Retrofit Report 2025: The value of retrofitting with an EMS

Retrofit report 2025

Europe has millions of unconnected, analog assets. Retrofitting them with smart EMS intelligence unlocks massive value for OEMs, installers, households and the energy transition.

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Executive summary

Europe’s biggest opportunity isn’t new installs, it’s what already exists

01

More than 63 million PV systems, heat pumps and wallboxes are already installed in European homes, yet 70–85% remain unconnected. Retrofitting with an EMS unlocks these analog devices’ full value by transforming them into smart, grid-friendly systems.

02

Retrofitting with a local EMS gateway or via cloud-to-cloud helps OEMs, installers and utilities acquire and retain customers, upsell existing solutions and expand into previously inaccessible markets, all while boosting operational efficiency and supporting grid resilience.

03

A gridX survey of 265 asset owners shows 66% plan to add more devices within two years. Households want batteries in Germany and the Netherlands, EV chargers in the UK – and 88% want everything to work seamlessly together. A smart EMS makes it happen.

04

Combining existing assets with a battery, dynamic tariffs and an EMS unlocks major annual gains: up to €782 (NL), £1,492 (UK) and €1,301 (ES). In Germany, optimized setups with §14a Module 3 can even bring energy bills below zero.

05

In 2032, over 1 million German PV systems will leave fixed EEG tariffs – joining millions more facing true market prices. Meanwhile, 34% of Dutch homes will soon lose net metering (Salderingsregeling). The result: rapidly rising demand for storage and smart energy control.

06

With adaptable integrations, fast commissioning and strong OEM partnerships, XENON connects existing assets without replacements – turning complexity into opportunity and accelerating the energy transition at scale.

Smart retrofits are the next phase of the energy transition

Europe’s installed base is huge – Germany alone has roughly five million households that could be retrofitted today; the Netherlands nearly four; Spain and the UK over three. As distributed energy assets continue to scale, players who act first to make these analog systems smart will capture the largest share of a rapidly expanding market. Retrofitting can bring the energy transition to scale, but it requires a digital backbone capable of coordinating diverse legacy assets. The opportunity is massive, and unlocking it starts with connecting what already exists.

End users are eager to upgrade and connect

Retrofitting demand is set to surge as households expand their energy systems. In a gridX survey of 265 asset owners, 66% plan to buy additional hardware within the next two years. The growth opportunities differ by market: in Germany, 37% intend to add a battery compared to nearly 50% in the Netherlands. In the UK, 38% plan to install an EV charger and 29% rooftop solar. This strong investment intent in already interested households highlights a rapidly emerging retrofit opportunity for providers who can connect, optimize and scale these assets intelligently.

Retrofitting to a multi-asset setup can reap large financial gains

Savings stack quickly when households expand and optimize their existing setups with a smart energy management system (EMS). In Germany, households that already have a heat pump and choose to add a smart EMS, PV system, battery and dynamic tariffs can score major financial benefits. Combined with §14a EnWG Module 3 compensation, these homes can save up to €2,149 per year. In the most advanced configurations, energy bills can even go negative, meaning households earn money from using their devices flexibly.