Subsidy II (Régime d'aide à la protection de l'environnement et à l'utilisation rationnelle des ressources naturelles)

Updated: 19.02.2019

Author: Stijn Anciaux

Industrial companies investing in renewable energy generation are eligible for investment grants, with the exception of aerothermal energy.

Eligible technologies

All renewable energy technologies used for the production of heat, except aerothermal technologies, are eligible.

Biogas

Eligible (Art. 9 and 2.31 Loi du 15 décembre 2017).

Geothermal energy

Eligible (Art. 9 and 2.31 Loi du 15 décembre 2017).

Biomass

Eligible (Art. 9 and 2.31 Loi du 15 décembre 2017).

Solar thermal energy

Eligible (Art. 9 and 2.31 Loi du 15 décembre 2017).

Hydrothermal energy

Eligible (Art. 9 and 2.31 Loi du 15 décembre 2017).

Amount

Grants may cover up to 45% of the additional costs arising from the use of renewable energy as compared to non-renewable sources.  Regarding certain small installations for which it is impossible to imagine a less environmentally friendly investment because of the lack of limited size facilities, grants may cover up to 30% of the total investment costs incurred to reach a higher level of environmental protection. The grant may increase by 20 percentage points for small enterprises and by 10 percentage points for medium-sized enterprises. (Art. 9 Loi du 15 décembre 2017).

Addressees

This scheme applies to all companies exercising their activities of an establishment or a branch in the territory of the Grand Duchy of Luxembourg. (Art. 3 Loi du 15 décembre 2017).

The obligated parties are the Ministries in charge of economy and finance (Art. 1 Loi du 15 décembre 2017).

Procedure

Process flow

Applications shall be submitted to the Ministry of Economy before the investment is made (Art. 18 Loi du 15 décembre 2017).). Art. 18 contains a list of the required documents. Subsidies are awarded by joint decision of the Ministries of Economy and Finance.

Competent authority

Ministry of Economy (Art. 18 Loi du 15 décembre 2017).

Distribution of costs

State

The subsidy scheme is funded by the state. The funds are provided from the budget of the Ministries of Economy and Finance (Art. 1 Loi du 15 décembre 2017).

Luxembourg

Further information

  • Ministère de l’Economie, Département des petites et moyennes enterprises (PME) et entrepreneuriat - Ministry of Economics, Department of Small and Medium Enterprises and Entrepreneurship
  • +352 247 84 71 5
  • website
  • info.pme(at)eco.etat.lu

Basic information on legal sources