Legal sources on renewable energy

• Loi du 22.2.2004 (Loi du 22 février 2004 - Act of 22nd February 2004)

• RGD 21.12.2007 (Règlement instituant un régime d’aides pour des personnes physiques - Regulation on establishing a system of promotion for natural persons)

• RGD 8.2.2008 (Règlement relatif à la production d’électricité basée sur les sources d’énergie renouvelables - Regulation on the generation of electricity based on renewable energy sources)

• Circulaire du 23.5.2003 (Circulaire du directeur des contributions L.I.R. n°14/2 du 23 mai 2003 - Rundschreiben der Finanzbehörde L.I.R. Nr. 14/2 vom 23. Mai 2003)

• Price regulation. Electricity generated from renewable energy is promoted through a feed-in tariff. Operators of plants that generate renewable-energy-sourced electricity are entitled against the grid operator to the conclusion of a contract on the purchase of the electricity they produce.
• Subsidies. The installation of solar systems in private households is promoted through investment grants. Companies may also receive grants for investments in renewable-energy-sourced electricity.
• Fiscal regulation mechanisms. Income from photovoltaic systems that generate 1 to 4 kWp is exempt from income tax.

In Luxembourg, the feed-in tariff applies to electricity generated from any source of renewable energy except for geothermal energy. Investment grants subsidise electricity generated from any renewable energy sources, while grants for private households and fiscal benefits promote solar energy only.

All instruments of promotion of renewable energy apply to the Grand Duchy of Luxembourg only.

The costs of the feed-in tariff are borne by the grid operator. Subsidies and lower revenue due to the tax reductions are covered by the budget of the ministries in charge.