Energy saving grants

Energy has a cost, and you should be doing everything in your power to reduce this burden. Renovating your home is a particularly good approach. The government, energy suppliers and municipalities offer various types of support and grants to help with this. myLIFE provides a quick overview of these schemes to help you reduce your energy bills.*

Renovating your home to make it greener generally requires major investments but also offers numerous long-term advantages: energy savings, an uplift in the value of the property, a reduction in heating bills and increased comfort. Energy renovation focuses on improving the energy performance of your home via various measures including insulation, windows replacement and a more efficient heating system. This issue is of particular importance to the government, which will help you by directly or indirectly financing parts of your renovation work.

Below you will find an overview of the assistance available from the Ministry of Environment, Climate and Biodiversity, the Ministry of Housing and Spatial Planning, energy suppliers and local authorities. Make sure that you always check the conditions attached to the various grants that are available.

The Klimabonus program

The Klimabonus subsidy program aims to encourage a more climate-friendly lifestyle. In particular, it offers, under certain conditions, financial assistance to promote the energy renovation of a building or part of its thermal envelope. Rest assured, you are not required to renovate your entire home. Replacing your windows, insulating your roof or a wall can also qualify for financial support. The program also encourages the use of renewable energies (heat pumps, solar thermal, etc.) as well as the sustainable construction of housing. It is gradually replacing the PRIMe HOUSE aid scheme for all applications submitted since 2022.

Klimabonus offers, under certain conditions, financial assistance to promote the energy renovation of a building or part of its thermal envelope.

The energy consulting grant

To benefit from Klimabonus assistance, certain energy renovation works require you to consult an approved energy advisor beforehand. The advisor will ensure the relevance and quality of your project. This service is subject to a charge, but you can nevertheless obtain a basic subsidy of €1,500 for a single-family house and €1,800 for a residence with two apartments. An additional €50 is added for each extra apartment, with a ceiling of €2,600, never exceeding the actual costs of the energy consulting. This financial aid, which is part of the Klimabonus program, is only granted if at least one renovation measure has been carried out. Additionally, for each of these measures, an amount of €275 is granted for the verification of quotes and the implementation of the measure. Please note that the amount may vary depending on the nature of the work and financial support already obtained.

The improvement bonus for energy refurbishment

Households with modest incomes can, under certain conditions, benefit from an improvement bonus for energy refurbishment, also known as the Topup Klimabonus. This can represent between 10 and 100% of the amount of the Klimabonus aid already granted.

State home loan guarantee for climate loans

If you wish to take out a loan for the energy renovation of your home that is more than 10 years old or to equip it with recent technical installations, you may, under certain conditions, benefit from a State home loan guarantee for a climate loan. The amount of the guarantee depends on the amount of the loan and can be up to a maximum of €50,000 over a period of 15 years.

The interest subsidy for climate loans

If you have taken out a loan to carry out energy renovation work on your home, you may, under certain conditions, benefit from an interest subsidy. In other words, the State can grant you assistance with the interest, allowing you to reduce the monthly payments you make to repay the amount borrowed for your renovation work. The subsidy rate is 1.5%, but it cannot exceed the effective rate of the loan. The amount is determined based on the characteristics of the loan, up to €100,000.

Certain energy renovation works carried out in your main residence may benefit from a reduced VAT rate of 3%.

Reduced VAT rate

Another piece of good news is that certain energy renovation works carried out in your main residence may benefit from a reduced VAT rate of 3%. However, the amount of this tax incentive cannot exceed €50,000 per dwelling over its entire lifetime. Find out about the eligible works.

Financial aid for the LENOZ certificate

If you have obtained a LENOZ certification (Lëtzebuerger Nohaltegkeets-Zertifizéierung fir Wunngebaier) to assess the sustainability of your home, you may, under certain conditions, benefit from financial aid. The amount is a maximum of €1,500 for a single-family house or €750 for a dwelling in a collective building.

Energy suppliers’ assistance

Energy suppliers also support your energy renovation projects. To help you, whether you are an owner or a tenant, they have currently set up the ENOPRIMES program as well as an energy aid scheme offered by Sudstroum, covering various works such as the replacement of heating systems or windows, thermal insulation, etc. This scheme rewards you for reducing your consumption and grants you a bonus that lowers the amount of your investment. The more your project saves energy, the higher the bonus amount will be. A win-win solution every time! There is also the nova naturstroum fund, which rewards the best projects that promote sustainable development in Luxembourg.

Municipal subsidies

Many Luxembourgish municipalities support you in carrying out your sustainable renovation works by offering additional grants, generally conditioned by the state Klimabonus aid. Do not hesitate to seek information from your local municipal administration.

Good to know: while the Klimabonus program and energy supplier aids mainly focus on energy aspects, the Ministry of Housing and Spatial Planning also grants, under certain conditions, aid in the broader field of renovation. Although these place less emphasis on energy efficiency, they mainly support households with modest incomes. The improvement grant, for example, can be useful for roof repairs, treating damp walls, or replacing windows.

To find out more about the financial support you may be eligible for regarding your renovation projects, consult the aid simulator on the klima-agence.lu website.

If renovation works to improve the performance of your home represent a significant investment, state or municipal grants and subsidies can provide the necessary boost to help you carry them out.

* Content translated from French by the BIL GPT AI tool