Is photovoltaics in the Grand Duchy an economical solution?

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Rudolphe ABEN

Is photovoltaics in the Grand Duchy an economical solution?

The Grand Duchy of Luxembourg is a small landlocked country in Western Europe with a population of around 630,000. Despite its modest size, the country has high ambitions in terms of sustainable development and reducing its greenhouse gas emissions. One of the key strategies for achieving these goals is the use of solar PV, a renewable energy source that converts sunlight into electricity.

The question, however, is: is photovoltaics an economic solution in the Grand Duchy?

First of all, it should be noted that the cost of photovoltaic solar energy has fallen considerably in recent years, making this source of energy more affordable for individuals and businesses. The cost of installing solar panels has also fallen, making this option more accessible.

In addition, the Luxembourg government has introduced several tax incentives to encourage the adoption of photovoltaic solar energy. Homeowners who install solar panels can benefit from a tax deduction of up to 30% of the purchase and installation costs, while companies can benefit from subsidies for solar energy projects.

In terms of profitability, the cost of producing electricity from solar photovoltaic energy is currently lower than that of fossil fuels in many countries, and the Grand Duchy is no exception. Costs vary depending on various factors such as location and size of the installation, but overall the cost of solar photovoltaic energy continues to fall.

In addition, solar PV has significant environmental benefits. By reducing reliance on fossil fuels, it helps to reduce greenhouse gas emissions and protect the environment.

In conclusion, solar PV is a cost-effective solution for the Grand Duchy, with falling production costs and tax incentives to encourage its adoption. Although this energy source has its limitations, it can be a key element in the country's energy transition to more sustainable and renewable energy sources.