Incentives for Green Retrofit
Are there any government-funded or sponsored schemes for improving the energy efficiency of existing buildings and, broadly, how do they work?

The Luxembourg government encourages energy renovation measures for both renovation projects and new constructions, employing various subsidies under the Klimabonus subsidy program (formerly PRIME House), introduced by the Law of 2016 (discussed in the “Green Certification” section) and the Grand-Ducal Regulation of 7 April 20221 determining the implementing measures for the Luxembourg law of 23 December 2016 (“GDR 7 April 2022”).

Any owner, whether it is a single-family house or a multiunit dwelling, can apply for financial aid. Eligible applicants include natural persons (individuals), legal entities established under private law and public legal entities, excluding the state. This subsidy is granted once per installation and covers both insulation measures to reduce the building’s specific heating requirements and the installation of renewable energy technologies. It covers the following systems:

  • Solar thermal - using solar panels to heat up water for your home
  • Solar photovoltaic - using solar panels to generate electricity for your home or the grid
  • Heat pumps - an energy-efficient alternative to a boiler or air conditioner, moving air from outside to heat your home, and vice versa to cool it in the warmer months
  • Wood-fueled boilers and stoves - biomass boilers or stoves that use renewable energy, such as wood chips or pellets, to heat your home
  • Implementation or connection to a heat network - giving excess energy generated to the energy grid in return for a payment and getting a subsidy on this connection to the network
  • Attic floor and roof insulation

Some communes in Luxembourg grant additional or supplementary aid on top of that given by the state for energy savings or renewable energy.2 Gas and electricity suppliers also have energy efficiency aid programs.

The Klima Agency in Luxembourg,3 a federal government office created to support and advise all actors in their commitment to climate protection and energy transition, has set up a calculator that helps people to understand which subsidy they are eligible for under the state, the community and any supplier support. The calculator will also indicate potential packages of installations that can be installed, such as solar panels or a heat pump.



[1] Grand-Ducal Regulation of 7 April 2022 — Legilux (public.lu).

[2] Subsidies aimed at combatting climate change | Ville de Luxembourg (vdl.lu).

[3] Klima-Agence — Subsidy simulator.