On Thursday 31 March 2022, the Chamber of Deputies (Luxembourg's Parliament) adopted a bill amending the 2016 law establishing a financial aid scheme for the promotion of sustainability, the rational use of energy and renewable energies in the housing sector.
This bill, accompanied by a draft Grand-Ducal Regulation which sets the implementing measures for projects initiated during the years 2022 to 2025 inclusive, extends and redirects the financial aid scheme known as "PRIMe House".
The publication of the two texts in the Official Journal and their entry into force are expected in the coming days. These new provisions, of retroactive application for projects initiated from 1 January 2022, thus replace the PRIMe House financial aid scheme specified by the amended Grand-Ducal Regulation of 23 December 2016.
The new financial aid scheme applies to the following investments and services:
New developments
The provisions introduced at the end of 2016 have been renewed for one year, pending a general reform of the sustainability criteria of the LENOZ certification system set by the Grand-Ducal regulation of 23 December 2016 relating to sustainability certification housing.
This applies to projects for which the building permit is requested during the year 2022.
Sustainable energy renovation of existing homes
The new PRIMe House scheme largely follows the structure of the 2016 scheme. The main changes relate to the introduction of simplified procedures for accessing aid for energy renovation projects involving only one building element of the thermal envelope. From now on, for these projects, full energy advice is optional. However, the applicant must either call on an energy consultant to support the renovation work or have the work carried out by a certified craftsperson. This adaptation will make it possible to steer those project owners who do not wish to have a full energy consultancy drawn up towards the PRIMe House scheme, thus guaranteeing that the renovation works meet the minimum requirements set by the regulatory provisions.
Furthermore, in order to stimulate not only energy-efficient, but also sustainable renovation, the amounts of subsidies are now clearly structured according to the category of insulating materials (fossil, mineral, ecological). The promotion of ecological insulation materials is reinforced, with amounts allocated per square metre adjusted upwards. This goes hand in hand with the abandonment, on 1 January 2024, of subsidies for insulation based on materials of fossil origin, unless the latter are composed mainly of recycled materials. Fossil thermal insulation remains eligible for walls and lower slabs against ground for which the alternatives are limited.
The additional incentives for further and comprehensive remediation, which can be carried out in several stages, continue to apply. Aid relating to the implementation of controlled mechanical ventilation is now reserved solely for installations with heat recovery.
The new scheme covers investments and services for which the invoice is established between 1 January 2022 and 31 December 2029 inclusive, provided that the first request for obtaining an agreement in principle is submitted from from 1 January 2022.
Technical installations using renewable energy sources
With regard to technical installations using renewable energy sources, the changes aim above all to make alternatives to fossil fuels more accessible. They further encourage the replacement of old boilers based on fossil fuels by a heat pump, a connection to a heating network or a wood-fired boiler, in return for a subsidy for replacing and improving the heating system. Added to this is additional specific aid for the neutralisation and recycling of the fuel oil tank.
The focus is on heat pumps, with increased amounts and eligibility of air-water heat pumps in existing buildings. Noise emission requirements have been introduced for heat pump elements installed outside the building.
As for biomass boilers, aid is now reserved for existing buildings, the heat pump generally constituting the reference for new constructions. Biomass boilers must also comply with stricter requirements in terms of fine particle emissions. For wood pellet and wood chip boilers, subsidies are now determined according to the nominal thermal output of the boiler.
The amounts of financial aid for setting up a heating network and for connecting a home to such a network have been considerably increased compared to the system put in place in 2016.
With regard to photovoltaic installations (solar panels), the existing support methods, combining investment aid with remuneration for the electricity produced, are maintained, while an alternative model aimed at promoting self-consumption is also proposed.
Investments and services for which the invoice is established between 1 January 2022 and 31 December 2025 inclusive are eligible under the new scheme. Apart from photovoltaic installations, this period is extended until 31 December 2029 inclusive, provided that the investments and services in question are carried out jointly with the energy rehabilitation of an existing building.
Energy advice
The maximum amounts of aid for energy advice have been revised upwards. High-quality, comprehensive energy advice remains necessary and is considered the optimal starting point for more extensive renovation projects.
The amounts of flat-rate financial assistance for energy advice have been increased by 50% or more compared to the 2016 scheme, thus reaching the amounts applicable during the validity of the "Neistart Lëtzebuerg" programme. Flat-rate financial aid for calculating thermal bridges and related treatment proposals has also been substantially increased. The same is true for the aid allocated for the verification of the conformity of the offers and the verification of the conformity of the implementation on site respectively.
Services for which the invoice is issued between 1 January 2022 and 31 December 2029 inclusive are eligible under the new scheme.
The detailed provisions of the updated PRIMe House financial aid scheme, including the aid amounts, are illustrated on the Klima-Agence website (in French and German) at: https://www.klima-agence.lu/fr/cleverwunnen and https://www.klima-agence.lu/fr/cleverhetzen.
The financial aid application forms will be available online at https://environnement.public.lu/fr/emweltprozeduren/personnes-privees/Energie.html as soon as the texts are published in the Official Journal, and subsequently also on www.guichet.lu.
