Energy-efficient retrofits could become driver for economic growth – dena
Clean Energy Wire
The energy-related modernisation of existing buildings could provide Germany’s ailing economy with a boost, said the German Energy Agency (dena). A higher energy-efficient renovation rate would secure jobs and accelerate the transition to sustainable heating in existing buildings, the agency wrote in a press release.
“This is particularly important in times of economic downturn, especially for regional value creation in the skilled trades,” CEO Corinna Enders said. According to dena, the building sector provides around 3.7 million jobs, primarily in skilled trades, industry and commerce.
A separate report by dena found that Germany's renovation rate has been declining for years, and that only minimal increases were expected for roof, window and facade renovations in 2025.
The organisation’s 2026 Building Report showed that the sector continues to lag behind on emissions reduction targets. In new buildings, heat pumps are the dominating heating technology, but these are only slowly being introduced in existing buildings (4.3% of residential buildings in 2024). Dena said that while the expansion of rooftop solar-PV slowed down in 2025, electricity storage system installations continued to boom.
The buildings sector has continuously failed its emission reduction targets and over half of Germany’s existing homes still rely on fossil gas for heating. The government is currently working on a reform of the country’s Building Energy Act, which governs the phase out of fossil fuels in the heating sector.