FAQ

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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.

Yes, it is applied directly to the invoice. Please note that this is worth, under the terms of 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° […], not only for the photovoltaic (or hybrid) solar panels, but also for the thermal solar panels. “The thermal functioning solar panels installed after 31 December 2022” no longer come under the scope of application of the “housing VAT”.

The necessary explanations are provided by bulletin No 812 issued by the Registration Duties, Estates and VAT Authority. This bulletin deals with the temporary reduction of the different rates, but in the end, the reduction of VAT from 17 % to 3 % for the solar panels is to be considered alike.
By way of additional information, here are some examples below.

Deliveries of goods, other than new modes of transport, and provisions of services

There is reason to distinguish between deliveries and services performed in the B2B/B2G sector and those made in the B2C sector.

A. For deliveries of goods/provisions of services relating to B2B (Business to Business, i.e. the customer is subject to VAT) and B2G (Business to Government, i.e. the customer is a legal person not subject to VAT), there is an obligation to issue an invoice for the delivery / service performed as well as for the instalment payments.

Attention: the customer to whom the work is invoiced that can benefit from the super-reduced VAT rate as part of the said “housing VAT”  is, even if this relationship appears to be B2C (business to consumer), for the purposes of the “housing VAT” only provisions considered as being subject to VAT.

If a delivery is made, the applicable rate of VAT is that in force:

• on the 15th day of the month following the delivery of goods / provision of service;
• on the day when the invoice is issued, if it is issued before this date.

If instalments are paid, the applicable rate of VAT is that in force:

• on the day the instalment paid is received;
• on the day when the invoice is issued, if it is issued before the instalment is received.

As a result, the following cases may apply:

• the goods are delivered / the service is performed in 2022 and invoiced in 2022: rate of 17 %
• the goods are delivered / the service is performed in December 2022 and invoiced in 2023: rate applicable in 2023 up to 15 January, thus of 3 %
• the goods are delivered / the service is performed in 2023 and invoiced in 2023: rate of 3 %
• an instalment for the delivery / service not yet carried out is invoiced in 2022 and paid in 2022: rate of 17 %
• an instalment for the delivery / service not yet carried out is invoiced in December 2022 and paid in 2023: rate of 17 % (date of the invoice)
• an instalment for the delivery / service not yet carried out is paid in 2022 and invoiced in 2023: rate of 17 % (date of receipt)
• an instalment for the delivery / service not yet carried out is invoiced in 2023 and paid in 2023: rate of 3 %

B. For the deliveries and services performed in the B2C sector (business to consumer, the customer is neither subject to VAT, nor a non-taxable legal person), there is no obligation to issue an invoice either for the delivery / service itself (only exception, certain sales called “distance sales”, or for an instalment paid before the delivery / service has been performed.

If a delivery / service is performed, the applicable rate of VAT is that in force on the day when the delivery / service is performed (completed) (operative event).
If instalments are paid, the applicable rate of VAT is that in force on the day the instalment paid is received.

As a result, the following cases may apply:

• the delivery / service is performed in 2022 (and invoiced  in 2022): rate of 17 %
• the delivery / service is performed in December 2022 (and invoiced² in 2023): rate of 17 %
• the delivery / service is performed in 2023 (and invoiced in 2023): rate of 3 %
• an instalment for the delivery / service not yet carried out is (invoiced² in 2022 and) paid in 2022: rate of 17 %
• an instalment for the delivery / service not yet carried out is (invoiced² in December 2022 and) paid in 2023: rate of 3 % (date of receipt)
• an instalment for the delivery / service not yet carried out is paid in 2022 (and invoiced² in 2023): rate of 17 % (date of receipt)
• an instalment for the delivery / service not yet carried out is (invoiced² in 2023 and) paid in 2023: rate of 3 %.

Taking into account the instalment(s) when delivering goods or providing services

As far as taking into account the instalment when solar panels are installed:

A simple accounting reversal of the instalment has no influence on the rate that was applicable at the time when it was received or invoiced (according to the cases listed above). The only way of “reversing” the VAT due because of an invoiced/received instalment would be to reimburse the amount received to the customer.

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^{1 Annex B, points 21° and 22°, of the law amended on 12 February 1979 regarding value added tax and the grand-ducal regulation of 30 July 2002 regarding the application of value added tax on the allocation of housing for use as the principal dwelling and to original and renovation work carried out in the interest of the affected housing for use as the principal dwelling and fixing the conditions and execution methods relating to this}

^{2 Commercial invoice, without impact relating to VAT.}