1,500 euros for the purchase of a used electric vehicle

Other changes include the introduction of new financial aid scheme of 1,500 euros for used cars more than three years old, on the condition that the recipient of the aid keeps the car for at least two additional years and does not form part of the same household as the seller of the vehicle.