To promote investment in projects to produce electricity from renewable energy sources, the State can grant a financial incentive both to companies and private individuals, on condition that the energy produced is injected into the distribution grid of one of the national operators. A full list of operators is available on the website of the Luxembourg Regulatory Institute (Institut luxembourgeois de régulation – ILR). The incentive comes in the form of a sum paid for each kWh of electricity produced, added to the market price paid by the network operator.

Who is concerned

Any of the following are eligible for the financial incentive:

• private individuals;
• companies;
• communes and associations of communes;
• non-profit associations (association sans but lucratif, asbl).

The scheme is also open to the owners of electricity generation equipment producing electricity from the following sources (and injecting the output into the grid of one of the national operators):

• photovoltaic energy;
• wind power;
• hydraulic energy;
• biogas-based energy;
• biomass-based energy.

Deadlines

The application for the financial incentive must be sent to the Environment Agency (Administration de l'environnement) no later than 24 months after the date of issue of the grid operator's report.

How to proceed

Generation of photovoltaic energy

Owners of photovoltaic systems which became operational before 31 December 2004, whose power output is between 1kW and 50kW, may apply for the incentive using the downloadable application form, accompanied by:

• the report issued by the grid operator showing the amounts of electricity injected into the grid over the course of the period in question;
• a copy of the contract between the producer and the grid operator, setting out how the installation is connected to the grid (for first-time applications, or if there has been a change in ownership or in the technical installation).

The bonus may be granted for a period of 20 years.

Generation of wind energy, hydraulic energy, biogas-based energy and biomass-based energy

Installations which became operational before 31 December 2004

Owners of systems which became operational before 31 December 2004, whose power output is between 1kW and 3MW, may apply for the incentive using the downloadable application form, accompanied by:

• the report issued by the grid operator showing the amounts of electricity injected into the grid over the course of the period in question;
• a copy of the contract between the producer and the grid operator, setting out how the installation is connected to the grid (for first-time applications, or if there has been a change in ownership or in the technical installation).

The bonus may be granted for a period of 10 years.

Installations which became operational between 1 January 2005 and 31 December 2007

Owners of installations which became operational between 1 January 2005 and 31 December 2007, whose power output is less than 5MW (for wind turbines) or 3MW (for other types of renewable energy generators), may apply for the incentive using the downloadable application form, accompanied by:

• the report issued by the grid operator showing the amounts of electricity injected into the grid over the course of the period in question;
• a copy of the contract between the producer and the grid manager, setting out how the installation is connected to the grid (for first-time applications or if there has been a change in ownership or in the technical installation).

The bonus may be granted for a period of 10 years.

Forms / Online services

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