CSL criticises climate reform for social inequality

Luxembourg's transition to sustainable energy is gaining momentum: the government is proposing to replace the existing subsidy scheme for solar panels (where up to 50% of the cost is covered) with a new one - fixed and dependent on the capacity of the installation and the availability of energy storage. On the face of it, a step towards simplification. But the Chambre des salariés (CSL) believes it hides new barriers for the less well-off.

CSL welcomes the very idea of prepayment and support for renewable sources. But the official conclusion emphasises that under the current formula, the subsidy may be lower for many families. This is especially true for systems with a capacity of around 7-8 kW, which are the ones most often installed in middle-class homes.

CSL economist Claude Roeltgen notes that the government should have included real examples in the bill to show how the new model works in practice. Now the comparison relies on abstract calculations of maximum payments - making it difficult to understand the consequences for specific households.

The problem is particularly acute for homeowners with small roofs. The new system excludes support for installations of less than 3 kW. This means that low-income households that are physically unable to install larger panels are ineligible for the subsidy altogether. "Once again we see how climate policy can unintentionally reinforce social inequalities," emphasises Röltgen.

Energy Minister Lex Delles insists: if families can get a favourable commercial offer from the installer, they can get more than 50% of the cost under the new formula. CSL does not deny this possibility, but notes that everything depends on market conditions and installation prices, which are unstable and often rise.

CSL's biggest concern is the lack of a mechanism aimed at supporting the poor. "Such programmes are often unintentionally more beneficial to wealthy households. This needs to change," says Röltgen. He calls for a review of the entire climate aid system and the introduction of a social progression principle: the lower the income, the higher the support.

CSL is also proposing to extend the prepayment model beyond solar panels to other forms of energy-efficient upgrades - such as insulation and heating system replacement.