Solar energy allows the production of carbon-free electricity and contributes to the reduction of greenhouse gases, in particular CO2.
Luxembourg encourages the installation of such panels by various forms of financial as well as technical assistance and support. Since the summer of 2020, a new attractive pricing structure has been in place. It is part of the Clever Solar campaign, the purpose of which is to promote solar energy. In parallel, a solar cadastre is easily accessible on the Geoportail.lu website to evaluate the solar potential of each building. The aim of this is the promotion of self-assisted purchases among businesses and individuals.
From a legal perspective, the Grand Duchy has for the time being opted to impose the obligation to obtain a building permit for each installation of solar panels. Thus, prior to installing a solar energy system, it is advisable to inform oneself on the urban planning rules to be complied with.
Moreover, the location of the surfaces on which the panels are to be installed poses particular challenges. For example, the installation of solar panels on the roof of a jointly-owned building is rendered more complex because the administration of the cadastre cannot currently determine the cadastral number specific to a roof, something which is most often considered a part of the building's common areas. The developers of such a project must thus be particularly attentive to the provisions of any potential lease agreement that must cover the entirety of the issues specific to the site and to the project, such as the installation conditions for the panels, as well as the cabling in the building, access, responsibility for maintenance and repair work, risk sharing, civil liability, connection to the general electricity grid, duration and renewal, removal at the end of the contract, assumption of bankruptcy by the developer, etc.
The final issue to take into consideration concerns the conditions for connecting the installation to the general electricity grid, and therefore discussions with Creos Luxembourg S.A. (the electricity grid operator).
In conclusion, the ecological and economic attractivity of the installation of solar panels should not allow us to forget the legal uncertainty inherent in these types of innovative projects, as well as the absolute necessity to be supported by seasoned professionals, on both the technical and legal levels.
DSM Avocats à la Cour has worked actively with its clients on technological issues in the real estate industry for several years and can provide you the benefit of its expertise and pragmatism.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.