Individuals will be able to pre-finance their solar installation, paying only their share of the cost, while the installer will be reimbursed “within a short period of time” by the government. Photo: Shutterstock

Individuals will be able to pre-finance their solar installation, paying only their share of the cost, while the installer will be reimbursed “within a short period of time” by the government. Photo: Shutterstock

Announced in the coalition programme, pre-financing for the installation of solar panels or energy storage systems became a reality with the tabling of draft regulations at the end of November.

100% of Luxembourg residents are in favour of installing solar panels above their house or flat. But how do you finance this infrastructure--the vast majority of which is produced in China--and sold at a premium in Luxembourg without taking out a loan?

As promised, the government finally tabled its draft regulation at the end of November. The aim is for it to act like a third-party payer in the health sector: installers will deduct directly from the invoice the share that the state is prepared to cover, and the state, says the draft, undertakes to reimburse the installer as quickly as possible, so as not to put craftsmen in difficulty. A register of accredited installers will be set up by the government. Applications will be made using a digital form on “My Guichet” and will also be processed entirely digitally via the “Backoffice” at the economy ministry.

The system will cost €43m a year, says the financial impact statement. “For 2023, the subsidy for photovoltaic installations will be €17.5m and for batteries €5m, making a total of €22.5m. For installations installed between January and mid-August 2024, a certain acceleration in applications can be observed. For the eight and a half months recorded, the amount is €35.3m for photovoltaic installations and €9.5m for batteries, for a total of €44.8m. If we assume that deployment for the rest of 2024 remains constant, the total amount comes to some €63.3m. It should be noted, however, that 2024 has seen exceptional growth in photovoltaic installations: in 2023, there were a total of 2,866 installations with a capacity of 30 kilowatts or less, while in 2024, up to mid-August, 4,560 installations were registered. The annual financial impact could be estimated using the average of the two above-mentioned amounts for 2023 and 2024, and would therefore amount to €43m.”

Hypothetical scenarios

Based on the document’s formula for calculating the amount of aid, we have recalculated the aid for three situations. These are purely indicative:

- 3 KWP installation: generally made up of around eight to 10 solar panels, this configuration can produce between 2,700 and 4,500 KWH per year, depending on the amount of sunshine and the orientation of the panels. The amount of support would be €3,168.

- 6 KWP installation: made up of around 16 to 20 panels, it can generate between 5,400 and 9,000 KWH a year, depending on the specific conditions of the site. The amount of aid would then be €5,742.

- 9 KWP installation: with around 24 to 30 panels, this installation can produce between 8,100 and 13,500 KWH per year, depending on the sunlight and installation characteristics. The amount of support would be €7,722.

The same applies to the storage facility, which, in the case of a multi-dwelling apartment block, is only eligible if the peak electrical output of the solar photovoltaic system is greater than 1.5 kilowatts per dwelling unit. With a different calculation formula.

This article was originally published in .

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