With energy prices soaring in Luxembourg, demand for energy renovation is rising sharply. What if now was the perfect time to renovate?
Contents:
A meteoric rise in energy prices
+40% to 50% on electricity bills. This is the increase that Luxembourg residents have seen following the end of the tariff shield on energy prices. Gas prices have also started to take a beating.
Luxembourg's energy suppliers have adjusted (or are in the process of adjusting) their prices, and the facts are now clear:
- Households will be paying more for energy in 2025
- Prices unlikely to fall in the short term
For those who heat with electricity or gas in the Grand Duchy, this is bad news: with the cold winter, their energy costs are set to rise.
Fortunately, there are ways of dealing with them.
Energy renovation increasingly attractive in Luxembourg
In keeping with the European trend, it should be remembered that Energy prices should continue to rise in 2025. Unless you want to drastically reduce your energy consumption, the best way to save money while keeping warm is to undertake a comprehensive energy renovation of your home.
In plain English: carry out work to reduce the energy needed to heat your home. So you can easily reduce your bill.
Secondly, it should be remembered that the vast majority of residential property in Luxembourg is of energy class F or G, depending on the type of property. our latest study based on more than 2,500 simulations online. So there's a very good chance that your home is already considered to be a heat sink.
If you want to significantly reduce your energy costs, you need to carry out a methodical renovation:
- By insulating the attic first: because the roof is the main source of heat loss (up to a third of your heating evaporates through the roof).
- Then insulate the walls. They are responsible for 20% to 25% of heat loss. In some cases (concrete or breezeblock without insulation), walls can even allow half the heat in the house to escape.
- By changing the way you heat and produce domestic hot water: by opting for a method that is more efficient than oil or gas heating. For example, you can combine a heat pump with a thermodynamic hot water tank to get the best possible performance.
- Finally, if necessary, by changing the windows and installing energy-efficient ventilation.
Find out all about it in our complete guide to energy renovation 2026.
Financial incentives (a priori) unchanged for 2025
The good news is that, for the time being, people in Luxembourg can stick to the renovation bonus scale in force in 2024. These grants generally finance between 50% and 60% of an energy renovation project. (supply and installation).
Even better news: in Luxembourg, aid is massive and indiscriminate. In other words, you can benefit from the same amount of premiums:
- Whatever your income
- Wherever you live (with the exception of certain additional municipal grants)
- Whatever the composition of the household
This system is an exception in Europe. Take neighbouring countries (France, Belgium), for example: local aid is often determined by income category and household composition.
For the moment, Luxembourg's subsidies are unchanged, so there's still time to take advantage of them.
You can also benefit from the Klimabonus, Enoprimes grants, municipal grants (depending on your local authority) and additional means-tested grants.
To find out more, click here:
- Estimate your 2026 renovation premiums with this simulator
- Or consult our renovation incentives guide.
Anticipating market trends to renovate at the right time
Even if the grants are substantial, you still have to pay for some of the work out of your own pocket. And that can represent a significant budget. That's why it can be tempting to wait several years before doing it.
But strategically, here's why 2025 could be an excellent year to renovate:
Because regulations are going to change
Whereas France is already banning the letting of heating flats and Germany is tightening its energy performance requirements, Luxembourg should naturally follow this European trend.
We don't yet know when or how, but experts expect a gradual tightening of energy standards for buildings after 2025particularly for rental properties.
By renovating now, you cananticipate these future regulatory constraints and protect your property.
Because the renovation market is already under pressure
The increase in the number of energy renovation projects across Europe suggests that the market for qualified professionals is under increasing pressure.
In Luxembourg, where the The construction sector is already under pressure, waiting times for energy renovations are likely to increase significantly after 2025.
Homeowners who start work in 2025 will still benefit from the relative availability of certified tradesmen, at reasonable prices (because the price of labour and materials could also rise...!).
Because aid could decrease after 2025
Although the current Klimabonus programme offers particularly advantageous conditions, experience in neighbouring countries shows that aid schemes tend to become more selective over time.
You might think that, with rental bans on certain properties, the amount of aid would increase. But the opposite is true in neighbouring countries. For example : MaPrimeRénov' subsidies reduced for 2025 for high incomes. They were then paused in the summer of 2025 to be revised downwards in their entirety.
Current bonuses could therefore be reduced after 2025, while the award criteria could be tightened.
It is therefore in the interests of homeowners to take advantage of the current particularly favourable conditions.
Conclusion: why not wait to renovate?
Given the continuing rise in energy prices, the favourable subsidy regime and the foreseeable changes in regulations, 2025 seems to be the right year to take action.
Homeowners who choose to renovate will benefit from these three major advantages:
- craftsmen available at reasonable prices
- generous renovation bonuses
- an excellent valuation of their property (+10% to +20% depending on the extent of the renovation) while anticipating a future tightening of standards
Slight downside: It should be noted, however, that while heat pumps offer a good better performance than traditional boilers (gas, oil), homeowners who renovate could be more affected by the new electricity grid tariffs decided by the ILR (more information). However, this price increase for large consumers of electrical power would remain minimal compared with the considerable gains made by energy renovation.