Lithuania Adds €10 Million to Residential Heating Replacement Program
Lithuania has allocated another €10 million to help households replace inefficient biomass and fossil-fuel heating equipment. Grants cover up to 50% of a fixed reference cost for qualifying heat pumps and class 5 biofuel boilers.
New funding opens for household heating upgrades
Lithuania has added €10 million to its residential heating-equipment replacement program, allowing homeowners to seek compensation after replacing old and inefficient biomass or fossil-fuel systems. Applications are administered by the Lithuanian Energy Agency. Energy Minister Lukas Savickas said total funding allocated to residential heating replacements this year has reached a record €37.8 million.
Compensation can cover up to 50% of the fixed equipment cost established using market prices. Kauno Diena reports that the expected average payment is about €3,500 for a heat pump and about €1,500 for a new class 5 biofuel boiler. Eligible heat-pump configurations include ground-to-water, water-to-water, air-to-water and air-to-air systems, although eligibility for air-to-air equipment depends on the building and the heating system being replaced.
Heat pumps and biofuel boilers define the market
Funding is available only after new, unused equipment has been installed. Qualifying products include certified class 5 biofuel boilers and heat pumps intended to heat the dwelling. For one- or two-apartment residential buildings and garden houses with water-based heating systems, the new equipment must have been installed no earlier than July 26, 2023. Separate rules allow applications for certain air-to-air installations and homes in apartment or other-purpose buildings where equipment was replaced no earlier than December 16, 2024.
The latest calls are no longer divided by region. Instead, the agency will operate two application tracks: one for replacing biomass-fired equipment and another for systems that used fossil fuels. Owners of systems that consumed both must choose the call corresponding to the fuel used most often. Air-to-air heat pumps are not supported when replacing a boiler that supplied a water-based radiator system. In apartment buildings without district heating, class 5 biofuel boilers are also excluded, leaving heat pumps as the supported option.
Program could add 166 MW of heating capacity
Kauno Diena, citing the Energy Ministry, says the state program is expected to reach about 35,000 households and install 166 MW of additional heat-generation capacity. More than €112.4 million in state funding is planned through 2029. Applications are scheduled to open at 14:00 on the first working day of every quarter, giving equipment suppliers and installers a recurring pipeline rather than a single funding window.
Published totals differ slightly between the two reports. According to 15min.lt, more than 21,700 residents have already upgraded their systems and received over €71 million in compensation. Kauno Diena puts participation since the program began in 2023 at about 21,800 residents and payments at nearly €71.3 million. It says roughly 14,400 participants replaced biofuel equipment, while about 7,400 moved away from gas, coal or liquid fuels. In 2025, 10,438 polluting heating units were replaced, while almost 8,400 old boilers had been replaced by the end of September this year, according to 15min.lt. The renewed allocation should sustain demand for heat pumps, certified biofuel boilers, installation work and related components, while gradually reducing household demand for fossil heating fuels and older biomass equipment.
