and for low-income earners are just some of the measures that have been taken to try to counter the rising cost of energy in Luxembourg. But many individuals are also tempted to produce their own electricity with a photovoltaic installation.
“In recent weeks, we have seen a sharp increase in requests for advice, especially in the area of photovoltaics, which shows the significant interest that individuals have in more structural solutions,” said Fenn Faber, director of Klima-Agence (formerly Myenergy).
The office, which offers free advice on saving energy, saw a 90% increase in requests last year, with 9,207 consultations issued, about half of which related to renewable energy.
The tax break is having an effect
The same is true for companies specialising in the installation of photovoltaic panels: demand is currently very high.
“We’re not far from doubling the number, and have been for almost a year,” said Grégory Klein, managing director of BK Industrie. The company, which has been based in Schengen since 2004, is currently able to respond to customer requests within six to nine months, which is three times longer than in the past.
The shortage of materials seems to be contained--for the time being--thanks to a large stock. “We are managing to keep the price increase under control, we are currently at +10%,” said the manager.
Alongside environmental awareness, he also observes an effect of the tax reform linked to photovoltaics introduced last year in Luxembourg, which opens the way to larger installations for individuals. The reform exempted revenue from selling solar energy as a private producer from taxation, with the amount capped at 10kWp.
“Today, you need to count on an investment of between €10,000 and €30,000 (incl. VAT)," said the manager, who expects demand to stabilise.
A full order book
“Demand is exploding. Already last year, we had to give up many projects,” said Raymond Reiners of Topsolar, which has been active in the north of the country since 1995. In this particular context, the 10-employee SME decided to concentrate its activity on photovoltaics only, for example leaving aside rainwater harvesting solutions.
And while the end of the first quarter has not yet been reached, the Heiderscheid company^s order book is already full for this year 2022, said its manager. He still expects growth, but perhaps less than the current rate of 50 to 70 orders per week.
This is quite a challenge for the SME, which, like others, is faced with the rising cost of products, with the result that it has to find ways of limiting the damage to its cash flow, but also the challenge of recruiting qualified labour. “Two years ago, installations were 15 to 20% cheaper. And it seems that the price is going to go up again,” he said.
Companies that were hesitant before are speeding up their decision-making process.
Even are jumping on the photovoltaic bandwagon, according to industrial project installer Enerdeal. “Companies that were hesitant before are speeding up their decision-making process because what may have been interesting or opportunistic before becomes critical, even strategic, today,” said executive partner François Neu.
The momentum is particularly opportune, because “rather than re-injecting at the state-guaranteed tariff, our clients now want to self-consume their solar production, because prices currently exceed this guaranteed tariff, which nevertheless remains a guaranteed minimum in the event of non-reinjection,” he said.
More than ever, photovoltaic electricity seems to be shining on the roof as well as in the accounts.
This story was first published in French on . It has been translated and edited for Delano.