How much does a heat pump cost in Luxembourg in 2026?
By Yacine Sahnoune, founder of renov.lu
In Luxembourg, an air-to-water heat pump costs €12,000 to €24,000 installed in an existing house (including 3% VAT), and a ground-source heat pump €25,000 to €45,000. Ordered before 30 June 2027 to replace an oil or gas boiler, an air-to-water unit receives a €12,000 Klimabonus: most owners are left to pay €4,000 to €12,000.
- Air-to-water heat pump installed (existing house, 3% VAT): €12,000–16,000 at 5–8 kW, €15,000–20,000 at 8–12 kW, €18,000–24,000 at 12–16 kW
- Ground-source heat pump, drilling included: €25,000–45,000; air-to-air heat pump (reversible air conditioning): no Klimabonus and no guaranteed 3% VAT
- Klimabonus 2026 (house, replacing fossil or direct electric heating): €12,000 for air-to-water and €14,000 for ground source when ordered between 1 January 2026 and 30 June 2027, then €10,000 and €12,000
- Extra bonuses: +€1,500 for removing the oil tank, up to +€2,000 for adapting radiators (50% of the cost), +€2,000 in a drinking-water protection zone
- Running cost, 150 m² house (18,000 kWh of heat a year): about €1,200–1,700 of electricity a year, against about €1,800–2,400 of heating oil or €1,950–2,550 of gas
- 3% VAT instead of 17% in a main residence at least 10 years old: a €2,520 difference on an installation costing €18,000 excl. VAT
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Heat pump prices in Luxembourg, by type
In 2026, the air-to-water heat pump is the cheapest central-heating heat pump in Luxembourg: €12,000 to €24,000 installed, VAT included, when it replaces a boiler. A ground-source system costs roughly twice as much because of the drilling, and an air-to-air heat pump qualifies for no grant at all.
| Type of heat pump | Installed price incl. VAT | Klimabonus 2026 (house, replacement) | Best suited to |
|---|---|---|---|
| Air-to-water (outdoor unit + hydraulic module) | €12,000 – 24,000 | €12,000 (ordered by 30/06/2027), then €10,000 | Wet central heating with radiators or underfloor heating: the most common case |
| Ground source (vertical boreholes or horizontal collectors) | €25,000 – 45,000 | €14,000 (ordered by 30/06/2027), then €12,000 | Plot reachable by a drilling rig, drilling permitted, long-term project |
| Hybrid heat pump + gas boiler | €13,000 – 20,000 | €0: the fossil back-up rules out the grant | Transition in a house not yet insulated |
| Air-to-air (reversible air conditioning) | See the cost of air conditioning | €0, and 17% VAT as a rule | Flats or rooms without central heating |
A hybrid heat pump is only subsidised if its back-up is not fossil, if it can run on its own and if it covers at least 70% of the heat demand. In a new build, an air-to-water heat pump receives €3,000, with no increase. To choose between these types before comparing prices, read our guide to heat pumps in Luxembourg.
There is no official price scale for heat pumps in Luxembourg. The ranges on this page come from a renov.lu survey of installers in the Grand Duchy in September 2026, 3% VAT included, for an existing detached house. Only a quote issued after a site visit binds the installer.
Air-to-water heat pump prices by size and insulation of the house
The price of an air-to-water heat pump follows its output, and the output depends on the house’s heat loss, not just its floor area: a recent 150 m² house is heated with 6 kW, while an uninsulated 1970s house of the same size can need more than 14.
| Type of house | Usual output | Installed price incl. VAT |
|---|---|---|
| Recent or renovated house (after 2006, EPC A to C), 120 to 180 m² | 5 – 8 kW | €12,000 – 16,000 |
| House built 1976 to 2005, partly insulated, 130 to 180 m² | 8 – 12 kW | €15,000 – 20,000 |
| Pre-1976 house with little insulation, or over 200 m² | 12 – 16 kW | €18,000 – 24,000 |
| Heat demand above 16 kW | 2 units in cascade | Case by case: insulating first is often cheaper |
Beyond these ranges, the price rises mainly with the ancillary work: radiators to replace, electrics to upgrade, an awkward spot for the outdoor unit. With heavy work, the total budget can reach €28,000. The output is set by a heat-loss calculation under standard EN 12831: see how to size a heat pump.
The output of your old boiler (often 20 to 30 kW) says nothing about the real demand. An oversized heat pump costs more to buy and runs in short cycles that erode its efficiency. Ask for the house’s calculated heat loss, in kW, at your municipality’s design outdoor temperature to appear on the quote.
What the price of an air-to-water heat pump includes, item by item
In a 10 kW air-to-water installation replacing a boiler, the machine itself accounts for about half the price: the rest is installation, the hot-water cylinder, electrics and the equipment the Klimabonus requires.
| Item | Range incl. VAT | What to check on the quote |
|---|---|---|
| Heat pump: outdoor unit, hydraulic module, controls | €7,000 – 10,000 | Exact model, COP of at least 3.1 at A7/W35, sound power level |
| Domestic hot-water cylinder, 200 to 300 litres | €1,500 – 2,500 | Built into the module or separate, sized for the household |
| Buffer tank (30 litres per kW) | €0 – 1,200 | Required by the Klimabonus unless the heat pump modulates its output |
| Installation, pipework, hydraulic connection, commissioning | €2,500 – 5,000 | Base or anti-vibration mounts, core drilling, length of the works |
| Dedicated power supply and heat pump electricity meter | €800 – 1,500 | Meter required by the Klimabonus |
| Heat meter, hydraulic balancing, system flush | €600 – 1,500 | Meter and balancing required by the Klimabonus |
| Removal and disposal of the old boiler | €300 – 800 | Must appear on the quote |
| Decommissioning or removal of the oil tank | €800 – 2,000 | Specialist firm: qualifies for a €1,500 Klimabonus |
| Replacing undersized radiators | €250 – 600 fitting per radiator, plus the radiator | Separate line: 50% refunded, up to €2,000 |
In a renovation, an offer below €12,000 including VAT almost always leaves something out: cylinder, electrics, meters, hydraulic balancing or boiler removal. Without an electricity meter, a heat meter and hydraulic balancing, the Klimabonus is refused. The installer must also request acceptance of the heat pump by the Chambre des Métiers within a month of commissioning. Our heat pump quote page lists what to demand.
Klimabonus and 3% VAT: what comes off the price
Three levers reduce the price of a heat pump in Luxembourg: the Klimabonus, a flat-rate grant paid after installation, 3% VAT, applied directly on the invoice, and Enoprimes grants, to be requested before ordering. The Klimabonus does not depend on output and can never exceed the invoice amount excluding VAT. Your commune may add €500 to €6,000 more for an air-to-water heat pump (84 of the 100 communes): commune grant for a heat pump.
| Klimabonus, single-family house | Ordered 01/01/2026 to 30/06/2027 | Ordered from 01/07/2027 |
|---|---|---|
| Air-to-water replacing fossil or direct electric heating | €12,000 | €10,000 |
| Air-to-water with no fossil heating to replace | €8,000 | €6,000 |
| Ground source replacing fossil or direct electric heating | €14,000 | €12,000 |
| Air-to-water in a new build | €3,000 | €3,000 |
| Bonuses: oil tank / radiators / water protection zone | +€1,500 / 50% of costs, max. €2,000 / +€2,000 | |
The increase applies to orders placed between 1 January 2026 and 30 June 2027 and invoiced by 31 December 2028 at the latest. For a heat pump there is no approval in principle to obtain before the works: the Klimabonus application is filed after installation, within 4 years of the end of the invoice year. Deducting the grant directly from the invoice (pre-financing) will only be possible for invoices issued from 1 January 2027. Technical conditions, combining aid, the social top-up and the procedure: see all heat pump grants in Luxembourg.
Enoprimes: the enoprimes.lu grant programme pays an extra €1,700 to €2,500 for an air-to-water heat pump in a house, plus an anniversary bonus of €1,000 in 2026 (amounts checked on 25 September 2026). The application must be opened before ordering, through a partner installer of the programme; the grant can be combined with the Klimabonus.
VAT: installing heating in a main residence at least 10 years old is invoiced at 3% instead of 17%, up to a tax benefit of €50,000 per home. On €18,000 excluding VAT, the VAT drops from €3,060 to €540. To invoice directly at 3%, the installer obtains approval from the AED (the VAT authority) before the works start, and you countersign the application. Air conditioning is excluded from this rate: an air-to-air heat pump does not qualify unless the AED rules otherwise. Details: 3% VAT on renovation work.
Three worked examples: price, Klimabonus and net cost
In a house replacing an oil or gas boiler with a heat pump ordered before 30 June 2027, the Klimabonus covers 40 to 75% of the price including VAT in the three cases below.
| A. 1975 house, oil | B. 2005 house, gas | C. 1990 house, oil, ground source | |
|---|---|---|---|
| House | 150 m², 4 radiators replaced | 140 m², radiators kept | 180 m², existing underfloor heating |
| Installation | 12 kW air-to-water | 8 kW air-to-water | 10 kW ground source, 2 boreholes |
| Price excl. VAT | €19,000 heat pump + €2,500 radiators + €1,600 tank = €23,100 | €15,500 | €35,000 heat pump and drilling + €1,600 tank = €36,600 |
| Price incl. 3% VAT | €23,793 | €15,965 | €37,698 |
| Klimabonus | €12,000 + €1,250 (radiators) + €1,500 (tank) = €14,750 | €12,000 | €14,000 + €1,500 (tank) = €15,500 |
| Net cost | ≈ €9,040 | ≈ €3,970 | ≈ €22,200 |
Ordered from 1 July 2027, the same installation B would receive €10,000: the net cost would rise to about €5,970. Lower-income households can also claim the social top-up, worth 10 to 100% of the Klimabonus depending on income.
In example B, the net cost of about €4,000 is lower than the price of a wall-hung condensing gas boiler with hot water, which costs €7,000 to €11,000 installed with no grant. If your boiler has to be replaced anyway, compare the two: see the cost of replacing a boiler.
Running cost: what a heat pump costs a year against oil and gas
For a properly insulated 150 m² house using 18,000 kWh of heat a year, an air-to-water heat pump costs about €1,200 to €1,700 of electricity a year, against €1,800 to €2,400 of heating oil and €1,950 to €2,550 of gas.
| Heating | Energy used per year | Energy cost per year | Servicing per year |
|---|---|---|---|
| Air-to-water heat pump (SCOP 3.0 to 3.5) | 5,100 – 6,000 kWh of electricity | €1,200 – 1,700 | €150 – 300 |
| Ground-source heat pump (SCOP 4.0 to 4.5) | 4,000 – 4,500 kWh of electricity | €950 – 1,250 | €150 – 300 |
| Oil boiler (≈ 90% efficiency) | ≈ 2,000 litres | €1,800 – 2,400 | €200 – 350 |
| Condensing gas boiler (≈ 92%) | ≈ 19,600 kWh of gas | €1,950 – 2,550 | €150 – 250 |
Price assumptions, orders of magnitude on the Luxembourg market in September 2026 (renov.lu survey) to be replaced with the figures on your own bills: electricity €0.24 to €0.28/kWh incl. VAT (the government puts the 2026 average for a typical household at 25.8 cents per kWh, gouvernement.lu), gas €0.10 to €0.13/kWh, heating oil €0.90 to €1.20/litre. At average values, an air-to-water heat pump saves about €650 a year against oil and €800 against gas. The full 15-year calculation, pellets and electric heating included, in our comparison of the cheapest heating systems.
What pushes the price of a heat pump up or down
Between two quotes for the same house, the gap rarely comes from the brand: it comes from the output chosen, the heat emitters and how complex the installation is. To compare the models themselves, see our heat pump brand comparison.
| Factor | Effect on the price |
|---|---|
| Insulation and output | Going from 5-8 kW to 12-16 kW adds about €6,000 to €8,000. Insulating the roof before choosing the heat pump reduces the output needed. |
| Heat emitters | Radiators kept: nothing. Undersized radiators: €250 to €600 fitting each. Underfloor heating: €80 to €160/m² excluding the heat pump. |
| Position of the outdoor unit | Long pipe runs, base, acoustic screen. The model building regulation proposed to municipalities sets a minimum 2 m set-back from the boundary, and a co-ownership must vote. |
| Domestic hot water | Cylinder built into the module or separate 200 to 300-litre cylinder: €1,500 to €2,500. |
| Ground source | Drilling depth, ground type and rig access explain most of the gap between €25,000 and €45,000. |
| Order date | Ordered before 30 June 2027: €2,000 more in grants. |
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Frequently asked questions about heat pump prices in Luxembourg
What does an air-to-water heat pump cost for a 150 m² house in Luxembourg?
For a 150 m² house, budget €12,000 to €16,000 including VAT if it is recent or renovated (5 to 8 kW heat pump), €15,000 to €20,000 if it is partly insulated (8 to 12 kW) and €18,000 to €24,000 if it was built before 1976 without insulation (12 to 16 kW). These prices include installation, the hot-water cylinder, electrics and removal of the old boiler, with 3% VAT. The €12,000 Klimabonus then comes off if you replace a fossil-fuel boiler.
How much does a ground-source heat pump cost in Luxembourg, drilling included?
A ground-source heat pump costs €25,000 to €45,000 including VAT in Luxembourg, boreholes or collectors included. The spread depends mainly on the borehole depth, the ground type and access for the drilling rig. Ordered before 30 June 2027 to replace fossil heating, it receives a €14,000 Klimabonus, then €12,000. Its electricity cost is about 20 to 25% lower than that of an air-to-water heat pump.
Is a subsidised heat pump cheaper than a new gas boiler?
Often, yes. A wall-hung condensing gas boiler with hot water costs €7,000 to €11,000 installed, with no grant. An 8 kW air-to-water heat pump at about €16,000 including VAT comes down to about €4,000 after the €12,000 Klimabonus, and it cuts the energy bill by about €800 a year. The advantage disappears if the house needs a high-output heat pump and many new radiators.
Which VAT rate applies to installing a heat pump in Luxembourg?
An air-to-water or ground-source heat pump installed by a company in a main residence at least 10 years old is invoiced at 3% VAT instead of 17%, up to a benefit of €50,000 per home. The installer requests AED approval before the works and you countersign. A new build intended as your main residence also qualifies for 3%. An air-to-air heat pump, treated as air conditioning, normally stays at 17%.
Will a heat pump be cheaper if I wait until 2027?
No, waiting is more likely to cost more. The Klimabonus for an air-to-water heat pump falls from €12,000 to €10,000 for orders placed from 1 July 2027, and the STATEC construction price index rose by 2.6% over one year. The pre-financing planned for 2027 invoices will only spare you from advancing the grant: it does not change the amount.
How much does the ancillary work for a heat pump cost?
The most frequent ancillary items are removing the boiler (€300 to €800), decommissioning the oil tank (€800 to €2,000), a dedicated power supply and meter (€800 to €1,500) and replacing undersized radiators (€250 to €600 fitting each). Two of them are subsidised: €1,500 for the tank and 50% of the cost of adapting the radiators, up to €2,000.