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). Luxembourg basis; heating oil and propane = official maximum prices of the day.
| 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 | 15.5 ct | −13 % | 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 — Allemagne
In Germany, replacing a heating system with a biomass boiler (pellets, logs, wood chips) in an existing residential building is subsidised by KfW (programme 458, Federal Funding for Efficient Buildings).
KfW 458 — heating grant for private individuals (BEG EM)
ActiveBase grant of 30 % of eligible costs, plus bonuses depending on the situation (climate speed, household income); up to 70 %, or 80 % with the income bonus. Eligible costs capped at €28,000 for a single-family house.
Official source ↗
Facts verified on 2026-10-14.
Frequently asked questions
Is heating with pellets cheaper than heating oil in 2026?
Yes. As of 2026-10-14, a useful kWh from pellets costs 9.5 ct versus 17.9 ct for heating oil (official Luxembourg prices, 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 official 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
Heating oil and propane: official maximum prices published by the Luxembourg government (guichet.public.lu), converted into useful kWh via net calorific value × boiler efficiency. Gas and electricity: market estimates (liberalised markets, no regulated price). Pellets, mix and wood chips: supplier price surveys. Data refreshed automatically — last updated on 2026-10-14.
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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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