Extension Granted for Electric Car and Solar Panel Purchases

Luxembourg - December 15, 2023

Luc Frieden has announced an extension of temporary environmental measures until June 30, 2024, offering a few more months of support.
The envisaged aids for green housing will be extended. Luc Frieden, the new Prime Minister, declared that Climate Bonus incentives designed to encourage solar panel installations and the replacement of old heating systems with heat pumps will remain in place until June 30, 2024. Social partners notably decided to raise the electricity threshold subject to photovoltaic income tax.
These measures, negotiated in the latest tripartite talks in April, were due to expire at the end of December 2023. This extension "should give the new government an opportunity to reconsider them or even introduce new social criteria." The aim remains to "encourage investment" in energy transition, but authorities are reviewing the execution of these measures in a "more targeted manner."
Support for the purchase of electric cars and bicycles, as well as the installation of charging stations, initially planned until March, will also be extended until the end of June 2024. Luc Frieden summarizes that all these green criteria "must be reassessed in light of the experiences gained."