FAQ

The provision relating to the super-reduced rate reduces the scope of application to the level of the type of building that will be equipped with solar panels, namely “on private housing, housing and building, public and others, used for activities of general interest, and in close proximity to these”.

As far as “private housing” is concerned, this is housing of which at least three quarters of the total surface area is reserved for living purposes. The same rule applies to housing and public buildings and others used for activities of general interest: at least three quarters of the total surface area must be reserved for these purposes.

A definition of this is provided in the grand-ducal regulation of 23 December 2022 amending: 1° the grand-ducal regulation amended on 21 December 1991 determining the limits and application conditions of the reduced, super-reduced and intermediate rates of value added tax; 2° […], and the following explication is provided by bulletin No 816 issued by the Registration Duties, Estates and VAT Authority: “private housing and buildings used by public authorities not subject to tax for activities carried out as such or used by those subject to tax for activities of general interest exempt from VAT without the right to deduct input tax (notably hospitals, schools, children’s nurseries, youth hostels and retirement homes)”. The provision of cultural services is added to the latest list.

The delivery and installation of photovoltaic solar panels close to housing or buildings referred to above does not interfere with the application for the super-reduced VAT rate of 3 % as long as the delivery and installation takes place on adjoining or separate properties but located close to private housing or housing and buildings, public and others, used for activities of general interest and as long as such photovoltaic solar panels are connected to the thermal and/or electrical network of the housing or buildings in question.

The grand-ducal regulation of 23 December 2022 amending: 1° the grand-ducal regulation amended on 21 December 1991 determining the limits and application conditions of the reduced, super-reduced and intermediate rates of value added tax; 2° […] defines in the context of the reduction of the VAT rate the “delivery and installation of solar panels” as follows: “work on a property consisting of the delivery of solar panels and their installation”.

As a result, all the parts necessary for this installation and its operation also come under the super-reduced rate, which implies the following parts of the photovoltaic solar panels: photovoltaic panels (or hybrid solar collectors), fixing rails, DC and AC electric cabling connected directly to the photovoltaic installation, inverter, electrical protection devices, bidirectional meter; and for the thermal solar panels: thermal solar collectors, fixing rails, insulated pipework, solar storage reservoir, calorimeter, peripheral equipment (power feed, regulation, heat exchangers); as well as, of course, the costs of installation.

For the photovoltaic solar panels, a storage installation (battery) is therefore not involved.

It is also important to note that the super-reduced rate only applies to such installation work on a solar power plant. Bulletin No 816 issued by the Registration Duties, Estates and VAT Authority defines this notion of “work on a property” as follows: “Therefore, there is reason for understanding this new provision not as the delivery of solar panels or the installation of such panels carried out separately, but as work on a property that consists of a delivery of solar panels with installation”.

Every outdoor or indoor car park constitutes a co-ownership lot. The owners will therefore be treated in the same way as any other co-owner who has a car park in the co-owned building, as regards both installation and charge distribution and a request for infrastructure subsidies.

In the case of rented spaces, installation requests for charging stations must be submitted through the owner of the space. However, the owner has every right to deny the tenant permission to install a charging station.
The subsidy application distinguishes between two scenarios:

1. At the tenant's request, the owner has a charging station installed. In this case, the station belongs to the owner. Moreover, it is the latter who must submit the application and who will receive the subsidy. The tenant must therefore first agree with the owner as to who will receive the subsidy, in part or in full.
2. If the tenant installs the charging station at their own expense, they can apply for the subsidy directly without going through the owner. If necessary, at the end of the lease, the tenant may be required to remove the station to restore the rented premises to their initial state.
    

Individual version:

Please note, at present, only natural persons can apply for a grant for a charging station. A joint application via the co-ownership (as a legal entity) is not currently possible.

1. Joint initiative of co-owners wishing to install one or more charging stations. One or more co-owners request the authorisation of the general assembly of the co-ownership management body to install – alone or together – one or more charging stations on an individual basis. (a*)
2. The general assembly takes a decision regarding installation of the charging stations and, in the event of a favourable vote, approves the installation. (The authorisation in question must be given to the co-owner(s) by an absolute majority, the decision must be taken by votes representing 501 thousandths or more of the co-ownership). (b*)
3. The co-ownership management body shall make sure that the installation complies with the decisions taken by the general assembly and that its subsequent use does not violate the co-ownership regulations.
4. The co-owner(s) in question are responsible, alone or jointly, for installation of the charging stations. (c*)
5. The service provider will send its invoices to the applicants, either to the individual co-owner, or to the group of co-owners concerned, as the work is completed. The co-owners concerned will pay the invoices without going through the accounts of the co-ownership, which shall not be affected. (d*)
6. The subsidy application for the installation of charging station infrastructure must be submitted either by each co-owner concerned individually and in their personal name, or by several co-owners jointly, or by the co-ownership management body – not in the name of the co-ownership but in the name of the individual co-owners concerned. (e*)
7. The Ministry of the Environment, Climate and Sustainable Development pays the aid to the co-owners in question. In the event that all individual co-owners wish to take advantage of charging stations and jointly build the charging infrastructure, it is recommended that the co-owners agree in writing on all aspects of this joint installation and on the distribution of the costs incurred in both installation and use.

*a) An authorisation from the general assembly is necessary except where the installation is to be made in a private area with a connection to an already private electric circuit that already serves this private parking space.
*b) In the event that the decision fails to garner an absolute majority, a new general meeting will be convened during which the decision will be adopted if it receives a simple majority (at least 50% + 1 of the votes available to the co-owners present or represented).
*c) A decision of the general assembly could also instruct the co-ownership management body to ensure the coordination of this installation by individual co-owners if it considers that this would be in the interest of the co-ownership.
*d) However, nothing prevents the general assembly from deciding to bear the costs of adapting the communal areas itself if it considers that this adaptation is justified to allow the creation of environmentally friendly energy infrastructure that other co-owners can join in the future.
*e) All invoices and receipts relating thereto must be attached with the grant application. If necessary, the decision of the general assembly authorising the installation of the charging station(s) can be added to the application.

In the event that all individual co-owners wish to take advantage of charging stations and jointly build the charging infrastructure, it is recommended that the co-owners agree in writing on all aspects of this joint installation and on the distribution of the costs incurred in both installation and use.

Should all of the co-owners so wish, it is simpler for the co-ownership to take care of installation of the infrastructure directly, through the co-ownership management body. In this case, the co-ownership management body should be mandated for this purpose at the general meeting authorising the co-owners to install the infrastructure in question. For the co-owners to be able to receive the State grant, it is necessary, however, that the various stations remain private and that the related invoices be drawn up in the name of each co-owner.

In case of refusal by the general assembly, the owner(s) who made the request may refer the matter to the district court of the place in which the building is located, sitting in civil matters. The latter may authorise them to carry out this work if it is not likely to harm the solidity or aesthetics of the building or disturb the other co-owners.

• A smart charging station offers users additional functionalities, e.g. self-consumption of own photovoltaic electricity.
• According to the Grand Ducal regulation, this means a charging station equipped with an integrated or external interface compatible with the Open Charge Point Protocol (OCPP) standard, Version 1.6 or higher.
   

The Open Charge Point Protocol (OCPP) is an open, manufacturer-independent standard for communication between charging stations and a central management system. This makes it possible to integrate any type or model of charging station into an intelligent charge management system, with Version 1.6 offering users more flexibility and functionality.

• A system that manages the set of charging stations behind a single connection point, so as to limit their simultaneous power draw to a value that cannot exceed the capacity made available by the grid operator at the connection point.
• This system must be able to integrate a number of charging stations equivalent to the number of parking spaces in the building and must ensure the non-discriminatory connection of future users. 
   

In the event of a change of owner or tenant of a site at which a private charging station has been subsidised, financial aid may be granted for a new charging station installed to replace a dismantled charging station.