FAQ

You can find all the details about financing your photovoltaic installation and current subsidy programmes on our subsidy simulator.

A small wind turbine emits very little noise that could disturb its owners or neighbours. While small wind turbines do generate some noise of their own, it is drowned out by the increasingly louder wind noise as the wind speed grows.

Additionally, turbines installed on house roofs can produce vibrations that may be transmitted to the building structure and thereby cause disruptive noises inside.

Under a low-lying sun, the rotating rotors of wind turbines can also create light reflections that may disturb neighbours, particularly if the shadow falls on a window or a terrace, for example.

Yes, the standard tariff for wind turbines also applies to mini-wind turbines, which is approximately 0.09 €/kWh for the year 2023.

A permit from the grid operator is not necessary as long as the power of the wind turbine is less than 800 W.

As the construction of a wind turbine constitutes a structural modification, you should in any case enquire with your municipality as to whether a building permit is necessary, especially if it is a free-standing turbine. For freestanding installations, you should also find out beforehand whether your desired installation site lies on building land or, in some circumstances, in a green zone. In these cases, a permit from the Ministry of the Environment is mandatory.

In addition, it is important to ensure that the wind turbine does not exceed the maximum permissible construction height prescribed by the municipality, insofar as no exceptions are provided for technical devices.

Current rooftop systems generate electricity amounting to a small two-digit euro sum per year. Given the substantial acquisition costs, such wind turbines tend to be less cost-effective.

The potential of wind turbines of any size depends primarily on the location and the predominant wind conditions there, because the energy generation increases exponentially with the speed of the wind: Double the wind speed brings eight times the yield - half only one-eighth. The height and diameter of the wind turbine also play a role, because for every metre that a wind turbine is built higher, the electricity yield increases by 1 percent, and by doubling the blade length, the yield increases fourfold (four times the "harvest area").

Mini wind turbines work on the same principle, but on a much smaller scale. After all, if the yield quadruples when the blade length is doubled, it also drops fourfold when the blade length is halved.

A small wind turbine only makes sense if the location is perfectly suitable. To find out for sure, you can have a wind measurement carried out beforehand to determine whether your location is suitable. However, in most cases this is not advisable because the costs for the wind measurement are not proportionate to the costs for the turbine and the expected energy yield.

A micro or small wind turbine fundamentally works the same way as a large wind turbine, by converting the energy of the wind into electricity. It does this mainly by means of a rotor, which is propelled when there is sufficient wind and transforms this kinetic energy into direct current with the help of a generator. Next, the generated direct current is converted into alternating current using an inverter so that it can be used at home or fed into the grid.

With an output of up to 1.5 kW, one speaks of micro wind turbines, which are thus considered more of a hobby installation. Small wind turbines have an output of 1.5 to 15 kW and can be used as power generators in private homes, small businesses or the agricultural sector, either for self-consumption or to feed energy into the grid.

Example 1:

Assumptions

A taxpayer, widowed, is the owner of a building, situated in Luxembourg and used for rental housing.

The property is part of taxpayer’s private assets and has the following characteristics:

• date of purchase: 2 January, 2005
• land purchase price: €100,000
• purchase price of the construction: €500,000
• completion date of the energy efficiency improvement measure: 15 March, 2021
• cost of the energy efficiency improvement measure (after deduction of the financial support referred to in article 4 of the law amended on 23 December, 2016): €50,000

Calculation of depreciation

The depreciation on the building for the 2022 taxation year is calculated as follows:

• 2% x 500,000 = €10,000

• 6% x 50,000 = €3,000
  
  ➔ Total depreciation for 2022 of €13,000.

Conclusion
The taxpayer thus realises a net income under article 10, number 7 L.I.R. taxable in the Grand Duchy of Luxembourg and determined by taking into account normal depreciation of 2% for the original construction and accelerated depreciation of 6% pursuant to article 32 ter, paragraph 3 L.I.R. owing to an energy efficiency improvement measure completed at least 9 years previously at 01/01/2022 on a property used for rental housing.

Example 2:

Assumptions

A taxpayer, single, is the owner of a building, situated in Luxembourg and used for rental housing.
The property is part of taxpayer’s private assets and has the following characteristics:

• date of completion: 30 June, 1980
• date of purchase: 1 July, 2000
• land purchase price: €50,000
• purchase price of the construction: €300,000

Renovation work on this building is carried out during 2021:

• date of completion of the work: 31 December, 2021
• costs of investment: €200,000.

The costs of investment are broken down as follows:

• cost of investment relating to a sustainable energy efficiency improvement measure (after deduction of the financial support referred to in article 4 of the law amended on 23 December, 2016): €50,000
• costs of investment not relating to a sustainable energy efficiency improvement measure: €150,000.
   

Calculation of depreciation

The depreciation on the building for the 2022 taxation year is calculated as follows:

• (2% x 300,000) + (4% x 150,000) + (6% x 50,000)
  
  ➔ Total depreciation for 2022 of €15,000.

Conclusion
The taxpayer thus realises a net income under article 10, number 7 L.I.R. taxable in the Grand Duchy of Luxembourg and determined by taking into account normal depreciation of 2% for the original construction, accelerated depreciation of 4% for the renovation not linked to an improvement of the building’s energy efficiency and accelerated depreciation of 6% pursuant to article 32 ter, paragraph 3 L.I.R. owing to an energy efficiency improvement measure completed at least 9 years previously at 01/01/2022 on a property used for rental housing.

Example 3 :

Assumptions

A taxpayer, married, is the owner of a building, situated in the municipality of Rédange-sur-Attert and used for rental housing.

The property is part of the private assets belonging to the taxpayer and his spouse and has the following characteristics:

• date of completion: 30 June, 1970
• date of purchase: 1 July, 1998
• land purchase price: €30.000
• purchase price of the construction: €200.000

Renovation work on this building is carried out during 2010:

• date of completion of the work: 16 July, 2010
• costs of investment: €80,000.

The costs of investment are broken down as follows:

• costs of investment relating to a sustainable energy efficiency improvement measure: €60.000
• costs of investment not relating to a sustainable energy efficiency improvement measure: €20,000.

Calculation of depreciation

The depreciation on the building for the 2022 taxation year is calculated as follows:

• 2% x 280,000
  
  ➔ Total depreciation for 2022 of €5,600.

Conclusion

The taxpayer thus realises a net income under article 10, number 7 L.I.R. taxable in the Grand Duchy of Luxembourg and determined by taking into account normal depreciation of 2% for the original construction and the renovation work carried out in the course of 2010. The taxpayer and his spouse unfortunately are not able to benefit from the accelerated rate of depreciation of 6% on the renovation work relating to the improvement of the energy efficiency of the building given the condition of 9 years which cannot be fulfilled in this case.

If your costs relating to the housing in question are eligible for accelerated depreciation, you must state and fill out the corresponding depreciation schedule when you prepare your next income tax return. Your request must be accompanied by a tax balance sheet and the amount of depreciation not deducted.

If, as a taxpayer in receipt of a financial support for energy renovation, you receive authorization from the relevant ministry after the tax year for which you would have been entitled to accelerated depreciation, there are 2 possible scenarios:

If the financial assistance has been granted and taxation has not yet been carried out, you can submit an amending tax return or file a request for adjustment, adding the certificate for the financial support granted (even within three months of taxation).

On the other hand, if financial assistance has been granted and taxation has become definitive (i.e. after expiry of the three-month complaint period), the relevant tax office can no longer accept an amending tax return or request for adjustment (with the certificate for financial assistance in support).