FAQ

The provision for the super-reduced rate limits its application based on the type of building equipped with solar panels. It applies to private residences, housing, and public or other buildings used for activities of general interest, as well as those in close proximity to such buildings.

For “private housing”, this refers to buildings of which at least three quarters of the total surface area is dedicated for residential purposes. The same rule applies to housing, public buildings, and other structures used for activities of general interest: at least 75% of the total surface area must be reserved for these specific uses. 

A definition of this is provided in the amending regulation "Règlement grand-ducal du 23 décembre 2022": 1° the grand-ducal regulation amended on 21 December 1991 determining the limits and application conditions of the reduced, super-reduced and intermediate rates of value added tax; 2° […], and the following explication is provided by bulletin No 816 issued by the Registration Duties, Estates and VAT Authority: “private housing and buildings used by public authorities not subject to tax for activities carried out as such or used by those subject to tax for activities of general interest exempt from VAT without the right to deduct input tax (notably hospitals, schools, children’s nurseries, youth hostels and retirement homes)”. The provision of cultural services have been added to the latest list.

The delivery and installation of photovoltaic solar panels near the types of housing or buildings mentioned above still qualify for the super-reduced 3% VAT rate, provided they are installed on adjoining or nearby properties. These properties must be close to private residences, housing, or public buildings used for activities of general interest, and the solar panels must be connected to the thermal and/or electrical network of the relevant housing or buildings.

The grand-ducal regulation of 23 December 2022 amending: 1° the grand-ducal regulation amended on 21 December 1991 determining the limits and application conditions of the reduced, super-reduced and intermediate rates of value added tax; 2° […] defines in the context of the reduction of the VAT rate the “delivery and installation of solar panels” as follows: “work on a property consisting of the delivery of solar panels and their installation”.

As a result, all the parts necessary for this installation and its operation also come under the super-reduced rate, which implies the following parts of the photovoltaic solar panels: photovoltaic panels (or hybrid solar collectors), fixing rails, DC and AC electric cabling connected directly to the photovoltaic installation, inverter, electrical protection devices, bidirectional meter; and for the thermal solar panels: thermal solar collectors, fixing rails, insulated pipework, solar storage reservoir, calorimeter, peripheral equipment (power feed, regulation, heat exchangers); as well as, of course, the costs of installation.

For the photovoltaic solar panels, a storage installation (battery) is therefore not involved.

It is also important to note that the super-reduced rate only applies to such installation work on a solar power plant. Bulletin No 816 issued by the Registration Duties, Estates and VAT Authority defines this notion of “work on a property” as follows: “Therefore, there is reason for understanding this new provision not as the delivery of solar panels or the installation of such panels carried out separately, but as work on a property that consists of a delivery of solar panels with installation”.

Applications for obtaining financial aid must be submitted no later than 12 months after the last invoice was issued in connection with the investment.

The approved energy adviser is responsible for:

• carrying out on-site energy consulting;
• drafting the "conclusive report" (a comprehensive inventory of the property in question, the content of which must include a description of the property, the date of the site visit, the energy performance certificate prior to the retrofit and an integral energy renovation concept);
• checking the conformity of the offers to the measures proposed in the above-mentioned energy retrofitting concept;
• checking the conformity of the implementation on site with the measures proposed in the energy retrofitting concept;
• drafting a final report that must be attached to the request for payment of financial aid; 
• completing the forms for the request for an agreement in principle and for the payment of financial aid.

The quality assurance system for approved energy advisers within the meaning of the Klimabonus subsidy scheme includes the following:

• verification of the basic qualifications of the energy adviser;
• verification of any additional qualifications of the energy adviser;
• checking and approval, prior to certification, of an energy consultation report for a retrofitting project;
• a timely and regular quality control system, including: 
  • quality control of the services provided by energy advisers;
  • checking compliance with the conditions associated with the ongoing training of energy advisers, and
  • implementation of a customer evaluation system.

Since January 2017, energy advisers have been able to obtain certification by submitting an approval application to the Environmental Administration. Approval is conditional on membership of the OAI (architect or engineer in accordance with the Law of 13 December 1989) or an authorisation in accordance with the Grand Ducal Regulation of 10 February 1999 on the approval of natural or legal persons, private or public, other than the State, for the performance of technical study and control tasks in the field of energy, as amended.

From 15 December 2018, approved energy advisers will have to join a quality assurance system in the field of energy and sustainability consultancy for residential buildings with a body contracted for this purpose by the Ministry of Sustainable Development and Infrastructure. 

Benefit from financial support of up to 50% of the investment cost!

Under Article 4(h) of the Law of 31 May 1999, as amended, establishing a fund for the protection of the environmental, municipal administrations, municipal associations and public bodies under the supervision of the municipalities may receive aid covering up to 50% of the investment cost for projects for the rational use of energy and the promotion of new and renewable energy sources. This financial aid is accessible to all municipalities, regardless of their commitment to the climate pact.

Yes, it is possible to recycle these batteries. It is regulated by the amended Law of 19 December 2008 on batteries and accumulators and waste batteries and accumulators, which enacts European Directive 2006/66/EC into Luxembourg law. This directive requires at least 50% of the weight of batteries other than lead-acid and nickel-cadmium types, i.e. lithium-ion batteries, to be recycled.

The components that are currently most attractive for recycling are cobalt, nickel, copper and aluminium. In the medium term, the lithium recycling rate should improve to ensure supply.

For more information or instructions relating to the recycling of these batteries, which are considered to be industrial accumulators, please contact either SuperDrecksKëscht or the Ecobatterien asbl association.

To assess the environmental impact of batteries, it is necessary to take into account the rare and partly at-risk resources (lead, lithium, etc.) consumed, their origins and the mix of electricity used in the production of the batteries.

Lithium-ion batteries are made of cobalt, nickel, copper, aluminium and lithium, as well as other materials. Among these materials, the availability of lithium in particular is a hot topic. Over the short term, reserves are sufficient to guarantee the manufacture of the batteries; nevertheless, it will be necessary to improve the recycling capacity of lithium to ensure supply over the medium term.

Analysis of the environmental impact of these batteries is currently a major topic of research. Although there have already been positive developments in terms of cost effectiveness, performance and the environmental impact of batteries, they are still under intense development and significant progress is expected in the near future.