Installing a new heat production unit in a company

The heating installation: an important leverage point in the energy transition

The heat production unit is a major leverage point for a successful energy transition. As its primary purpose is to supply heat for comfort and operational needs, the heating system must be scaled to provide the temperature levels and necessary quantities to keep the business running. Nowadays, there are heat production systems that are adapted to each temperature level are flexible in terms of power and are environmentally friendly.

Definition of the company’s heating requirements

Analysis of the current situation

• Determine the different parameters of the current installation, e.g. age, general condition, temperature level, consumption and associated costs, etc.
• Identification of new requirements for heat production that may allow a reduction or increase in rated capacity
• Assessment of whether the current heat production method is still appropriate for the company’s current situation
• Analysis of regulatory requirements and potential new permitting obligations

Needs assessment by a qualified tradesman (heating installer) or by an consulting engineering office

• Analysis of general heating requirements in accordance with DIN EN 12831.
• Analysis of the power required by heat-consuming appliances
• Analysis and reassessment of the temperature levels required for the various applications.

Identification of the solution and verification of the feasibility of the heating installation project

Definition of the solution

• Based on the needs analysis, a solution is defined in collaboration with a supplier, a consulting engineering office or with a qualified professional (heating installer).
• In addition to the main heat production unit, recovering waste heat and the unit with solar thermal heating must also be taken into consideration.

Verification of the proposed heating installation regarding operating permits

When adapting existing installations and particularly when setting up new installations, check the nomenclature of classified establishments.

Drawing up specifications and requesting tenders for the heating system project

Subsidy application

Government subsidies

Fit 4 Sustainability programme

The Fit 4 Sustainability programme provides co-financing for environmental audits and action plans on one or more topics selected by the company (energy, GHG, waste, water, etc.).
Aid of up to 60%, 70% and 80%, depending on the size of the company, for the fees associated with carrying out an environmental study (energy audit and/or carbon footprint assessment) and a detailed, costed action plan to reduce its consumption/GHG emissions (medium- and long-term investments, ROI, etc.) – open to SMEs and large companies (except those that must carry out studies required by the environmental authorities, including mandatory energy audits)
For questions: Luxinnovation

SME Packages – Sustainability

• Financial Aid for small and medium-sized enterprises covering up to 70% of eligible costs for the implementation of a project aimed at reducing the environmental impact. The eligible project budget must be in a range from 3.000 € to 25.000 € excl. VAT.
• For more information:
  • Chambre des Métiers for craft companies
  • Chamber of Commerce for businesses in the non-crafts sectors

Aid for environmental protection

The law of 8 December 2025 on the renewal of the aid scheme for environmental and climate protection provides for the granting of investment aid to SMEs and large companies established in Luxembourg, with an establishment authorisation, and carrying out projects that contribute to environmental or climate protection.

This aid is intended to support:

• Energy production from renewable sources
• Renewable hydrogen production
• High-efficiency cogeneration
• Storage (electricity, heat, biogas) under specific conditions

The following maximum rates apply:

Regardless of their size, companies can receive aid upon request if they meet the conditions described in Article 8 of this law, provided that the aid exceeds €50,000 for SMEs or €100,000 for large companies.
They may also participate in regular calls for projects, which will be announced below when they become available. When aid is granted through a competitive process, the aid rate may reach up to 100% of eligible costs.
The General Directorate – State Aid and Company Financing will verify the eligibility of applications.

• For support or questions regarding the process, please contact Luxinnovation.

SME scheme – Subsidies for consultancy services

• Support for small and medium-sized businesses, up to 50% of external consultancy fees
• Examination of project eligibility and organisation granting the subsidy: Ministry of the Economy (Department for Support to SMEs).
• For further information:
  • House of Entrepreneurship of the Chamber of Commerce
  • Chambre des Métiers

N.B. Government subsidies cannot be accumulated for the same project.

Application for subsidies from electricity and natural gas suppliers

As of 2015, natural gas and electricity suppliers are obliged under the Commitment Mechanism to generate some energy savings among their consumers. Since then, energy suppliers have been offering monitoring and advisory services as well as subsidy programmes for consumers to implement energy efficiency measures.

The providers offering this service to companies are as follows:

• Enoprimes Enovos + SUDenergie
• SUDenergie
• Sudstroum

It should be noted that the subsidies from suppliers can be accumulated with any state subsidies for the same project.

Tax relief for investment in an ecological and energy transition project

The tax relief is calculated based on the investments and operating expenses incurred as part of an ecological and energy transition project.
The tax relief rate is set at 18% and is applied directly to the amount of tax due.
This deduction can be combined with standard state subsidies.

For the project to be eligible, it must meet at least one of the following objectives:

• Improve the energy efficiency of a production process
• Improve the material efficiency of a production process
• Decarbonise a production process
• Reduce air pollution at the production site (excluding CO2 emissions)
• Produce or store renewable energy for self-consumption
• Promote the extended use of products through reuse

For certain objectives, minimum thresholds must be met.
To verify your eligibility and ensure that these thresholds are satisfied, it is recommended that the impact of the measure on one of the above conditions be certified by an expert or a design office.

Further details and conditions: Guichet.lu
For questions: Ministry of Economy – Bonus

After the heating installation has been carried out

• Inspection of the installation by a representative of the Chambre des Métiers
  • Approval of any new heating installation using diesel, solid fuel or gas by the SCRB Department of the Chambre des Métiers mendatory.
• Scheduling of regular maintenance and inspection of the installation.