Policy status:Superseded
Date Effective:2008
Date Ended:2013 (Jan 1st)
Policy Type:Economic Instruments>Fiscal/financial incentives>Grants and subsidies
Policy Target:Buildings>Building Type>Residential, Buildings>Existing buildings, Buildings>New buildings, Residential Appliances>Space heating, Energy Utilities>CHP
Agency:Ministry of the Environment
Legal References:Règlement Grand-Ducal du 21 décembre 2007 au Mémorial A-No 247

Since 1 January 2008, the Ministry of Environment established a new financial incentive programme to encourage investments in high efficiency housing, energy-efficient refurbishment of existing housing, the installation of renewable energy sources and energy-efficient equipment, as well as energy performance evaluation and advice services (required for undertaking refurbishment).

  • For new housing up to 200m2 for individual houses and up to 120m2 for multi-family buildings, grants are provided for the construction of low-energy consumption homes (between EUR 21 and EUR 45/m2) and passive houses (between EUR 57 and EUR160/m2). Construction must begin in 2007 and request for funding submitted before 31 December 2008.
  • For existing housing over 10 years old, grants are provided for the replacement of various components, such as thermal insulation of walls, floors and roofs (EUR 8-15/m2) and high efficiency windows (EUR 12-30/m2). A complete refurbishment allows for 20% increased subsidy, covering up to 75% of the investment up to a maximum amount depending on the type and size of housing. Installation of improved ventilation systems are also subsidised up to 50%.


Various renewable energy sources are also subsidised:

  • Solar thermal and solar PV systems (30-50% of the cost up to a specific maximum amount),
  • Geothermal heat (40-50%), and
  • Biomass heaters (25-30%).
  • Condensing boilers are also subsidised between EUR 80 and EUR 600.
  • Micro cogeneration fuelled by renewable energy sources is subsidised up to 25%, while connection to a heating source fuelled 75% by renewable energy sources is subsidised EUR 15/kW or EUR 50/kW (up to a maximum amount of kW) depending on the type of housing.
  • Energy consultation for the construction of low-energy and passive houses, and for energy-efficient refurbishment, are subsidised up to EUR 50/hour.


In order to download full version of the Financial aid programme (in French) please, click here.

Related policies:Framework Law concerning rational use of energy: Law of 5 August 1993

Last modified: Tue, 15 Oct 2013 12:51:17 CEST