The heat pump is the most heavily subsidised heating system under the 2026 Klimabonus — but should you go for air-source or geothermal? That’s the real question, and the answer depends on your plot of land, your budget and how well your home is insulated. Here is a clear comparison, the prices, the grants and the criteria for choosing.
New: estimate your grants in 30 seconds. Our renovation aid calculator works out your Klimabonus and bonuses based on the official 2026 rates.
Why a heat pump in 2026?
Since 2025, oil and gas boilers have no longer been eligible for state grants. The heat pump has established itself as the reference solution:
- High efficiency: a heat pump delivers 3 to 4 kWh of heat for every 1 kWh of electricity consumed.
- The most heavily subsidised: up to €12,000 for an air-source unit, €15,000 for a geothermal one.
- Solar-friendly: paired with solar panels, it runs largely on self-generated energy.
Air-source vs geothermal: the comparison
| Criterion | Air-source heat pump | Geothermal heat pump |
|---|---|---|
| Heat source | Outside air | Ground (buried collectors) |
| Installed cost | €12,000 – €20,000 | €25,000 – €40,000 |
| 2026 Klimabonus grant | up to €12,000 | up to €15,000 |
| Efficiency (COP) | Good, variable in winter | Excellent and stable |
| Works involved | Light (outdoor unit) | Heavy (drilling / earthworks) |
| Land required | No | Yes (garden or borehole) |
| Ideal for | Renovation, controlled budget | New build, available land |
The air-source heat pump is the most common: cheaper, easy to install and well suited to renovation. The geothermal option offers the best efficiency and stability in winter, but it requires land and a heavier investment — it makes the most sense in a new build or an ambitious renovation.
The 2026 Klimabonus grant for heat pumps
| Type of heat pump | Base grant | With bonuses |
|---|---|---|
| Air-source | €8,000 | up to €12,000 |
| Geothermal | €12,000 | up to €15,000 |
On top of this you may add:
- Social top-up: +25% for lower-income households.
- Whole-home renovation bonus: +15% if you carry out at least 3 different types of work within a 24-month period.
- Reduced 3% housing VAT instead of 17%.
Important: start by obtaining the agreement in principle before the work begins. Find all the steps in our Klimabonus forms and application guide. Check your exact amount with the aid calculator.
Sizing your system and getting the installation right
The real-world performance of a heat pump depends on a careful installation:
- Insulation first: a heat pump is all the more efficient when the home is well insulated. Consider external wall insulation beforehand.
- Low-temperature emitters: underfloor heating or suitable radiators maximise efficiency.
- Correct sizing: an oversized heat pump wears out faster; a thermal assessment is essential.
- Approved company: only an installation carried out by a company registered in Luxembourg qualifies for the grant.
To receive up to 6 quotes from vetted heating companies, request your free quotes — with no obligation.
FAQ
What grant is available for a heat pump in Luxembourg in 2026?
The 2026 Klimabonus funds an air-source heat pump up to €12,000 and a geothermal heat pump up to €15,000, with a 25% uplift for lower-income households and a 15% bonus for a whole-home renovation (≥ 3 types of work within 24 months).
Air-source or geothermal: which should you choose?
The air-source heat pump suits most renovations: cheaper (€12,000–€20,000) and easy to install. The geothermal option, more efficient and stable in winter, costs more (€25,000–€40,000) and requires land; it is ideal in a new build.
Does a heat pump work well in winter in Luxembourg?
Yes. A modern air-source heat pump works down to sub-zero temperatures; its efficiency drops in severe cold, which is offset by correct sizing and effective insulation. The geothermal option maintains stable efficiency all year round.
Should you insulate before installing a heat pump?
It is strongly recommended. A heat pump is more efficient and cheaper to run in a well-insulated home. Combining insulation and a heat pump can also trigger the whole-home renovation bonus.
Can you pair a heat pump with solar panels?
Yes, and it is in fact the most cost-effective combination: solar panels power the heat pump during the day, sharply reducing your electricity bill and heating costs.
