Continuation and partial reform of the "Klimabonus Wunnen" and "Klimabonus Mobilitéit" financial aid schemes

On 5 June 2024, the Government Council adopted guidelines for the continuation and partial reform of the "Klimabonus Wunnen" and "Klimabonus Mobilitéit" financial aid schemes. On 11 June 2024, the Prime Minister officially announced the main points of this reform in his State of the Nation address. On 14 June 2024, the Minister of the Environment, Climate and Biodiversity, Serge Wilmes, gave details of the "Klimabonus Wunnen" and "Klimabonus Mobilitéit" financial aid schemes at a press conference. 

©MECB Press conference
Press conference

"Klimabonus Wunnen"

"The 'Klimabonus Wunnen' financial aid scheme is a significant step towards a more sustainable future. By promoting the rational use of energy and renewable energies in housing, we are not only helping to protect our environment, but also reducing energy costs for our citizens. This commitment strengthens our determination to promote a fair energy transition and build resilient communities," emphasises Minister Serge Wilmes.

The "Klimabonus Wunnen" scheme currently in force will be extended for an initial period of three months under unchanged conditions, as follows:

  1. Energy renovation measures: 25% bonus maintained. For renovation measures, including the installation of controlled mechanical ventilation, the "basic scheme + 25% bonus" financial aid will be maintained for applications for an agreement in principle submitted by 31 December 2025 at the latest.
  2. Heat pumps and wood-fired boilers: the bonus will be maintained if an existing fossil fuel boiler is replaced. The "replacement bonus" will continue to be raised to 50% when an existing fossil-fuel boiler or electric heating system is replaced by a heat pump, hybrid heat pump or wood-fired boiler.
  3. Photovoltaic installations: adaptation of the financial aid for installations operated in self-consumption mode after a 3-month transition period. The 25% supplement on the financial aid granted for solar photovoltaic installations operated in self-consumption mode or as part of an energy community is extended for a transitional period of 3 months (orders placed no later than 30 September 2024), maintaining the level of aid at 62.5% of the effective costs, with a ceiling of €1,562.5 per kW peak. From 1 October 2024, the current scheme for energy efficiency measures, heat pumps and wood-fired boilers will be maintained, while financial support for photovoltaic modules will be reduced to 50% of the actual costs for installations ordered from 1 October 2024, with a ceiling of €1,250 per kWhp.

"Klimabonus Mobilitéit"

Promoting electric mobility is a key element of the Integrated National Energy and Climate Plan (PNEC) for the period 2021-2030.

The following provisions will apply:

  1. Transition period until the end of September 2024. The "Klimabonus Mobilitéit" scheme currently in force will be extended for three months under unchanged conditions. This extension applies to vehicles purchased no later than 30 September 2024.
  2. Adaptations from 1 October 2024

a. Amounts of aid

The amounts of aid will be staggered as follows for vehicles ordered from 1 October 2024:

Aid of €6,000 for:

  •  100% electric cars, provided their electrical energy consumption does not exceed 160 Wh/km (equivalent to 16 kWh/100 km),
  • 100% electric cars with seven or more seats, provided that the applicant is part of a household of at least five people, to take account of the needs of large families,
  • 100% electric utility vans and hydrogen fuel cell cars.

A bonus of €3,000 for 100% electric cars when their electrical energy consumption is between 161 Wh/km and 180 Wh/km. This threshold is raised to 200 Wh/km, provided that the maximum net power of the car's propulsion system is less than or equal to 150 kilowatts.

Other electric cars, i.e. those whose electrical energy consumption exceeds 200 Wh/km (or 180 Wh/km when their power exceeds 150 kilowatts) will no longer be covered by the financial aid scheme.

Financial support for other 100% electric vehicles (quadricycles, motorbikes and mopeds) will be maintained at the same level (50% of the cost of the vehicle excluding VAT, but not exceeding €1,000).

Subsidies for pedal-assist bicycles and cycles (50% of the cost excluding VAT, up to a maximum of €600) will be reserved for people who are part of a household receiving the cost-of-living allowance or the energy bonus at the time of purchase of the pedal-assist bicycle or cycle.

New financial aid of 50% of the cost (excluding VAT) of the vehicle, up to a maximum of €1,000, has been introduced for cycles and pedal-assist cycles designed to carry, behind and/or in front of the driver, loads of people and/or goods that are heavier than on a conventional bicycle (cargo bike).

This new financial aid scheme applies to vehicles purchased between 1 October 2024 and 30 June 2026.

b. Increase in minimum holding period

At present, the bonus is linked to the vehicle being held for a minimum of 12 months. From 1 October 2024, this period will be extended to 36 months, in order to prevent the premature export of vehicles that have benefited from subsidies in Luxembourg. Extending the minimum ownership period in this way will help to stimulate the emergence of a second-hand market for 100% electric cars.

c. Introduction of financial aid for used electric cars

With the same aim of encouraging electric cars to remain in the national fleet for longer, a new financial aid of €1,500 has been introduced for used cars that are at least three years old, provided that the recipient of the aid owns the car for at least two more years and does not belong to the same household as the seller of the vehicle.

Useful information:

The detailed provisions of the Klimabonus financial aid scheme, including an aid simulator, are available at www.klimabonus.lu.

Application forms for financial assistance are available at www.guichet.lu.

Press release from the Ministry of the Environment, Climate and Biodiversity

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