In 2023, Luxembourg’s cumulative solar photovoltaic capacity amounted to some 432 megawatts.⁵

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• Luxembourg’s Ministry of Sustainable Development and Infrastructure has unveiled a new energy strategy targeting an increase in the country’s power generation capacity from solar and renewable sources by approximately 4.8 GW by 2050.
• The government anticipates that this new capacity will primarily come from solar energy. To achieve this growth, the ministry plans to install around 75 MW of solar capacity annually until 2050.

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• The specific tariffs are not available separately, but you can estimate all the tariffs by entering the calendar year of the start of electricity feed-in at: https://klima-agence.lu/en/renewable-energies-feed-in-tariffs.
• Remuneration for electricity produced from renewable sources is guaranteed by feed-in tariffs according to the Grand Ducal Regulation of 1 August 2014 and the Grand Ducal Regulation of 12 April 2019.

In energy mix of Luxembourg, Biomass & Waste contribute 209,000 MWh (62.48%), followed by Wind at 101,000 MWh (30.19%), Solar at 100,000 MWh (29.89%), with additional contributions from Geothermal, and Tide & Wave.⁸

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Exact number of hours are not available but,

• Luxembourg is known for having one of the most reliable power grids in the world, with very few power outages.
• The country’s electricity supply is highly stable. But a recent incident in February 2024 is reported as;
  • Several municipalities in Luxembourg experienced power outages lasting up to 80 minutes.
  • The disruptions, caused by fallen trees impacting power lines, affected areas such as Rambrouch, Schuttrange, Sandweiler, Contern, Boulaide, Lac de la Haute-Sûre, and Winseler.
  • Prompt action by energy provider Creos restored power to most areas, with Lac de la Haute-Sûre experiencing the longest interruption.
  • Schrassig Prison was also affected, but its emergency systems prevented any operational disruptions.

Current installation ¹⁰

In Luxembourg, nearly 5,000 photovoltaic installations in residential areas produce approximately 30 gigawatt-hours of energy annually, sufficient to power around 7,000 households.

Projected installations ¹¹

The Luxembourg regulator has listed a total of 10,329 solar installations in Luxembourg for future.

Installed Solar Farms ¹¹

23 photovoltaic farms were installed till 2022.

Projected Solar Farms ¹²

106 new projects were proposed recently, 85 were selected for investment aid, representing 75 companies across various sizes and sectors.

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Current Demand

• Rural Areas: Rural areas in Luxembourg are experiencing higher solar panel demand compared to urban areas.
• Capacity: The geographical distribution shows that rural regions, such as Wincrange, have a much higher rate of solar capacity per inhabitant compared to urban centers like Luxembourg City.
• Productivity: Rural buildings generally have better exposure to sunlight due to fewer obstructions and larger roof areas, contributing to higher photovoltaic production.

Future Demand

• Government and Industry Initiatives: The increasing number of solar installations in rural areas, supported by government and company projects, reflects a growing emphasis on harnessing solar energy in these regions.
• Future Growth: With the continued expansion of solar projects and anticipated installations, the demand for solar panels in rural areas is expected to rise further.

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Current Demand:

• The installed capacity of on-grid solar panels in Luxembourg includes both small residential setups and larger commercial and industrial projects.
• Historical projects have included significant installations, such as 292 kW of grid-tie systems using high-efficiency mono-crystalline panels.
• Recent projects involve rooftop solar installations with a total investment of $1.5 million for solar PV modules in Luxembourg and Belgium.
• These installations contribute to reducing carbon emissions and provide financial benefits through feed-in tariffs.

Projected Demand:

• Future demand for on-grid solar panels is expected to rise due to increasing government incentives and a shift towards renewable energy.
• Market expansion is anticipated with more residential and commercial rooftop installations as technology advances and costs decrease.
• Innovations in solar technology, including higher efficiency panels and integrated monitoring systems, are likely to drive further growth.
• Government policies and subsidies are expected to play a crucial role in boosting solar energy adoption, supporting both new installations and large-scale projects.

A Solar Photovoltaic Installer in Luxembourg would earn approximately:¹⁵

• Typical annual salary: $40,570
• Lowest average salary: $21,235
• Highest average salary: $60,014

The current population of Luxembourg is 674,329.¹⁶

Estimate for Factory Rent

Monthly Average Warehouse Rental Cost¹⁷

Luxembourg-Hollerich

• Rent: $6,254
• Description: Warehouse of 4,586 sq ft dimensions in the Hollerich district, providing ample room for various commercial needs.

Luxembourg-Hamm

• Rent: $4,505
• Description: In Hamm, warehouse spans 3,045 sq ft, making it suitable for mid-sized operations.

Luxembourg-Gare

• Rent: $53
• Description: A small 43 sq ft space in the Gare area, ideal for very limited storage needs or a small office.

Luxembourg-Bonnevoie

• Rent: $7,950
• Description: 3,229 sq ft warehouse in Bonnevoie is priced higher but offers a larger space for extensive storage or commercial use.

Luxembourg-Merl

• Rent: $211
• Description: A small 108 sq ft warehouse in Merl, suitable for compact storage requirements.

Key Components of Administrative Costs

Salaries and Wages: ¹⁵

A Solar Photovoltaic Installer in Luxembourg would earn approximately:

• Typical annual salary: $40,570
• Lowest average salary: $21,235
• Highest average salary: $60,014

Monthly Rents for Office Space¹⁸

Central Business District (CBD)

• Rent: $58.41 per sq m per month
• Description: The CBD is the most expensive district for office space in Luxembourg City, with prime office rents reaching $58.41 per square meter per month.

Kirchberg

• Rent: $44.31 per sq m per month
• Description: Kirchberg, the second-most expensive district, has prime office rents at $44.31 per square meter per month.

Electricity Generation¹⁹

• In 2022, bioenergy was the leading source of electricity generation in Luxembourg, contributing 32.7 percent to the total power production.
• Wind energy was the second-largest contributor, accounting for 28.3 percent of the country’s power mix.
• Overall, more than 85 percent of Luxembourg’s electricity production came from renewable sources that year.

 Transmission & Distribution²⁰

• The Grand Duchy of Luxembourg is served by two high-voltage double lines from Germany, connected through the Trier and Bauler substations.
• Additionally, Luxembourg has an interconnection with Belgium.

 Energy Access²¹

• In 2022, the World Bank reported that access to electricity in Luxembourg was 100% of the population, based on data collected from officially recognized sources.

Energy Exports²²

• Luxembourg’s latest exports are dominated by iron blocks ($1.61 billion), rubber tires ($761 million), gas turbines ($633 million), cars ($561 million), and cellulose fiber paper ($553 million).
• The primary destinations for Luxembourg’s exports are Germany ($4.15 billion), France ($3.07 billion), Belgium ($2.09 billion), the Netherlands ($1.58 billion), and Italy ($883 million).

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Regulatory Framework

• The deployment of renewable energy in Luxembourg, including solar panels, is governed by various regulations.
• Notably, Council Regulation (EU) 2022/2577 mandates expedited procedures for granting building permits for renewable energy systems.
• For solar energy systems and co-located energy storage systems, the time limit for issuing building permits is set at a maximum of 3 months. Installations with capacities up to 50 kW receive tacit approval if the mayor does not respond within one month.
• However, these expedited timelines do not apply in cases involving cultural or historical heritage, national defense, or protected areas.

Tender Process

• New photovoltaic installations are subject to a tender process to qualify for support, ensuring fair competition and efficient allocation of resources.

Grid Access

• Access to the electricity grid for renewable energy sources is regulated by general energy law provisions.
• While renewable energy is not granted automatic priority, it benefits from various privileges such as cost reductions and preferential use during power shortages.

Publication of Decisions

• Municipalities are required to publish all decisions regarding the granting of authorizations for renewable energy installations.
• This includes making negative decisions public, although the specific modalities for publication are determined by the municipalities.

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Increased Subsidies: Since January 1, 2023, subsidies for self-consumption solar PV installations have been raised to 62.5%. This substantial increase aims to make solar energy more accessible and affordable for homeowners and businesses.

Reduced VAT: The VAT on new solar PV installations has been reduced to 3% from the beginning of 2023. This tax reduction lowers the initial cost of solar systems, encouraging more widespread adoption.

Higher Taxable Income Threshold: The taxable income threshold for PV installations has been raised to 30 kW, allowing larger installations to benefit from subsidies and reducing financial barriers for larger projects.

Self-Consumption Metering: Starting in September 2023, systems up to 30 kW used for self-consumption are exempt from the requirement to install a second meter. This simplifies installation and reduces costs for small to medium-sized solar systems.

Plug-and-Play Systems: Solar systems that can be installed on balconies are now exempt from administrative requirements, facilitating easier and quicker installation for small-scale solar projects.

Tender Rebate Program: Luxembourg’s inaugural solar self-consumption tender, with a budget of €30 million (approximately $33 million USD), allocated €16.1 million (about $17.7 million USD) in rebates to 85 selected projects. The tender covered three categories of PV installations:

• 30 kW to 200 kW: Subsidy ceiling of €810/kW (about $891/kW).
• 200 kW to 500 kW: Subsidy ceiling of €610/kW (about $671/kW).
• 500 kW to 5 MW: Subsidy ceiling of €530/kW (approximately $583/kW).

Luxembourg’s National Energy and Climate Plan (PNEC)

• Luxembourg’s National Energy and Climate Plan (PNEC) for 2021-2030 outlines the country’s climate and energy goals, focusing on reducing greenhouse gas emissions by 55% compared to 2005 levels, achieving a 35-37% share of renewable energy in final energy consumption, and improving energy efficiency by 44% by 2030.
• The plan includes 197 measures across various sectors, such as a CO2 tax, promoting the electrification of the car fleet, and phasing out fossil fuel heating. The PNEC also emphasizes public engagement and collaboration between ministries to ensure a just and sustainable energy transition.

These measures reflect Luxembourg’s commitment to expanding solar energy capacity, supporting renewable energy adoption, and fostering energy independence

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Current Solar Projects

ArcelorMittal Differdange Floating Solar Farm

• Location: Differdange, Luxembourg
• Capacity: 3 GWh/year
• Details: Inaugurated in October 2021, this floating solar farm features 25,000 square meters of solar panels across a 5.7-hectare surface. It supplies electricity to nearly 800 local homes and contributes to Luxembourg’s energy self-sufficiency.

Beidweiler Solar Park

• Location: Beidweiler, Luxembourg
• Capacity:
  • Beidweiler I: 4.9 MWp
  • Beidweiler II: 2.8 MWp
• Details: Part of Luxembourg’s largest solar installations, this park was developed for RTL Group and Enovos. It includes 23,415 solar panels and supports renewable energy production for about 2,500 households. The project integrates pasture farming elements.

Future Solar Projects

Luxembourg’s Self-Consumption Tender Projects

• Location: Various locations across Luxembourg
• Capacity: 46.3 MWp
• Details: In June 2023, Luxembourg announced its first solar self-consumption tender, supporting projects in three categories:
  • 30 kW to 200 kW: 5.37 MW
  • 200 kW to 500 kW: 8.24 MW
  • 500 kW to 5 MW: 32.7 MW

These projects will receive a total of €16.1 million in subsidies. Developers have 18 months to complete these projects, with the second phase of the tender planned to begin in July 2024.

Company Name: https://prosolar.lu/

Website: prosolar.lu

Products and Services:

• Photovoltaic Systems: Installation of complete photovoltaic systems.
• Solar Panels: Sales and installation of solar panels.
• Car Chargers: Installation of car charging systems.
• Heat Pumps: Provision and installation of heat pumps.
• Surveying Services: Ensuring structural, municipal, and legal requirements are met for solar panel installations.

Company Name: Letz Green Renewables

Website: letz-green-renewables.lu

Products and Services:

• Solar Panels: High-efficiency modules from brands such as JinkoSolar, Soluxtec, and Viessmann.
• Battery Storage: Systems to store solar power for later use.
• Wallbox: Charging units for electric cars using solar power.
• Monitoring Systems: Tools to track and monitor solar plant performance remotely.
• Consultation & Planning: Assessment and planning of customized photovoltaic systems.
• Installation: Delivery and installation of solar systems.
• Company Name: Voltmax SARL

Website: voltmax.lu

Products and Services:

• Solar Panels: Photovoltaic solutions and installations.
• Energy Storage: Systems for storing solar energy.
• Heating Systems: Includes heat pumps, air conditioning, and pellet boilers.
• Subsidy Assistance: Help with applying for government and communal subsidies.
• Consultation & Planning: Design and planning of photovoltaic installations.
• Installation Services: Comprehensive installation services for residential and commercial properties.
• Professional Services: Includes large electrical and service works.