Feeding the electricity you produce into the grid allows you to make your installation profitable and earn an income. We will explain in detail the different elements to be aware of if you choose this option.
It is now very easy to produce your own electricity by setting up a photovoltaic system. This has several advantages: it allows you to contribute to the ecological transition by making available a completely renewable energy, and it also gives you the possibility to earn money, by reinjecting the energy produced into the grid.
Full grid feed-in
(installation < 30 kWp)
How it works
You inject your entire production into the grid.
Subsidy
20% investment subsidy (max. 500€ per kWp)
You have two options depending on the choice of tariff model. Remember to make your choice before connecting the installation to the grid.
Option 1 guaranteed feed-in tariff*
- Guaranteed feed-in tariff* by Grand-Ducal regulation of 12 April 2019
- Fixed tariff for 15 years from the day the installation is operational
What you need to do
- Submit your application to the grid operator
- Sign a contract for the guaranteed feed-in tariff with the grid operator
Option 2 Flexible feed-in tariff**
- Flexible feed-in tariff** by an energy supplier
- Flexible tariff with variable contract duration
What you need to do
- Submit your application to the grid operator
- Sign a contract for the guaranteed feed-in tariff with an energy provider
* State-guaranteed feed-in tariff: This feed-in tariff (for the residual or total electricity production fed into the grid) is a tariff regulated by the Grand-Ducal regulation of 12 April 2019 in the framework of the Compensation Mechanism. This tariff is fixed and guaranteed for a period of 15 years and depends on the date of activation of the electricity production installation.
** Flexible feed-in tariff with a selected supplier: This feed-in tariff (for the residual or total electricity production fed into the grid) is a flexible tariff offered by a supplier of your choice, often based on variable wholesale energy market prices. The duration of the contract depends on the agreement with your selected supplier.
Klimabonus” investment subsidy for your installation
Producing your own electricity is made even easier by the Klimabonus programme, which provides a range of investment grants for this type of project.
The installation of photovoltaic panels with a view to feeding the electricity produced back into the grid can also be made easier by obtaining investment aid. This aid can amount to 20% of the total investment, with a ceiling of 500 €/KWp.
Finally, note that if you choose to inject all the electricity produced into the grid, you can always change your mind and opt for self-consumption. However, a formal request must first be made to your grid operator at the appropriate time.
The application forms for the financial aid will be available on guichet.lu. The aid can be applied for after the installation has been completed
Good to know
To benefit from this investment aid, the peak electrical power of the installation must not exceed 30 kWp.
If your installation is larger than 30 kWp, you will be taxed on the income from the sale of your electricity.
Choosing your tariff model for the remuneration of the total energy feed into the grid
In addition to these practical elements, you will also have to choose between a guaranteed or flexible feed-in tariff model.
Option 1
By opting for the guaranteed feed-in tariff model, you benefit from a state-guaranteed feed-in tariff for a period of 15 years. You must conclude a feed-in contract with your grid operator.
Option 2
If you opt for the flexible feed-in tariff model, you renounce the guaranteed feed-in tariff for the entire lifespan of the installation. You must conclude a feed-in contract with your energy supplier. The remuneration is a percentage of the wholesale market price, which varies monthly.
Enovos offers two variable injection tariff options based on market prices based on market prices: dynamic solar and MW Solar. These tariffs are multiplied by a correction factor that accounts for forecasting risks and balancing energy costs.
If you are interested in a tailor-made offer based on market prices, waiving the state-guaranteed injection tariffs, please contact us at centrale.production@enovos.eu, specifying and adding the following documents to your request
- Connection contract for the production facility from the grid operator
- Grid usage contract from the grid operator
Don’t forget your tax obligations
As an electricity producer, you can choose to be subject to VAT (and thus reclaim VAT on certain operating expenses) or benefit from the VAT exemption scheme, provided that your annual turnover does not exceed €50,000. However, a 10 per cent tolerance is provided for, allowing you to remain under this scheme up to a turnover of €55,000 before losing eligibility during the year.
In both cases, you must register for VAT and file an annual VAT return, via MyGuichet for example.
Profits from the production of photovoltaic energy can also be taxed. However, this depends on your installation and the use made of the energy produced (self-consumption or total injection).
- There is no taxation:
- if you inject 100% of the electricity produced and you have an installation of less than 30 kWp;
- if you are self-consuming without injecting the excess energy produced into the grid.
- A tax is applied :
- if you inject 100% of the electricity produced or if you have an installation of more than 30 kWp;
- if you are self-consuming and inject the excess energy, a tax deduction is provided for depending on the level of self-consumption.
As a producer-seller of electricity, you can choose whether or not to be subject to VAT. Please note that according to L.I.R. circular no. 14/2 of June 2023, from January 2023, income from the sale of electricity generated by a photovoltaic installation with a capacity of 30 kWp or less, either individually or collectively, will not be subject to taxation. Above this limit, the operator is required to file an income tax return, and will be subject to taxation.