Luxembourg bets on PV: high subsidies make self-consumption particularly attractive
Luxembourg is continuing to strongly promote the expansion of photovoltaics. With the public funding program Klimabonus, the Grand Duchy specifically supports households that want to switch to solar electricity. Self-consumption of photovoltaic power is particularly attractive, as it currently benefits from generous subsidies.
For homeowners, this means that solar electricity generated and consumed directly in the building can significantly reduce energy costs while also benefiting from attractive public funding.
Up to 50% subsidy for PV self-consumption
As part of the Klimabonus program, the state provides subsidies for photovoltaic systems installed on residential buildings. For systems designed for self-consumption, the current conditions are particularly favorable:
up to 50% of investment costs
maximum €1,250 per kWp of installed capacity
valid for photovoltaic systems up to 30 kWp on residential buildings
In principle, the Luxembourg subsidy model offers two options.
System operators can either choose an investment subsidy focused on self-consumption, combined with a variable feed-in tariff for surplus electricity. Alternatively, they can waive part of the investment subsidy in order to receive a guaranteed feed-in tariff for 15 years.
From both an economic and ecological perspective, however, it is generally more advantageous to consume as much of the generated solar electricity as possible within the household, rather than feeding most of it into the grid.
Good to know
Under certain transitional provisions, the subsidy can even reach up to 62.5% of the investment costs.
Since the beginning of 2026, the subsidy procedure has also been simplified. Thanks to a new pre-financing model, the state subsidy is directly deducted from the installation invoice. The installer submits the funding application on behalf of the customer and then receives reimbursement from the state. This significantly reduces the initial investment required.
How to increase PV self-consumption?
If the investment subsidy is chosen and the long-term fixed feed-in tariff is waived, it is naturally in the photovoltaic system owner’s interest to maximize self-consumption.
In addition to battery storage systems, a particularly effective solution is to use photovoltaic electricity to generate heat, for example for domestic hot water or to support space heating.
This is precisely where my-PV solutions come into play.
With PV-heat technology, homeowners can easily use excess photovoltaic energy to produce hot water or support heating systems with or without a battery storage system. With an 8 kWp photovoltaic system, self-consumption can increase to up to 70%.
Products such as AC•THOR or AC•THOR 9s or AC ELWA 2 continuously adjust their output to the available solar power and use it to heat water in electric water heaters or buffer tanks. Installation and retrofitting are straightforward.
Thanks to compatibility with many inverters and energy management systems (EMS), additional meters – such as the my-PV WiFi Meter – are often not required. This can reduce installation costs by up to €300. Overall, my-PV solutions are compatible with around 80% of common inverter and EMS brands and can therefore be easily integrated into both new and existing systems.
In addition, my-PV devices can easily be combined with battery storage systems, further increasing self-consumption and enabling even more efficient use of solar electricity.
Across the Benelux region, homeowners are increasingly discovering how effectively photovoltaic electricity can be used directly for heating. Feedback from customers shows that combining photovoltaics with PV-Heat solutions is not only easy to implement, but also significantly increases self-consumption while reducing energy costs. With the attractive subsidies currently available in Luxembourg, the moment to make the most of solar power at home has never been better.
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