Heat pump cubes to accelerate German heating transition • Heat pumps favored by rising German energy costs • Read more about the developments in sustainable heating and cooling in this month's news update from Germany
As gas heating costs in Germany continue to rise, projected to increase by 15% in 2025, heat pumps are emerging as a more economical and climate-friendly alternative. Yet, retrofitting existing buildings remains a major hurdle due to high costs and complexity. A new initiative by Vonovia, Germany’s largest real estate group, aims to change that with a scalable, prefabricated solution.
In partnership with Austrian start-up Enercube and DFA Demonstrationsfabrik Aachen, Vonovia plans to deploy over 1,000 “heat pump cubes” by 2029. These compact, container-sized units are installed outside buildings and replace traditional heating systems. Each cube can supply 10 to 40 apartments and is designed for rapid deployment, even in densely built urban areas. Early pilot projects have shown promising results, with energy costs reduced by 40%, even in colder regions.
The cubes are factory-built and soundproofed, allowing for faster, more standardized installation. DFA will handle serial production, enabling three to six times more heating systems to be replaced in the same timeframe compared to conventional retrofits. By the end of 2025, 30 cubes are expected to be operational, marking a significant step toward decarbonizing Germany’s building sector.
Read more in article from Handelsblatt
Heating costs in Germany are expected to rise significantly in 2025 across all energy sources, according to the latest heating cost index by co2online. For a typical 70-square-meter apartment, heating with gas will cost around €1,180—15% more than in 2024. District heating and oil will also see increases, while even heat pumps and wood pellets are becoming more expensive, albeit from a lower base.
The main drivers are higher energy prices and a colder winter earlier this year. While 2024 saw a drop in heating costs due to milder weather, the long-term outlook is less optimistic. co2online forecasts that heating with gas and oil could become three times more expensive over the next 20 years, driven by rising CO₂ prices and declining customer bases that increase network fees. District heating and wood pellets are expected to double in cost, while heat pumps are projected to remain the most cost-effective option, thanks to favorable policy and growing renewable electricity supply.
Despite the rising costs, many households still have untapped savings potential. co2online estimates that nine out of ten households could save around €400 annually through simple behavioral changes and minor technical upgrades. However, substantial savings will require deeper investments, such as building envelope insulation or switching to renewable heating systems—highlighting the urgency of modernization in Germany’s aging building stock.
Read more in article from tagesschau
To stay updated on news for sustainable heating and cooling, follow us on LinkedIn, and subscribe to our Newsletter.
Sweden is at the forefront of decentralised heat networks technology. Our aim for “Sustainable Heating & Cooling by Sweden” is to facilitate knowledge sharing between British, French and Swedish stakeholders and develop and encourage environmental and economic best practice.
To find out how we can help you and your organisation, please contact our London or Paris-based “SHC” teams. We can introduce you to leading consultants, suppliers of technology and services who will be pleased to share know-how of the development of sustainable heating & cooling solutions.
