2024 was a milestone year for Luxembourg’s renewable energy efforts, with a record 8,000 new solar panel systems installed across the Grand Duchy – nearly a third of all installations in the country.
Homeowners have two options when installing solar panels: they can use the energy for personal consumption, lowering their electricity bills, or install extra panels to produce surplus electricity. Any surplus is then sold to energy companies and fed back into the grid. However, according to Georges Reding, renewable energy manager at the Economy Ministry, 99% of people opt for self-consumption.
In conversation with RTL, Reding elaborated on the government’s different climate bonus schemes, with two main subsidy programmes at the disposal of households depending on the level of energy production. The fixed tariff remains constant for 15 years, allowing homeowners to calculate when the system will be practically paid off. With the subsidy option (where self-consumption is prioritised), the feed-in price varies depending on demand in the electricity market.
Energy prices currently vary from 3–4 cents per kilowatt hour during summer and around 11 cents in winter.
Meanwhile, Luxembourg’s eight energy companies are free to set their prices. However, there is no obligation for households to sell their energy back to the same company from which they buy.
