The authors have investigated the role of the Si excess on the photoluminescence properties of Er doped substoichiometric SiOx layers. They demonstrate that the Si excess has two competing roles: when agglomerated to form Si nanoclusters (Si-nc’s) it enhances the Er excitation efficiency but it also introduces new nonradiative decay channels. When Er is excited through an energy transfer from Si-nc's, the beneficial effect on the enhanced excitation efficiency prevails and the Er emission increases with increasing Si content. However, when pumped resonantly, the Er luminescence intensity always decreases with increasing Si content. These data are presented and their implications are discussed.