Prime Minister Luc Frieden, in the first press briefing following a Government Council meeting, announced the extension of a range of climate measures introduced by the previous government, initially set to expire in December.

The extension encompasses support for solar systems, heat pumps, and electric cars, signalling the continuity of climate policies under the new CSV-DP coalition. Our colleagues at RTL.lu delved into the details of the proffered measures.

One significant aspect is the continuation of "top-up" aid, now extended by six months. This supplementary aid is added to the standard "climate bonus" aids and was introduced as part of the Tripartite Agreement ("Solidarity Pact") during the previous government, serving as a crisis measure. At that time, concerns about energy prices and potential disruptions in the gas supply from Russia prompted discussions on energy conservation and increased production of renewable electricity. This "top-up" aid aims to incentivise both energy savings and the generation of renewable energy, contributing to reduced dependence on external sources.

Prime Minister Luc Frieden's announcement is meant to ensure predictability and planning security for citizens and businesses. Over the next six months, the government will evaluate the efficiency of the current aid system, considering alternative approaches that may include more spread out, staggered aid distribution.

What does this mean in figures?

The extended "top-up" aids include a 20% increase in support for heat pumps, a 25% boost for solar systems, and a similar 25% increase for renovation work (including windows). Renovation subsidies are calculated per square metre, accounting for the type and method of insulation.

In concrete terms, when combining all subsidies, individuals can receive up to 62.5% of the cost of a photovoltaic system, provided they sign a quote by the end of June 2024. Additionally, those replacing their old heating systems with sustainable alternatives will receive a 50% subsidy from the state until the end of June.

The Climate Agency has provided a bespoke tool on its website to help residents understand and estimate the potential aid available to them. Individuals can also seek information directly from agency advisors.

The extension also encompasses subsidies for electric cars and bicycles, originally set to expire at the end of March - now extended until the end of June.

Read more about 'State aid for eco-friendly initiatives extended until end of June'.