Subsidy I (PRIMe House)

Updated: 19.02.2019

Author: Stijn Anciaux

Investments in renewable electricity generation are subsidised by the state, which awards investment grants up to a certain maximum. New support conditions were introduced from 1 January 2017 onwards for investments made between 1 January 2017 and 31 December 2024. According to the new regulation, aerothermal and geothermal heat pumps as well as renewable energy plants generating heat from solar thermal energy or wood-burning boilers are eligible for subsidy.

Eligible technologies

All technologies are eligible except hydrothermal and biogas plants.

Aerothermal energy

Aerothermal heat pumps used exclusively in passive houses are eligible under certain technical conditions, including (Art. 5, Annex II RGD du 23 décembre 2016):

  • The heat pump shall have a coefficient of performance of at least 3.1 on the basis A2/W35 (that is to say with an air temperature of 2°C and a water temperature of 35°C)

Biomass

  • Wood-burning boilers are eligible under certain technical conditions, including (Art. 6, Annex II RGD du 23 décembre 2016):
    • the output of the boiler and of the pellet burning stove shall amount to at least 90%.
  • Micro-CHP plants are no longer supported 

Geothermal energy

Geothermal heat pumps used for heating purposes are eligible under certain technical conditions, including (Art. 5, Annex II RGD du 23 décembre 2016):

  • Brine/water heat pumps shall have a coefficient of performance of at least 4.3 on the basis B0/W35 (that is to say with a brine temperature of 0°C and a water temperature of 35°C)
  • Direct exchange geothermal heat pumps shall have a coefficient of performance of at least 4.3 on the basis E4/W35

Solar thermal energy

Solar thermal plants are eligible under certain technical conditions, including among others (Art. 4, Annex II RGD du 23 décembre 2016):

  • The solar thermal plant is equipped with a calorimeter
  • The solar thermal collectors shall be certified by the European certification system Solar Keymark
  • The surface area of thermal solar collectors in an installation with additional heating must be greater than or equal to 9 m2 in the case of flat collectors and 7 m2 in the case of vacuum collectors.

Amount

For aerothermal heat pumps: The subsidy amounts to 25% of the eligible costs, subject to a maximum of €2,500 in a single-family passive house. The following expenses are eligible: the heat pump, additional needed devices, installation costs (Art. 5 and Annex I, RGD du 23 décembre 2016). For geothermal heat pumps: The subsidy amounts to 50% of the eligible costs, subject to a maximum of €8,000 in a single-family house. For multi-family houses, the subsidy amounts to 50% of the eligible costs, subject to a maximum of €6,000 without exceeding a maximum support of €30,000 per house. The following expenses are eligible: the heat pump, additional needed devices, geothermal drilling and installation costs (Art. 5 and Annex I, RGD du 23 décembre 2016). For wood-burning boilers (Art. 6 and Annex I, RGD du 23 décembre 2016):

  • The subsidy for straw, wood pellet and woodchips boilers amounts to 40% of the eligible costs, subject to a maximum of €5,000 in a single-family house. For multi-family houses, the subsidy amounts to 40% of the eligible costs, subject to a maximum of €4,000 without exceeding a maximum support of €24,000 per house. 
  • The subsidy for wood pellet stoves amounts to 30% of the eligible costs, subject to a maximum of €2,500 only for single-family houses. 
  • The subsidy for log boilers amounts to 25% of the eligible costs, subject to a maximum of €2,500 in a single-family house. 
  • The following expenses are eligible: wood-burning boilers, wood pellet stoves, additional needed devices as well as the installation costs (Art. 6 and Annex I, RGD du 23 décembre 2016).
  • In case of replacement of an existing boiler combined with an energy performance improvement of the heating system or replacement of an existing electric heater, the financial aid granted in accordance with paragraphs 1 and 3 may be increased by a bonus of 30 percent.
For solar thermal installations: The subsidy amounts to 50% of the eligible costs, subject to a maximum of €2,500 for projects involving the sole production of sanitary hot water. In case the production of hot water is combined with heating purposes, the subsidy is subject to a maximum of €4,000. In multi-family houses, the subsidies can be multiplied by the number of flats, without exceeding a maximum support of 15,000 per house and €20,000 if the production of hot water is combined with heating purposes. The following expenses are eligible: the whole components of the solar thermal installation, the drainback system, the calorimeter, additional needed devices, installation costs (Art. 4, RGD du 23 décembre 2016). Moreover, an additional subsidy of €1,000 can be granted in case a wood-burning boiler or heat pump boiler is installed together with a solar thermal installation for the production of sanitary hot water (Art. 4, RGD du 23 décembre 2016).

Addressees

Eligible persons are natural persons, legal entities governed by private law and public corporations (other than the State) (Art. 1, RGD du 23 décembre 2016).

Procedure

Process flow

Applications for subsidies shall be submitted by means of a specific form to the environment administration of the Ministry of Environment (Art. 9 RGD du 23 décembre 2016). 

According to the Grand Ducal Decree of 23 December 2016, subsidies may be applied for investments made between 1 January 2017 and 31 December 2024 (Art. 10 RGD du 23 décembre 2016). 

The respective forms can be found on the website of the Ministry of Environment under: https://environnement.public.lu/fr/emweltprozeduren/personnes-privees/Energie/Subventions_prime_house_selon_la_reglementation_de_2017_Paquet_banque_climatique_et_logement_durable.html

Competent authority

The competent authority is the Ministry of Environment.

Distribution of costs

State

The subsidies are funded by the Ministry of Environment within the bounds of its available budget (Art. 1, RGD du 23 décembre 2016).

Luxembourg
Electricity
Heating & Cooling
Transport

Further information

Basic information on legal sources