Subsidy III (Régime d'aide en faveur des classes moyennes)
Updated: 19.02.2019
Author: Stijn Anciaux
In order to support companies regarding environmental protection and the rational use of natural resources, the state of Luxembourg grants subsidies for artisanal and commercial companies investing in renewable energies for the production of heat or for the combined production of heat and power (CHP). These enterprises depend on the aid scheme of the Department of Middle Classes of the Ministry of Economy. The subsidies can be allocated in form of capital grants or of interest-rate subsidies (Art. 8, Loi du 30 juin 2004).
Eligible technologies
There is no restriction regarding the eligible renewable energy technologies. However, investments in renewable energies shall be strictly necessary in order to comply with environmental requirements or adapt production methods with the aim of protecting the environment (condition regarding fixed assets, Art. 7, RGD du 24 novembre 2005)
| Aerothermal energy | Eligible |
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| Biogas | Eligible |
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| Hydrothermal energy | Eligible |
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| Biomass | Eligible |
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| Geothermal energy | Eligible |
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| Solar thermal energy | Eligible |
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Amount
Grants may cover up to 40% of the eligible investment costs (Art. 4, Loi du 30 juin 2004). The grant may increase by 10 percentage points for small and medium-sized enterprises (Art. 4, Loi du 30 juin 2004). Moreover, the grant may increase by 10 percentage points if the installed renewable energy plant allows the self-sufficient supply to a community of beneficiaries (Art. 4, Loi du 30 juin 2004).
According to this law, medium-sized companies shall employ less than 250 persons and have an annual turnover not exceeding € 40 million. Small companies shall employ less than 50 persons and have a turnover of maximum €7 million annually (Art. 1, Loi du 30 juin 2004).
Addressees
This scheme applies to natural and legal persons running a company (Art. 1, Loi du 30 juin 2004).
The obligated parties are the Ministry of Small Enterprises and the Ministry of Budget (Art. 14, Loi du 30 juin 2004).
Procedure
Process flow | Applications shall be submitted to the competent authority within two years after the eligible investment was made (Art. 11, Loi du 30 juin 2004). The application is then examined by a commission composed of delegates of the competent authorities. Subsidies are awarded by joint decision of the Ministries of Small Enterprises and Budget upon notice of the commission (Art. 13, Loi du 30 juin 2004) |
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Competent authority | Ministers responsible for Small Enterprises and for the budget (Art. 14, Loi du 30 juin 2004) are the competent authorities. |
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Distribution of costs
| State | The subsidy scheme is funded by the state. The subsidies are funded by the Ministries responsible for Small Enterprises and for the Budget within the bounds of their available budget (Art. 13, Loi du 30 juin 2004). |
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Luxembourg
