Luxembourg suspends payments to electric car owners

A legal vacuum has arisen in Luxembourg regarding state subsidies for private electric vehicle charging stations. The previous support scheme, which allowed for reimbursement of up to 50% of the costs of installing home ‘wallbox’ units, officially ended on 31 December 2025. At present, property owners installing such equipment have no direct legal basis for receiving immediate payments.

The current situation stands in stark contrast to the government’s policy of promoting electric mobility and ensuring energy independence, which has become a priority against the backdrop of the conflict in Iran and the volatility of fossil fuel prices. The delay was caused by the lengthy process of reviewing Bill No. 8577. The bill was submitted for consideration back in July last year, but the State Council only issued its opinion last week. The bill now awaits approval by the relevant parliamentary committee on the environment.

The Department for the Environment assures the public that the new rule will apply retrospectively and cover all applications submitted from 1 January 2026. However, potential applicants should bear in mind that the actual transfer of funds will be delayed by several months until the law comes into full effect. The aim of the new initiative is to simplify the procedures for installing charging points, particularly for residents of apartment blocks.

Meanwhile, the Klimabonus Wunnen scheme, which governs subsidies for energy-efficient housing renovations and the installation of heat pumps, is also on hold. Unlike these areas, the photovoltaic systems sector has not suffered from bureaucratic delays: a separate piece of legislation has already ensured uninterrupted funding for solar panels since the start of this year.