Flemish government ends solar panel premium in 2024: Here are the new housing renovation subsidies

LiviosWe had to say goodbye to the solar panel premium at the beginning of 2024. But there are other premiums for those who want to build or renovate. Making our housing stock more energy efficient is a priority, and the Flemish government wants to stimulate this with certain financial subsidies. Bouwsite Livios will help you get started with this handy overview.

Solar panel premium ends

2021 was the year of the year in Flanders a solar panel installation to place. From January 2021, you will receive a one-off premium of 1,500 euros. That premium came as compensation for the disappearance of the reversing counter. Initially, the Flemish government wanted to reduce this premium in 2022, but the reduction did not occur until 2023. The premium for solar panels in 2023 was still a maximum of 750 euros. Normally, the premium would halve again from January 1, 2024, to a maximum of 375 euros, before disappearing completely in 2025. But the government decided to end the premium early. In 2024 you can no longer apply for a premium for the installation of solar panels.

My Renovation Premium in 2024

Are you investing in a house or apartment in the Flemish region, to make the building more energy efficient (with roof, wall and floor insulation, high-efficiency glass, a solar boiler, heat pump)? Or to improve the quality of the home (electricity, plumbing, interior renovation, windows and doors)? Then you can apply for the My Renovation Premium for this. The amount of the premium depends on the income category to which you belong. Initially, in 2024, the percentages of this premium would drop for the lowest and middle income categories, to 25 and 35 percent respectively. But that is not (yet) the case. The government decided to extend the temporary higher premium until the end of 2024.

If you belong to the lowest income category, you will also receive a maximum of 50 percent of your bill as a premium in 2024. Unless you invest in a gas condensing boiler, then the premium is a maximum of 40 percent. Are you in the middle income category? Then you will still get a maximum of 35 percent of your invoice amount back. Unless you invest in a heat pump, heat pump boiler and solar boiler, then the premium is 40 percent of the invoice amount. If you are in the highest income category, you will receive a maximum of 40 percent as a premium.

Asbestos premium extended

How want to remove asbestos in combination with installing wall insulation, you can apply for an asbestos premium. This premium amounts to 8 euros per square meter. Normally this premium (for the combination of asbestos removal and wall insulation) would stop at the end of 2023, but the Flemish government has decided to extend the premium until the end of 2025. If you combine asbestos removal with roof insulation, you can also apply for this premium. No end date has been set for this.

Basic premium for roof insulation will not decrease

Let you insulate your roof through a contractor, then you can apply for a premium for this via the My Renovation Premium. Normally, this premium would decrease by half in 2024: instead of 8 euros per square meter, you would only be entitled to 4 euros per square meter. Here too, the Flemish government decided not to reduce the premium and to maintain the premium amount until the end of 2025.

Higher premium for heat pump remains

Good news for whom an air-water heat pump or a hybrid heat pump want to have installed. The increased premium would normally decrease again from 2024. The basic premium of 3,000 euros for an air-water heat pump would drop to 2,250 euros. That of a hybrid heat pump would drop from 2,000 euros to 1,500 euros. The government decided to extend the increased premium until the end of 2025. So if you purchase an air-water heat pump or a hybrid heat pump this year, you are still entitled to the increased premium. Know that A hybrid heat pump will no longer be permitted in new construction from 2025 onwards. From then on it is only possible to install an electric heat pump. This does not apply to renovations.

Demolition and reconstruction premium

Are you planning to demolish an existing, old home and replace it with an energy-efficient new construction? Then you pay (as a private individual) 6 percent VAT instead of 21. The government decided this in October 2023. To be able to rely on the low VAT rate, you must meet certain conditions. If you do not meet these conditions, you can a demolition and reconstruction premium to request. This premium amounts to 10,000 euros.

Also good to know:
From January 1, 2024, the VAT rate for solar panels and solar boilers will rise back to 21 percent for homes under 10 years old. The VAT rate for heat pumps will remain at 6 percent from 2024 – indefinitely – for homes under 10 years old. In addition, a lot will change for homeowners, tenants and builders in 2024.