Serial refurbishment gains in importance

13.05.2026

Source: E & M powernews

The Dena Building Report 2026 shows increasing demand for heat pumps and serial renovations. Municipal heat planning is also making progress, according to the German Energy Agency.

The market for renewable heat continues to grow, according to the German Energy Agency (Dena). This is evident from its updated Building Report 2026. According to the report, heat pumps accounted for 48% of heating systems sold in 2025. At the same time, the proportion of gas heating systems fell to 44 percent. According to the data, the development is benefiting from the federal subsidy for efficient buildings (BEG), among other things.

There is also a clear trend in the individual measures subsidized. According to the data, around 85 percent of BEG measures for heat generators are for heat pumps. Homeowners are thus increasingly investing in technologies that will make them less dependent on fluctuating oil and gas prices.

Serial renovations are picking up speed

The report also points to a continuing high demand for serial renovations. In 2025, more than 1,000 funding applications were once again submitted for projects with prefabricated façade elements. The method has so far mainly been used for apartment buildings. According to the building report, this has already enabled more than 6,000 residential units to be modernized in terms of energy efficiency.

With a share of around 24 percent of all EH55 and EH40 projects, serial refurbishment has now established itself as a relevant component of energy-efficient building refurbishment. The construction method is intended to shorten planning and construction times by prefabricating façade and roof elements on an industrial scale.

Despite the progress made, the authors believe that heat and final energy consumption in the building sector has not yet fallen fast enough to achieve the climate targets. It is therefore important to have a reliable political framework and stable funding programs. The announced implementation of the Building Modernization Act is particularly important in this regard. This should create investment security for owners, the housing industry and the skilled trades.

Municipal heating planning 56 percent complete

Municipal heating planning is also making progress. According to data from the Municipal Heating Turnaround Competence Center, around 56% of large municipalities with more than 100,000 inhabitants had completed their heating planning by the end of the first quarter. The remaining 44 percent were still in the process.

According to the competence center, 84 percent of cities and municipalities with between 10,000 and 100,000 inhabitants have already started or completed their heat planning. Smaller municipalities are also catching up: According to the data, 49 percent there are now in the planning process or have already completed it.

Municipal heat planning is regarded as the central basis for the expansion of climate-friendly heat supply. The aim is for cities and municipalities to determine which technologies and infrastructures can be used in individual neighborhoods in the future. These include heating networks, heat pumps and the use of industrial waste heat.

The Dena Building Report as of April 2026 is available online.

Author: Susanne Harmsen