(L-R) Fenn Faber, Klima Agence; Claude Turmes, Luxembourg's Minister for Energy; Georges Reding, MEA; Credit: Otilia Dragan/Chronicle.lu

On the morning of Tuesday 11 July 2023, the Luxembourg Minister for Energy, Claude Turmes, presented an assessment of the development of the policy for solar energy promotion in Luxembourg and took stock of new advances in the solar energy sector.

Minister Turmes stressed that Luxembourg citizens and businesses have expressed more and more interest in solar energy over the years.

The minister also emphasised that, according to an estimate by EurObserv’ER this year, Luxembourg is in the seventh position in Europe concerning solar energy watt produced pro capita in 2022, with 491.2, slightly above the EU total (437.4).

The development of solar energy production has grown steadily since 2018 in Luxembourg. Although last year was “a difficult year”, according to government estimations, around 90 MW of solar energy was most likely produced in 2022. The number of solar energy panels installed grew by 1,264 in 2021, by another 1,014 in 2022 and an exponential growth of around 5,000 is expected for 2023.

The minister explained that this growth is due to the technology becoming more financially attractive, because the VAT was lowered by 3% and additional subsidies were increased. This year, the Luxembourg Ministry of Energy also made batteries, not only solar panel installations, eligible for subsidies. The ministry also simplified the application procedures and aimed to improve the guidance offered in this area. In addition, it abolished the obligation to install a second solar power counter for photovoltaic power plants of 30 kW or less installed in autonomous system mode. This will come in effect in September 2023.

The current digitalisation efforts are another simplifying factor for applications, according to Minister Turmes, allowing applicants to ask for an instant connection with a professional and appointments online, signing contracts on the website directly.

Furthermore, “Plug and play” photovoltaic systems on balconies can be commissioned without any administrative procedures and reportedly become profitable after five to seven years.

In order to further simplify the processes, the ministry’s network operators are in the process of digitalising their processes, in particular with the possibility of making connection requests and appointments online.

Minister Turmes also expressed his joy at the interest farmers had shown in photovoltaic energy between 2021 and 2022 and he announced that a Luxembourgish enterprise is in the process of building a solar panel manufacturing firm (building process to start this autumn).

Furthermore, he raised the issue of the necessity that electricians follow appropriate courses in centres of competence to acquire the necessary know-how to work with solar panels. For this, the ministry will invest €2.5 million in innovation and solar energy in the next two years.