Craft Industry
ManufacturingTo make this measure more effective and tailored to the specific context of your company, we recommend that you first perform an overall analysis of your energy situation.
In order to protect personnel from exposure to solvents and to eliminate their accumulation, thereby reducing the risk of explosion, the air inside the paint booth is filtered and extracted before being discharged into the atmosphere. The air released into the atmosphere is replaced by fresh air drawn from outside. This air is then heated and use as renewal air in the paint booth.
The measure aims to install a plate heat exchanger in the hot air extraction circuit of the paint booth to preheat the renewal air and will significantly reduce the energy consumption associated with heating this air.
The measure can lead to a substantial reduction in heating consumption and therefore also reduce the associated greenhouse gas emissions. The installation of this technological innovation requires a production shutdown for implementation and would entail a medium-to long-term return on investment.
Installing a heat recovery unit with a plate heat exchanger will generate significant financial savings, mainly by reducing heating consumption through the recovery of heat from extracted air in order to warm the incoming fresh air.
If heating is provided by a fuel combustion system, this measure can help reduce greenhouse gas emissions.
The air renewal flow rate can be controlled and managed as needed.s.
Please note: any application for government or non-government subsidies must comply with the “incentive effect”, subject to compliance with the subsidy conditions.
To ensure that the incentive effect of the aid is respected, no binding commitments may be made (acceptance of a quote; advance)
Aid for environmental protection
The law of 8 December 2025 on the renewal of the aid scheme for environmental and climate protection provides for the granting of investment aid to SMEs and large companies established in Luxembourg, with a business licence, and carrying out projects that contribute to environmental or climate protection.
This aid supports investments aimed at improving energy efficiency outside buildings. It is intended for initiatives that either reduce energy consumption by at least 20% or achieve energy savings of at least 250 MWh per year.
The following maximum rates apply:
| Activity | Company size | ||
|---|---|---|---|
| Small | Medium | Large | |
| Energy efficiency outside buildings | 25 % | 20 % | 15 % |
When equipment is added to an existing installation and there is no counterfactual investment that is less environmentally friendly, the aid rate shown in the table above is doubled.
SMEs may receive aid upon request if they meet the conditions set out in Article 7 of this law, provided that the aid is less than €100,000 and more than €50,000.
Large enterprises, as well as SMEs, will also be able to participate in regular calls for projects, which will be announced below when they become available.
The General Directorate – State Aid and Company Financing will verify the eligibility of applications.
Call for projects for measures promoting energy efficiency outside buildings
A call for projects is open from 5 January 2026 to 30 June 2026 to support measures that promote energy efficiency outside buildings.
This call will be conducted on a ‘first come, first served’ basis, i.e. aid will be granted in the order in which applications are received, until the €15 million budget is exhausted. No specifications have been published; only the conditions specified in the law of 8 December 2025 on the renewal of the environmental and climate protection aid scheme will apply.
N.B. While several state subsidies cannot be granted for the same project, they can be combined with supplier subsidies.
Since 2015, natural gas and electricity suppliers are required to make energy savings for consumers under the obligation scheme. Since then, energy suppliers have been offering support and advice, as well as subsidy programmes for consumers to implement energy efficiency measures. The amount of the premium is proportional to the annual energy saving. The following suppliers offer this service for companies:
N.B. Supplier subsidies can be combined with a state subsidy for the same project.
The tax relief is calculated based on the investments and operating expenses incurred as part of an ecological and energy transition project.
The tax relief rate is set at 18% and is applied directly to the amount of tax due.
This deduction can be combined with standard state subsidies.
For the project to be eligible, it must meet at least one of the following objectives:
For certain objectives, minimum thresholds must be met.
To verify your eligibility and ensure that these thresholds are satisfied, it is recommended that the impact of the measure on one of the above conditions be certified by an expert or a design office.
Further details and conditions: Guichet.lu
For questions: Ministry of Economy – Bonus
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