Energy retrofitting is any work that improves a house or flat’s energy efficiency.
The aim of this type of renovation is to improve comfort, while minimising energy consumption (gas, fuel oil, electricity) and greenhouse gas emissions. It is an integral part of Luxembourg’s energy and ecological transition. For a sustainable home.
What are the benefits of sustainable energy?
There are plenty of good reasons to make your home eco-friendly. It:
- Reduces your greenhouse gas emissions and energy consumption
- Improves the energy performance certificate (EPC) of your home and its sale or rental value
- Creates more comfortable living conditions
- Reduces your heating bill
- Reduces your dependence on fossil fuels through the use of sustainable energy
What financing solutions are available?
Renovation work tends to be costly. BGL BNP Paribas is here to guide you towards a more sustainable world.
To finance the necessary works, you can apply for a personal loan, granted based on an analysis of your borrowing capacity. A personal loan of up to EUR 75,000 is repayable over 12 to 60 months.
For works that improve the energy efficiency and increase the value of your property, you may qualify for a mortgage. Monthly repayments will be lower and spread over a longer period. Contact your BGL BNP Paribas advisor to learn more.
What bonuses exist for energy retrofitting?
There are a range of energy retrofitting subsidies available to help finance your renovation projects in Luxembourg.
Before you jump in, you’ll need to make an appointment with a certified energy advisor, to gain access to PRIMe House subsidies. Together, you’ll identify the works to be completed first and the various stages of your project.
Energy advice subsidy
Please note that a subsidy for energy advice is granted by the Luxembourg Environment Agency. Financial support for sustainable energy renovation works:
- EUR 1,000 for a single-family home ;
- EUR 1,200 for a block comprising two apartments + EUR 25 for each additional apartment. The total amount is capped at EUR 1,600.
Subsidy for improved energy efficiency
The Luxembourg Environment Agency has created the “PRIMe House” subsidy for energy efficiency projects that:
- promote housing sustainability ;
- include installation of technical facilities using renewable energy sources
For practical details on how to submit an application, please refer to Guichet.lu.
Good to know
PRIMe House subsidies can only be granted once for a project and only for residential buildings located in Luxembourg.
Renewable energy source incentive scheme
If you generate your own electricity using solar, wind, hydroelectric, biogas or biomass technologies, you might qualify for a government incentive bonus.
The energy generated must be funnelled back into the network of a national operator. This scheme takes the form of a subsidy for each kWh of electricity generated, which is added to the market price paid by the operator.
Reduced VAT for energy retrofitting
The Luxembourg government applies a reduced rate of 3% to renovations of properties intended as a primary place of residence. This tax concession cannot exceed EUR 50,000 per home.
Please note that not all works benefit from the reduced rate. For example, fitted kitchens, the installation of technical equipment such as alarms, interior blinds and curtains, and landscaping are not included.
Everything you need to know about energy retrofitting subsidies
Thoroughly research the various government subsidies before you get started, especially if this assistance will form part of your renovation budget.
Some councils offer additional financial grants. Don’t hesitate to inquire.
(1) For a loan of EUR 15,000 repayable over 48 months at a fixed interest rate of 1.81% per annum, you would pay 48 instalments of EUR 324.19 (excluding optional insurance). No application fees. APR Fixed annual percentage rate: 1.85% per annum (subject to paying your salary into an “Essentiel” account held with our bank). Total amount owed by the borrower: EUR 15,569.33.
The hypothetical example is provided for information purposes only and cannot be considered a loan offer and/or approval. The bank is not liable for this example or for any decisions made based on this example.
Offer subject to terms and conditions and approval of your application by the bank.
A personal loan is a hassle-free option for financing planned or unexpected expenses.
Credit protection insurance
Do you want to take out a loan to finance a property? Discover the advantages of credit protection insurance.