In Luxembourg, the heat pump vs gas boiler debate has been settled by energy policy: gas is being phased out. But from an economic standpoint, which system is truly more advantageous in 2026?
The Luxembourg Context in 2026
Luxembourg is committed to an ambitious energy transition. Since 2023, new builds can no longer be fitted with gas or oil boilers.
The Klimabonus generously subsidises heat pump installations, while gas boilers are not eligible. This asymmetry changes the financial calculation.
The Heat Pump: Champion of Subsidies
A heat pump captures calories present in the air, ground, or water to produce heat. For every 1 kWh of electricity consumed, it generates 3 to 5 kWh of heat.
Types of Heat Pumps
| Type | Installation Cost | Average COP |
|---|---|---|
| Air-source (air-to-water) | €12,000 to €20,000 | 3.0 to 4.0 |
| Ground-source (geothermal) | €20,000 to €40,000 | 4.0 to 5.5 |
| Air-to-air | €5,000 to €12,000 | 2.5 to 3.5 |
Klimabonus Grants for Heat Pumps in 2026
The Klimabonus covers up to 50% of eligible costs for a heat pump, with a cap of up to €12,500.
For an air-source heat pump at €15,000:
- Klimabonus grant: up to €7,500
- Net cost: approximately €7,500
The Gas Boiler: The Unsubsidised Option
Cost of a Gas Boiler
| Item | Cost |
|---|---|
| Condensing boiler | €3,000 to €6,000 |
| Installation and connection | €1,500 to €3,000 |
| Total installation | €4,500 to €9,000 |
No Klimabonus grant available for gas.
15-Year Financial Comparison
For a 150m² house:
| Item | Air-Source Heat Pump | Gas Boiler |
|---|---|---|
| Gross installation | €15,000 | €7,000 |
| Klimabonus grant | -€7,500 | €0 |
| Net installation cost | €7,500 | €7,000 |
| Annual running costs | €900 to €1,400 | €1,600 to €2,800 |
| Running costs over 15 years | €13,500 to €21,000 | €24,000 to €42,000 |
| Total over 15 years | €21,000 to €28,500 | €31,000 to €49,000 |
The heat pump saves between €10,000 and €20,000 over 15 years.
Our Recommendation
Choose a heat pump if:
- Your home is well insulated or you plan to insulate it
- You’re aiming for long-term savings
Choose a gas boiler only if:
- Your budget is very limited
- You need a temporary solution (3 to 5 years)
Find Your Heating Engineer on tack.lu
Want to switch to a heat pump? On tack.lu, describe your project and receive up to 3 free quotes from certified heating engineers.
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FAQ
Is my old house compatible with a heat pump?
Yes, provided the installation is adapted. Older houses sometimes require replacing radiators with low-temperature models.
How long to recoup the cost of a heat pump?
With Klimabonus grants, the payback period is 5 to 8 years compared to gas.
Will gas be banned for renovations?
No formal ban is in place for renovations in 2026, but the regulatory trend is clearly heading in that direction.
