On Thursday 16 July 2026, Luxembourg’s Ministry of the Environment, Climate and Biodiversity presented the main new features of the “Klimabonus Wunnen” support scheme.
Following the adoption by the Chamber of Deputies on Wednesday 15 July of the draft law on the aid scheme for promoting sustainability, the rational use of energy and renewable energies in the housing sector, Luxembourg’s Minister of the Environment, Climate and Biodiversity, Serge Wilmes, officially presented the main new features of the “Klimabonus Wunnen” scheme.
According to the Ministry of the Environment, Climate and Biodiversity, the extension of “Klimabonus Wunnen” marks a new stage in the energy transition of the residential sector and directly contributes to the implementation of the Integrated National Energy and Climate Plan (PNEC). It extends the financial aid scheme until the end of 2030, strengthens financial incentives for energy renovations and renewable technologies, simplifies access to support and introduces a pre-financing procedure for energy renovation works and the installation of heat pumps.
The new provisions will apply retroactively from 1 January 2026, with pre-financing available from 1 January 2027.
The scheme also incorporates several measures agreed as part of the tripartite agreement of 8 June 2026, including a temporary increase in financial support for heat pumps, energy advice and energy renovation works.
Increased support for energy renovation
The ministry noted that given its importance for the energy consumption of existing buildings, energy renovation remains a central pillar of the scheme.
The level of support has been increased, with particular emphasis on ecological insulation materials. Incentives for ambitious energy renovations, which can be carried out in several stages, will be maintained.
The main new features include:
• easing certain requirements relating to the fixing of insulation materials;
• a new subsidy for installing ecological thermal insulation with mechanically fixed non-fossil cladding;
• a new subsidy for green external façades or roofs;
• a reduction in the percentage of the reference energy area that must be ventilated in multi-unit buildings.
Investments and services invoiced between 1 January 2026 and 31 December 2035 inclusive are eligible under the new scheme, provided that an initial application for a principle approval was submitted between 1 January 2026 and 31 December 2030.
Support for energy advice
The new scheme also strengthens financial support for energy advice, both during the preparation phase of works and for occasional assistance with implementation by an energy adviser.
Support can now be requested when submitting the application for principle approval, without having to wait until the works have been completed.
Promoting technical installations using renewable energy sources
The new scheme aims to make alternatives to fossil fuels, such as heat pumps, connections to district heating networks and wood pellet boilers, more accessible.
Support will now be granted in the form of fixed amounts, regardless of the capacity of the installations.
The new scheme also provides for:
• the integration of the former oil boiler replacement bonus (“Masuttersatzprogramm”) into the basic amounts of financial support;
• the introduction of a new bonus for replacing an oil-fired boiler located in a drinking water protection zone;
• the introduction of new financial support for Home Energy Management Systems (HEMS), where the invoice is issued from 1 October 2026 onwards.
Investments and services invoiced between 1 January 2026 and 31 December 2030 are eligible under the new scheme. This deadline is extended until 31 December 2035, provided that the investments and services concerned are carried out together with the energy renovation of an existing building.
Additional financial support resulting from the tripartite agreement
Heat pumps: An additional increase of €2,000 will be granted for heat pumps installed in existing residential buildings and ordered between 1 January 2026 and 30 June 2027.
Energy advice: Financial support for energy advice will increase by €300 for a single-family house and by €500 for a multi-unit building. This increase applies to energy advice services related to energy renovation works for which an application for principle approval is submitted between 1 January 2026 and 30 June 2027.
Energy renovation: Support for energy renovation works will benefit from an increase of around 15% to 20%. Eligible works are energy renovation projects for which an application for principle approval is submitted between 1 January 2026 and 30 June 2027 and for which the invoice is issued no later than 31 December 2030.
A new pre-financing system: From 1 January 2027, the pre-financing mechanism already available for photovoltaic installations will be extended to heat pumps and energy renovation measures. Under this system, households will no longer have to pay the full investment amount upfront before receiving the subsidy. The company will deduct the support directly from the final invoice and will then be reimbursed by the State.
Companies wishing to participate in the pre-financing system must first register in a dedicated register.
The pre-financing mechanism is an option that will coexist with the standard “Klimabonus Wunnen” subsidy application procedure. The final customer can therefore choose between the two options, with the amount of the subsidy remaining identical.
“Climate change is being demonstrated by the extreme heat events we are experiencing today. With the new ‘Klimabonus Wunnen’, we are encouraging investments that reduce CO₂ emissions, strengthen the resilience of homes and buildings while improving quality of life. Extending the scheme until 2030 also provides the planning certainty that households and the sector need to carry out projects with confidence,” emphasised Minister Serge Wilmes.
