Luxembourg to provide more than €170m in energy aid
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In a response to Parliamentary Question 1740, the Minister for the Economy, Energy and Tourism, Lex Delles, and the Minister for Environment, Climate and Biodiversity, Serge Wilmes, explained the government's position on the impact of rising electricity prices on heat pump owners.
The increase in electricity tariffs in 2025 is a concern, especially among households using heat pumps. To minimise the burden on households, the government will continue to subsidise electricity by allocating 171 million euros.
Heat pumps are considered a key technology to meet Luxembourg's climate targets. As part of the National Energy and Climate Plan (PNEC), the authorities aim for 50% of old boilers to be replaced by renewable heating systems. Of these, 95 per cent of the replacements will be heat pumps and 5 per cent will be wood-based solutions.
Even if the transition is slower (e.g. only 5 per cent of old boilers will be replaced), Luxembourg will still remain within its climate strategy.
Bureaucratic delays remain an important barrier to the transition to clean heating technologies. At the moment, it takes 12 months to process subsidy applications, and 10 months if submitted via MyGuichet. The authorities plan to shorten this period by pre-financing Klimabonus Wunnen, but when this will happen is not specified.
The Luxembourg government is focusing on heat pumps in an effort to keep the adoption rate high. However, the issue of electricity prices and delays in subsidy payments remains an issue for households, which may slow down the transition to clean heating.
