The Infrared Heating Market in Germany: New Perspectives for a Technology-Neutral Heating Transition

The German heating market is undergoing a profound transformation. After years of intense debate about the heating transition – from fossil fuels to renewable, electric energy – two additional questions are taking center stage alongside climate protection: How can the transformation of the building sector be implemented in an economically viable manner? And how can construction and housing remain affordable?

This development is of particular significance for the infrared heating industry. This is because both the political framework and the discussion within the housing and real estate sectors are increasingly opening up perspectives on different technological approaches to decarbonizing buildings.

New Legal Leeway for Infrared Heating

A key milestone is the Building Modernization Act (Gebäudemodernisierungsgesetz / GModG), whose major provisions took effect on July 29, 2026. The GModG replaces the previous Building Energy Act (Gebäudeenergiegesetz / GEG) and changes the regulatory framework for the German heating market.

In particular, the previous blanket requirement that newly installed heating systems must generate at least 65 percent of the heat they provide from renewable energy sources has been eliminated. Instead, the law places greater emphasis on technology neutrality and freedom of choice for building owners.

IG Infrarot Deutschland e.V. views this development as an opportunity for the market. During the legislative process, the association had advocated for a greater emphasis on evaluating electric infrared heaters based on cost-effectiveness, system efficiency, and proportionality, as well as for the practical implementation of technology neutrality.

More Lenient Requirements for Existing Buildings

Another change concerns the use of direct electric heating systems – and thus also infrared heating systems – in existing residential buildings.

Under the previous legal provisions of the Building Energy Act, different requirements for structural thermal insulation applied depending on which heating system was already installed in the building. If a water-based heating system was installed, the building’s thermal insulation had to fall at least 45 percent below the statutory requirements for thermal insulation in order for a direct electric heating system to be installed. In other cases, a 30-percent threshold generally applied.

This additional 45-percent requirement for existing buildings has been eliminated by the Building Modernization Act. According to Section 46 of the GModG, the 30-percent threshold now applies uniformly to existing residential buildings – regardless of whether a water-based heating system was previously in place.

Exceptions also apply to certain buildings and use cases: among others, for buildings with no more than two apartments, one of which is occupied by the owner, as well as when replacing existing single-room electric heaters.

For new buildings, the higher 45 percent thermal insulation requirement generally remains in effect. The exceptions apply here as well.

Under the Building Modernization Act, the primary energy factor for grid-connected electricity will be further reduced from the current 1.8 to 1.5. This regulation takes effect on January 1, 2027. This value is incorporated into the energy assessment under the GModG and influences how the use of electricity is evaluated in the legally required verification process. A lower factor means that the calculated primary energy demand when using electricity is lower than under the previous assessment. The lower primary energy factor thus enhances the competitiveness of infrared heating systems in the energy verification process.

Option for Exemptions for Alternative Heating Concepts Remains in Place

Furthermore, Section 102 of the GModG retains the option – already familiar from the Building Energy Act – to be exempted from certain legal requirements upon application.

The prerequisite is that the objectives of the law are achieved to a comparable extent through other measures. These include, in particular, the reduction of greenhouse gas emissions, the increased use of renewable energy and unavoidable waste heat, and the contribution to national climate protection goals. At the same time, the principle of economic efficiency must be taken into account.

This leaves room for alternative technical concepts and an assessment of each specific case. This can be significant for innovative or particularly cost-effective building concepts, provided it can be demonstrated that the legal requirements are met.

Overall, IG Infrarot Deutschland expects the new legal framework to provide a positive boost to the German infrared heating market. What matters most is not so much the preference for a single technology as a regulatory framework in which different solutions can be evaluated based on their actual suitability for specific buildings and uses.

Affordable Construction and Housing Are Becoming Market Drivers

In addition to regulatory changes, one topic in particular is currently shaping the debate in Germany: affordable construction and housing.

The country, with a population of approximately 83.4 million, urgently needs new housing, especially in major cities and other sought-after residential areas. At the same time, high construction and financing costs, as well as significantly increased energy and utility costs, have raised the financial burden of housing. Energy efficiency and climate protection remain central goals, but must be more closely linked to economic viability and social sustainability.

This raises the question for policymakers, the housing sector, and real estate companies: How can buildings be planned, constructed, and operated more simply and cost-effectively?

One approach involves simplifying building utility systems. This is another reason why infrared heating systems are gaining more attention. Their comparatively simple technical infrastructure can help reduce investment and building utility costs when integrated into suitable building designs.

As a result, the choice of heating system is increasingly becoming a matter of construction and housing costs. Especially against the backdrop of the urgent need for new housing construction and the modernization of the existing building stock, the discussion about simpler and, above all, maintenance-free building services can make an important contribution to opening up new avenues for affordable housing.

Openness to Different Technologies Is Gaining Importance

A key trend is thus emerging in Germany. The discussion about the heating transition is increasingly shifting from the question of which specific heating technology should be politically favored to the question of which solution is economical, climate-friendly, and practical for a specific building.

This is a significant change for the infrared heating industry. Infrared heating systems are increasingly being viewed not just as a niche or supplementary solution, but as a potential component of modern electric building concepts. At the same time, a more comprehensive economic assessment of heating systems is gaining importance.

In addition to energy consumption, investment costs, maintenance, and the complexity of building services also play a role in the actual cost of living.

Current developments could therefore mark an important turning point for the German infrared heating market. Opportunities arise particularly where electrification, simple building technology, and cost-effective construction converge.