Pellets vs heating oil: the cost comparison
Price per useful kWh, annual savings and return on investment — calculated from official 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 | 17.9 ct | ref. | 0.267 |
| Natural gas | 9.3 ct | −48 % | 0.202 |
| Propane | 15.9 ct | −11 % | 0.231 |
| Electricity | 20.2 ct | +13 % | 0.12 |
| Pellets (ENplus A1) | 9.5 ct | −47 % | 0.03 |
| Pellet / wood mix | 5.0 ct | −72 % | 0.03 |
| Wood chips | 4.8 ct | −73 % | 0.03 |
Three profiles, bills compared (heating oil → biomass)
Single-family home
30,000 useful kWh/year — pellet boiler
- Heating oil bill
- €5,370/year
- Biomass bill
- €2,841/year
- Savings
- €2,529/year
- CO₂ avoided
- 7.1 t/year
Commercial building
350,000 useful kWh/year — mixed pellets + wood
- Heating oil bill
- €62,650/year
- Biomass bill
- €17,500/year
- Savings
- €45,150/year
- CO₂ avoided
- 83 t/year
Industrial site
3,000,000 useful kWh/year — wood chips
- Heating oil bill
- €537,000/year
- Biomass bill
- €144,000/year
- Savings
- €393,000/year
- CO₂ avoided
- 711 t/year
Grants & 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 2026-10-16, a useful kWh from pellets costs 9.5 ct versus 17.9 ct for heating oil (market prices, Luxembourg, net calorific value × boiler efficiency), i.e. savings of around 47 % for the same heat. Wood chips go down to 4.8 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 €5,370 to €2,841 with pellets, i.e. €2,529 saved per year and 7.1 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 30 to 50 % cheaper per kWh, a price that holds steady year after year, and renewed independence from imported fossil energy.
Three projects, three returns on investment
The higher the consumption, the faster the switch to biomass pays for itself. Select your country and your current energy.
- Consumption
- 30,000 kWh
- Fossil bill / year
- €5,370
- Biomass bill / year
- €2,841
- Consumption
- 350,000 kWh
- Fossil bill / year
- €62,650
- Biomass bill / year
- €17,500
- Consumption
- 3,000,000 kWh
- Fossil bill / year
- €537,000
- Biomass bill / year
- €144,000
* Indicative 2026 estimates, for illustration: energy prices, installation costs and subsidies vary by country, project and date. The installation costs shown exclude subsidies. Only a Tatano thermal study provides contractual figures based on your actual consumption.
Methodology & sources
Prices converted into useful kWh via net calorific value × boiler efficiency, from these sources:
- Heating oil: guichet.public.lu (2026-10-14)
- Natural gas: Eurostat nrg_pc_202 (2026-S1)
- Propane: guichet.public.lu (2026-10-15)
- Electricity: Eurostat nrg_pc_204 (2026-S1)
- Pellets (ENplus A1): Goffinet Energies Luxembourg (2026-08-15)
- Pellet / wood mix: market estimate, no published price for this country
- Wood chips: market estimate, no published price for this country
Data refreshed automatically — last updated on 2026-10-16.
Ready to reduce your energy bill?
Receive a free, no-obligation personalized study for your heating project.
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
No obligation • Reply within 24h