gas heating – Voltmax Energy Solutions in Luxembourg

Luxembourg Heating Cost Comparison 2026

Piotr Porębski — Sat, 07 Mar 2026 17:46:32 +0000

Heating prices in Luxembourg in 2026 are a topic that raises many questions — especially since the rates for gas, electricity, oil, or pellets alone do not show the full picture. In practice, the actual costs are determined not only by the fuel price, but also by the efficiency of the heating appliance and fixed charges, which can significantly affect the final bill. That is why we compare heating sources using a common denominator: the cost of 1 kWh of useful heat, meaning the heat that actually reaches the home. This approach makes it possible to compare different forms of heating fairly. Based on current reference data for Luxembourg, we show which solutions are the most cost-effective in everyday use. We also explain why the same heating source can be cheaper for some users and more expensive for others — and which factors matter most here. If you are planning to modernize your heating system or simply want to better understand your bills, this comparison will help you make a more informed decision.

Reference fuel prices

Heating costs in Luxembourg can vary significantly not only because each energy source has a different price, but also because different heating systems “produce” different amounts of heat from the same energy. That is why simply comparing the “price of gas” with the “price of electricity” can be misleading.

Below, we compare the most popular heating sources in Luxembourg (gas, electricity, heating oil, pellets). We examine how much 1 kWh of actual heat in the home costs and what the annual bill may amount to for typical demand.

The fairest comparison is the cost of 1 kWh of useful heat (that is, the heat that actually warms the interior). This is important because:

resistive electric heating converts 1 kWh of electricity into about 1 kWh of heat,

a gas/oil boiler has losses and usually delivers less than 100%,

a heat pump can, under favorable conditions, “produce” 3–4 kWh of heat from 1 kWh of electricity (this is the so-called seasonal efficiency/SCOP).

In the calculations, we assume typical seasonal efficiencies:

gas (condensing): about 92%

oil: about 88%

pellets: about 88%

heat pump: SCOP about 3.2 (in reality it is often 3–4, depending on the system and temperature)

Gas (household tariff 01/01/2026 – SUDgaz Classic, prices excluding 8% VAT)

gas: 0.4455 €/m³ + network: 0.2202 €/Nm³, taxes: 0.00108 €/kWh + 0.00912 €/kWh CO₂, fixed charges including 8.69 €/month (network access) + a service fee depending on capacity (e.g. 5 €/month for <10 kW)

calorific value of gas (SUDenergie): 10.2 kWh/m³

Heating oil

official price in Luxembourg (10/02/2026): 0.867 €/l (TVA incl.)

energy in 1 liter (typically): ~10 kWh/l

Wood pellets

example price of bulk pellets with delivery: from 373.22 €/t – it is worth remembering that the price depends on the quantity

example price of bagged pellets in a store (Hornbach LU): 6.79 € / 15 kg

energy in pellets: ~4.8 kWh/kg

Comparison of the cost of 1 kWh of heat depending on the heat source

The cost of 1 kWh of heat from different sources, calculated “after efficiency” of the appliance and based on the reference data above.

Heat pump (SCOP ~3.2): ~0.081 €/kWh of heat
(assuming that 1 kWh of electricity gives about 3.2 kWh of heat; in reality it may be better or worse).

Bulk pellets (about 373 €/t): ~0.088 €/kWh of heat

Condensing gas (with typical fixed charges): ~0.10 €/kWh of heat

Heating oil (0.867 €/l): ~0.099 €/kWh of heat

Bagged pellets (6.79 €/15 kg): ~0.107 €/kWh of heat

Resistive electric heating: ~0.258 €/kWh of heat (because 1 kWh of electricity ≈ 1 kWh of heat)

In practice, this means that under current market conditions in Luxembourg, a heat pump and pellets purchased on favorable terms (in bulk) are most often the most cost-effective options, while resistive electric heating is usually the most expensive option to operate.

Example annual heating cost for a house

If a building uses about 15,000 kWh of heat per year (heating + part of the hot water demand – depending on the standard of the house), the approximate costs may look as follows:

Source	Annually (15,000 kWh of heat)
Heat pump (SCOP 3.2)	~1,209 € / year
Bulk pellets	~1,325 € / year
Heating oil	~1,478 € / year
Condensing gas	~1,506 € / year
Bagged pellets	~1,607 € / year
Resistive electric	~3,870 € / year

What has the biggest impact on the result? 4 factors that change heating costs

First, building insulation and the supply temperature of the system are of huge importance. A heat pump is most cost-effective where the house has reasonable thermal insulation and the heating system operates at low temperatures (e.g. underfloor heating or large radiators). Then the SCOP increases and the cost of 1 kWh of heat decreases.

Second, in the case of gas, fixed and network charges matter. Even if gas itself looks attractive when converted per m³, the bill is increased by the network component, taxes, and fixed monthly items.

Third, not all pellets are equal – what matters is whether you buy them in bulk or in bags, and how much you can order at one time. The difference in price per ton often amounts to hundreds of euros over a season.

Fourth, in the case of electricity, variability results from how charges and support mechanisms are structured. In Luxembourg, there have been significant changes and state interventions concerning elements of the energy bill from 2026 onward.

Which form of heating should you choose in Luxembourg if you are looking for a long-term solution?

If you want the lowest possible heating costs over the long term, then in many cases a heat pump is the winner, because it works like an energy “multiplier”: you pay for 1 kWh of electricity and get several kWh of heat.
Additionally, in practice it is often combined with photovoltaics, so part of the energy for heating (especially during transitional periods) may come from your own roof, which stabilizes costs.

Gas and oil are still sometimes chosen where the priority is the simplicity of replacing a heat source “1 to 1,” and the building has a higher supply temperature while system modernization is limited. Pellets, in turn, are interesting for people who want a “physical” fuel and have space for storage, but it is important to remember about delivery logistics, storage space, and fuel quality.

Energy prices in Luxembourg - key conclusions in 2026

If we compare the actual cost of 1 kWh of heat, rather than fuel prices alone, then in Luxembourg a heat pump and pellets (especially bulk) are usually the best options, while resistive electric heating is usually the most expensive to operate. Gas and oil can be comparable in terms of cost, but the final bill depends on fixed charges, tariffs, and the efficiency of the appliance.

How can Voltmax help with choosing heating and lowering bills?

If you want to compare heating costs in Luxembourg using the example of “your home,” you will reach sensible conclusions the fastest when you calculate the actual energy consumption and check how the system will perform under your conditions. Voltmax can help you with this: we prepare preliminary calculations (heat demand, annual kWh, projected bills), select the right equipment (e.g. heat pump and accessories, system modernization, solutions for low supply temperature), and if you are planning to combine heating with photovoltaics, we match the system so that it actually lowers heating and electricity costs over the year.

In practice, it looks like this: based on data about the building (floor area, insulation standard, type of radiators/underfloor heating, previous bills, comfort preferences), we prepare a comparison of scenarios, e.g. gas vs. heat pump, pellets vs. heat pump, and the “heat pump + photovoltaics” variant. Thanks to this, you compare not only the fuel price, but the actual cost of 1 kWh of heat and the annual heating cost for your case. Additionally, we help you go through the topic of subsidies and formalities – so that the whole thing is calculated not “by eye,” but according to current rules and real figures.

Worried about noise or vibrations from a heat pump? Contact us to design a neighbor-friendly system.

The post Luxembourg Heating Cost Comparison 2026 appeared first on Voltmax Energy Solutions in Luxembourg.

Heating costs in Luxembourg in 2026

Piotr Porębski — Sat, 28 Feb 2026 13:56:04 +0000

Heating costs in Luxembourg in 2026 can vary significantly. This is only partly related to the choice of heat source-whether it is electricity, gas, oil, or pellets. The price is driven mainly by another key factor: the efficiency of a given system in converting energy into heat. Two houses may pay a similar “fuel price,” yet still end up with completely different bills. Over time, it may turn out that one system has higher losses, while another operates more efficiently.

We compare the most popular heating sources using one common denominator to find out what 1 kWh of real, usable heat in a home actually costs. And to go beyond calculations alone, we will also show an example annual bill for typical energy consumption-so it can be easily related to your own place of residence.

How much do you pay for the useful heat that actually reaches your home?

When the topic of heating prices comes up among friends, it often leads to a discussion about which method is cheap and which is expensive. You will often hear that electricity is expensive or that gas is cheap. Such claims usually rely on the energy price on the meter, not on what it costs to produce heat that actually warms the home. So what is useful heat? It is the portion of energy that, after passing through the heating appliance, truly reaches the installation, raising the temperature in living spaces. The rest is lost as waste or escapes during combustion and the device’s own operation. That is why comparing the prices of gas, electricity, or heating oil on their own does not make much sense. After all, different heating systems have different efficiencies. A gas boiler delivers about 92% of the fuel’s energy to the home, while an oil boiler and a pellet boiler deliver about 88%. Electric resistance heating comes closest to 100%. This means, roughly, that 1 kWh of electricity is about 1 kWh of heat.

A heat pump works differently-it does not generate heat from electricity, but transfers it. In practice, this means that two people using different heat sources may pay similar amounts for the energy itself, yet their bills will still differ. One buys 1 kWh and gets almost 1 kWh of heat, while the other, using a heat pump, can obtain several kWh of heat from 1 kWh of electricity.

What does SCOP mean, and why does a heat pump “multiply” energy?

SCOP (Seasonal Coefficient of Performance) indicates the average amount of heat a heat pump can deliver over the entire heating season from 1 kWh of electrical energy. This means that with a SCOP of around 3.2, the pump supplies 3.2 kWh of heat to our home from 1 kWh of electricity. That is why it is said that the device “multiplies” energy. It does not produce all of the heat from electricity-it draws energy from the surroundings (air, ground, water) and transfers it to the heating system.

It is worth remembering that SCOP is not a fixed value. A lot depends on the installation in the home and on the temperature at which the heating system operates. A heat pump performs best where heating can run at lower temperatures, e.g., underfloor heating or larger radiators. It then operates much more efficiently. The higher the supply temperature, the harder it is to achieve a high SCOP, which directly affects heating costs.

Energy and fuel prices in Luxembourg in 2026 - reference data for calculations

Price comparisons should be fair, so reference data from specific sources must be collected. These include: operator tariffs, official price lists, and statistics. This is extremely important because the goal is not to guess the amount of a bill, but to build a clear benchmark for calculations. We show real market prices and official starting points-not promises that every household will pay exactly the same. The final result is also influenced by: consumption, tariff, fixed charges, and system efficiency.

For electricity, we use a working assumption of around €0.258/kWh for a household in 2026-an “average” value based on communications about support mechanisms in Luxembourg (for a typical household) and placed in the broader context of Eurostat data for 2025S1. For gas, we use the SUDgaz Classic tariff effective from 01.01.2026 as a reference point. On the tariff page, we find the gas price, the network component, fixed charges, and taxes. All of these components must be included so as not to underestimate heating costs. To convert values from m³ to kWh, we also use the calorific value provided by SUDenergie: 10.2 kWh/m³.

For heating oil, we rely on official prices published in Luxembourg (for example, on 10.02.2026 it was €0.867/l TVAC) and use a practical conversion factor of 10 kWh per 1 litre. We show pellets in two variants, because this strongly changes the result. As a reference point for bulk pellets, we use an example market price for loose/bulk pellets from €373.22/t (update: 01.12.2025)-it is worth remembering that this is not an official price, but a supplier’s offer, and the final rate usually depends on order size and delivery conditions. For retail bags, the price at Hornbach in Luxembourg is €6.79 / 15 kg. For calculations, we assume a typical energy value for pellets of 4.8 kWh/kg-this is an indicative value commonly used in such comparisons.

How much does 1 kWh of heat in a home cost in 2026?

The fairest way to compare different heating sources is to convert them to the cost of 1 kWh of heat that actually reaches the home. This common denominator immediately shows what is truly cheaper to operate-regardless of whether we are talking about gas, oil, pellets, electricity, or a heat pump. Below we present a comparison of the costs of 1 kWh of heat produced using different heating sources.

Heating source	Assumption (efficiency/SCOP)	Estimated cost per 1 kWh of heat
Heat pump	SCOP 3.2	~€0.081/kWh
Bulk pellets	efficiency approx. 88%	~€0.088/kWh
Condensing gas (incl. fixed charges)	efficiency approx. 92%	~€0.100/kWh
Heating oil	efficiency approx. 88%	~€0.099/kWh
Pellets (bags)	efficiency approx. 88%	~€0.107/kWh
Electric resistance heating	efficiency approx. 100%	~€0.258/kWh

What is an example annual bill if a home uses 15,000 kWh of heat?

To translate these values into a real-life situation, it is worth looking at an example annual bill. We assume that a home needs about 15,000 kWh of heat per year, which is of course a major simplification. This consumption includes both space heating and hot water. The indicative costs are as follows: a heat pump (SCOP 3.2) is around €1,209/year, bulk pellets about €1,325/year, heating oil €1,478/year, condensing gas €1,506/year, pellets in bags €1,607/year, and electric resistance heating about €3,870/year. This is only an example that shows the scale of the differences. It is worth remembering, however, that the final result always depends on the specific home, the operating temperature of the system, the tariff, and actual energy consumption.

What should you choose to heat a home in Luxembourg?

There are two heat pump placements that practically guarantee that noise will start to bother us when using the device.

The first is placing the unit under a bedroom window. The sound has a very short distance to travel, and at night the pump’s noises become very burdensome. The second place is a corner or the space between walls, the so-called recesses and corridors between buildings. In this case, the noise does not spread naturally—it reflects off hard surfaces and is amplified. Additionally, restricted airflow can cause the device to run at higher speeds, which also increases audibility.

Vibrations and mounting vs sound transmission

In Luxembourg, it is best to base your heating choice not only on the fuel price, but on how your home works: what the insulation is like, what radiators you have, what supply temperature is needed, and whether you are planning modernisation for the years ahead. These are the elements that determine whether a given solution will truly be cost-effective, convenient for everyday use, and reliable over time.

In many homes, a heat pump performs very well-especially when the system can operate at a lower temperature, as with underfloor heating or larger radiators. Under such conditions, the pump achieves better seasonal efficiency (SCOP) and heating costs fall. In addition, many homeowners combine it with photovoltaics, which helps control bills even better over the course of the year.

Gas and oil still make sense where a simple “like-for-like” upgrade is important, without major changes to the installation. This is a common choice in older homes that require a higher supply temperature and where replacing the entire heating system would be expensive or technically difficult. In that case, however, it is not only the fuel price that matters, but also fixed charges and future cost volatility.

Pellets, in turn, are a sensible option for people who have space to store fuel and accept a bit more logistics related to deliveries and boiler operation. Pellets usually deliver the best cost results when purchased in bulk and in larger quantities, rather than in retail bags.

In practice, the most important question is not “what is the best?”, but “what makes sense in my home and for how I use it?”.

Heating costs for your home - compare them with Voltmax

General cost comparisons are a good starting point, but the final decision should be made after carrying out specific calculations. That is exactly why at Voltmax we prepare a comparison of heating scenarios tailored to your home-so you can see not only the fuel price, but above all the real cost of heating in practice.

We start our work by conducting an interview about the building-we collect information such as floor area, insulation, type of installation, supply temperature, and previous bills. We perform an initial calculation of heat demand and calculate the costs for different options. We compare gas vs. a heat pump, pellets vs. a heat pump, or a heat pump combined with photovoltaics. In our calculations we include what truly affects the result: equipment efficiency, the heat pump’s SCOP, fixed charges (e.g., for gas), tariffs, and the way the fuel is purchased (e.g., bulk pellets vs. bags). With such calculations, you gain information on the estimated cost per 1 kWh of heat and an indicative annual bill prepared for your real home, not for an example building. This is especially important because the same system can produce completely different results in two similar homes-for example due to differences in insulation or the operating temperature of the installation.

We also help with the next step, namely selecting the equipment and configuring the system. One solution makes sense with underfloor heating and a low supply temperature, while another makes sense with an older radiator-based installation where the modernisation is meant to be as straightforward as possible. If you plan to combine heating with photovoltaics, we take that into account in the comparison and show how it may affect annual costs.

Voltmax also supports you with formalities and available funding options. Thanks to this, you gain knowledge based on current figures and rules. This enables a faster and easier decision on which solution will be more cost-effective-and, above all, convenient in your home.

Do you live in Luxembourg and want to optimise the heating costs of your home? Write to us! We will be happy to select the right solution to help you optimise your costs. You are welcome!

Worried about noise or vibrations from a heat pump? Contact us to design a neighbor-friendly system.

The post Heating costs in Luxembourg in 2026 appeared first on Voltmax Energy Solutions in Luxembourg.