Pellets vs heating oil: the cost comparison
Price per useful kWh and annual fuel bills compared, excluding investment and maintenance — calculated from dated sources and refreshed automatically every day.
Price per useful kWh by energy source
Useful kWh = heat actually delivered (net calorific value × boiler efficiency). Market prices: Luxembourg; sources and dates in the methodology below.
| Energy | € / useful kWh | vs heating oil | kg CO₂ / kWh |
|---|---|---|---|
| Heating oil | 16.5 ct | ref. | 0.324 |
| Natural gas | 7.0 ct | −58 % | 0.227 |
| Propane | 15.5 ct | −6 % | 0.231 |
| Electricity | 20.2 ct | +23 % | 0.12 |
| Pellets (ENplus A1) | 9.8 ct | −40 % | 0.03 |
| Pellet / wood mix | 5.0 ct | −70 % | 0.03 |
| Wood chips | 5.2 ct | −69 % | 0.03 |
Three profiles, bills compared (heating oil → biomass)
Single-family home
30,000 useful kWh/year — pellet boiler
- Heating oil bill
- €4,950/year
- Biomass bill
- €2,952/year
- Savings
- €1,998/year
- CO₂ avoided
- 8.8 t/year
Commercial building
350,000 useful kWh/year — mixed pellets + wood
- Heating oil bill
- €57,750/year
- Biomass bill
- €17,500/year
- Savings
- €40,250/year
- CO₂ avoided
- 102.9 t/year
Industrial site
3,000,000 useful kWh/year — wood chips
- Heating oil bill
- €495,000/year
- Biomass bill
- €155,400/year
- Savings
- €339,600/year
- CO₂ avoided
- 882 t/year
What about your home?
This comparison is general. The personalised study starts from your home and your actual heating-oil consumption to estimate your annual savings. Free and with no obligation.
Request a personalised studyGrants & subsidies — Luxembourg
In Luxembourg, the Klimabonus 2026 scheme subsidises the installation of a wood-pellet boiler in an existing residential building. Since 1 January 2026, only PELLET boilers remain eligible — log-fired and wood-chip boilers have been removed from the support scheme (aligning with the EU RED directive).
Klimabonus 2026 — wood-pellet boiler
ActiveUp to €8,000 for a single-family home (€4,000 if no old installation is being replaced); €6,000 per dwelling in a multi-unit building (capped at €40,000). Bonuses: +15% of the grant with a buffer tank (30 l/kW), +€1,000 flat-rate with solar thermal.
Official source ↗Supplementary municipal grants
ActiveVaries by municipality — combinable with the national Klimabonus (some municipalities offer nothing).
Official source ↗
Facts verified on 2026-10-03.
Frequently asked questions
Is heating with pellets cheaper than heating oil in 2026?
Yes. As of 2026-10-29, a useful kWh from pellets costs 9.8 ct versus 16.5 ct for heating oil (market prices, Luxembourg, net calorific value × boiler efficiency), i.e. savings of around 40 % for the same heat. Wood chips go down to 5.2 ct.
How much does a single-family home save per year?
For 30,000 useful kWh/year (a home heated with heating oil), the bill falls from around €4,950 to €2,952 with pellets, i.e. €1,998 saved per year and 8.8 t of CO₂ avoided.
How many years does it take for a pellet boiler to pay for itself?
The payback period depends on the price of your installation, set in your personalised study and then in the quote after the site visit, and on the difference in bills calculated here from the day's prices. We do not publish installation prices outside the study and the quote.
Still heating with oil, fuel oil or gas?
Every winter your bill literally goes up in smoke — and stays at the mercy of oil and gas prices. A Tatano biomass boiler flips the equation: a local fuel, and renewed independence from imported fossil energy. In Luxembourg, around 25 to 43% savings on fuel costs when switching from heating oil to pellets, based on October 2026 prices (official heating-oil price, state discount deducted until 31/12/2026), excluding investment and maintenance; compared with gas, no saving at current prices.
Three profiles, fuel bills compared
Fuel costs only, excluding investment and maintenance. Select your country and your current energy.
- Consumption
- 30,000 kWh
- Fossil bill / year
- €4,950
- Biomass bill / year
- €2,952
- Consumption
- 350,000 kWh
- Fossil bill / year
- €57,750
- Biomass bill / year
- €17,500
- Consumption
- 3,000,000 kWh
- Fossil bill / year
- €495,000
- Biomass bill / year
- €155,400
* Indicative estimates of fuel costs only, for illustration: energy prices and subsidies vary by country and date; investment and maintenance not included. The installation price is set in your personalised study, then in the quote after the site visit.
Methodology & sources
Prices converted into useful kWh via net calorific value × boiler efficiency, from these sources:
- Heating oil: guichet.public.lu (2026-10-28)
- Natural gas: Gaz résidentiel LU (2026-10)
- Propane: guichet.public.lu (2026-10-20)
- Electricity: Eurostat nrg_pc_204 (2026-S1)
- Pellets (ENplus A1): Goffinet Energies Luxembourg (2026-10-01)
- Pellet / wood mix: market estimate, no published price for this country
- Wood chips: Aucun prix de plaquettes publié au Luxembourg (2026-10)
Data refreshed automatically — last updated on 2026-10-29.
Still heating with oil?
Have your current installation assessed: based on your home and your actual consumption, the study compares your heating-oil bill with a Tatano biomass boiler. Free and with no obligation.
Request a personalised studyReady to reduce your energy bill?
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Pierre Jamart
Your Tatano advisor in Luxembourg
Pierre personally answers every request: free study and a firm price after the visit.
- Monday – Friday: 8:00 – 18:00
What your study includes
- Personalised needs analysis
- Firm price after the visit, no surprises
- Estimated annual savings
- Available financial aid and grants
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