Background Overview of the Heat Transition in Germany’s Federal States

The transition toward climate-friendly heating systems remains one of the most challenging aspects of Germany’s broader energy transformation. While renewable electricity has achieved substantial market penetration, renewable heating systems accounted for just over 18 percent of total heat supply in 2024.

Progress in the heat transition varies widely across federal states. Differences in geography, building structures, and existing infrastructure strongly influence regional pathways toward decarbonization of heat. Municipal heat planning has emerged as a key instrument for coordinating this transformation at the local level.

Several regions have already introduced mandatory heat planning for municipalities, resulting in higher planning coverage and clearer long-term strategies. At the national level, climate-neutral heating is targeted for 2045, although many municipalities are pursuing earlier timelines.

District heating is expected to play a growing role in future heat supply. Currently covering less than ten percent of total demand, renewable district heating is projected to expand significantly, supported by biomass, geothermal energy, and waste heat.

Heat pumps have become the dominant technology in new residential construction, particularly in regions with lower building density. In dense urban areas, district heating remains more prevalent due to high heat demand concentration.

Overall, the heat transition in Germany highlights the importance of region-specific solutions and coordinated policy frameworks to accelerate the adoption of renewable heating technologies.