Around 83% of commercial buildings in major UK cities fall below EPC B, the standard widely expected for 2030 regulations, while an estimated 55–58% of UK homes have an EPC rating of D or lower. Achieving Net Zero will therefore be challenging, but not impossible. Gareth Ash, Marketing Manager at Danfoss, argues that digitalisation will be a decisive enabler of decarbonisation progress.

At Danfoss, we have talked a lot about the importance of hydronic balancing in improving energy efficiency in a broad range of building types from single-family homes to multi-family apartment blocks and from commercial to public buildings, and it is critical. However, even well-balanced systems require ongoing optimisation. Real-time insight into system performance, how energy flows, where inefficiencies arise, and how usage changes over time, is also essential.

Digitalising hydronic systems using IoT-ready actuators like NovoCon, which integrate temperature sensors and provide real-time flow data directly to the cloud enables building operators to collect detailed operational data. Platforms such as Leanheat Building can then analyse this information to optimise energy use, predict maintenance needs, and maintain comfort efficiently. Crucially, the data also empowers occupants, helping them understand and adjust their energy use to balance comfort and cost.

Making heating smarter

In homes, smart heating technologies such as Ally integrate with underfloor systems, wireless radiator thermostats, and boilers to deliver precise temperature control tailored to user habits. Remote control and automated schedules can deliver energy savings of up to 30%, while maintaining comfort.

Importantly, many digital solutions can be retrofitted into existing buildings, a critical factor given that 35% of EU buildings are over 50 years old and renovation rates remain low. Digital upgrades therefore offer a fast, cost-effective route to reducing emissions across ageing building stock.

Demand-side flexibility

Digitalisation also enables buildings to become active participants in the energy system. By shifting when energy is used, not just how much, buildings can align demand with renewable supply. Model predictive controls, for example, use weather forecasts, occupancy data, and system behaviour to anticipate heating and ventilation needs. Trials in Finland covering 100,000 flats reduced peak power demand by 10–30% and energy costs by up to 20% without compromising comfort.

At scale, demand-side flexibility could cut tens of millions of tonnes of CO₂ annually while reducing energy system costs.

Digital tools can also integrate individual buildings into wider energy networks. Utilities using AI-enabled platforms can monitor demand across connected buildings, adjust supply temperatures, and reduce peak loads. Projects in cities such as Hanover and Copenhagen have demonstrated significant reductions in energy consumption and network stress through data-driven optimisation.

Driven by legislation

However, policy is an essential driver in the uptake of these ‘greener’ technologies. While EU directives such as the EPBD and EED no longer apply directly in the UK, their principles have been embedded in domestic regulation, including energy audits, minimum efficiency standards, and EPC requirements. The regulation of heat networks and funding for low-carbon heating infrastructure further signal the direction of travel.

Waste heat is a key component of the UK’s Net Zero strategy, backed by around £500 million of investment in heat networks through the Green Heat Network Fund, which aims to reduce reliance on fossil fuels for home heating. In its recent report on the benefits of clean energy, the UK Government highlighted waste heat recovery, alongside carbon capture, utilisation and storage (CCUS),  as crucial to cutting national emissions. Industrial heating alone accounts for roughly 14% of UK emissions, and a significant proportion of industrial energy is currently lost as waste heat that could instead be captured and reused. Since January this year, heat networks in Great Britain have also been formally regulated, strengthening oversight and consumer protection. Together, these measures underline the substantial opportunity that recovering and repurposing waste heat presents for large-scale decarbonisation.

Danfoss case study
Waste heat recovery has played a crucial role in our own decarbonisation efforts. At the Danfoss headquarters in Nordborg, Denmark, waste heat is captured from the on-site data centre, exchanged via the campus’ bi-directional heat transfer station and then supplied to the local district energy network. This helped us achieve CO2 neutrality in 2022. We’ve applied this approach to 21 of our factories in nine countries, resulting in an energy savings of 45%.

In addition to complying with the legislative requirements listed above, our internal decarbonisation efforts also help demonstrate the compelling business case for energy efficiency. Our global energy savings programme, which involves implementing measures such as waste heat recovery and hydronic balancing at our production sites, has generated annual cost savings of €9 million and a payback period of less than three years.

Making buildings visible, controllable, and responsive unlocks efficiency gains that would otherwise remain inaccessible. Combined with policy, infrastructure investment, and behavioural change, digitalisation provides one of the fastest and most scalable routes to reducing emissions across the built environment.

For further information, please visit: www.heating.danfoss.com