Every region has plenty of premiums and tax reductions for renovation, increasing the EPC level and with a possibility to deduct some expenses from existing taxes.

The federal government recently increased the VAT rate on energy in Belgium from 6% to 21%. Although this was primarily a budget exercise, its benefits as an additional stimulus for energy efficiency investments are clear. Many social public service obligations have been imposed on the grid operators protecting households that are struggling to pay their energy bills. This should serve as a social safeguard, while the increased price of energy consumption should increase efficiency.

The VAT rate on works for the installation of the following for homes less than 10 years old will be reduced from 21% to 6% from 1 April 2022 to 31 December 2023:

• Photovoltaic solar panels
• Thermal solar panels
• Solar water heaters
• Heat pumps

For heat pumps, that measure has been extended through 31 December 2024. That extension does not apply to solar panels and solar water heaters.