85 percent of the energy consumed by Germany’s private households is used for heating and hot water. With two thirds of the heating systems in Germany considered inefficient, upgrading old systems is a growing priority. The generous government incentives and tight building codes mean opportunities abound for heat pump manufacturers (air, ground and water-source), solar-thermal, and district heating solution providers. Energy efficiency service providers (eg. hydraulic balancing) will also find an eager market in Germany.