Subsidy IV (Fonds pour la protection de l´environnement)

Updated: 19.02.2019

Author: Stijn Anciaux

The Law of 31 May 1999 has introduced the creation of a fund bound to support Luxembourg municipalities in their investments for environmental protection. The fund is managed by a committee composed of delegates of the Ministry of Environment, the Ministry of Budget and the Ministry of the Interior (Art.6, Loi du 31 mai 1999).

Eligible technologies

Only biogas, biomass and solar thermal technologies are eligible (Circulaire n°3178).

Biogas

Eligible (Circulaire n°3178).

Solar thermal energy

Following plants are eligible:

  • Solar thermal collectors for purposes of sanitary hot water production
  • Solar thermal collectors for purposes of heat production

Biomass

Following plants are eligible (Circulaire n°3178):

  • Wood pellet installations
  • Woodchips installations
  • CHP installations

Amount

The amount of subsidy depends on the renewable heating technology and is as follows (Circulaire n°3178): 

  • 50% of the whole investments costs, including equipment and installation costs for solar thermal installations 
  • 40% of the whole investments costs, including equipment and installation costs for heat pumps with a maximum capacity of 150 kW 
  • 40% of the whole investments costs, including equipment and installation costs for wood pellet and woodchips installations 
  • 30% of the whole investments costs, including equipment and installation costs for biomass/biogas CHP plants

Addressees

Municipal administrations, confederation of municipalities and public institutions under the supervision of municipalities can benefit from the fund (Circulaire n°3178).

Procedure

Process flow

The application shall be sent prior to the beginning of the project. The investment grant is submitted to the acceptation of the Ministry of Environment (Art. 5, Loi du 31 mai 1999).

Competent authority

The competent authority is the Ministry of Environment (Art. 1, Loi du 31 mai 1999).

Distribution of costs

State

The subsidy scheme is funded by the state. The subsidies are partly funded by the available budget of the Ministry of Environment and partly from loans took out by the State (Art. 3, Loi du 31 mai 1999).