Energy efficiency of buildings in Ukraine: 85% of the housing stock needs modernization
The housing stock is one of the largest energy consumers in Ukraine. According to available estimates, it accounts for 33.2% of final energy consumption, second only to industry, which accounts for 34%. The housing sector remains one of the least modernized, but at the same time has every opportunity to improve energy efficiency.
Every year, the state spends 92 billion hryvnia on utilities, and the energy saving potential is 50%. This means that these funds could remain in the state budget or in family budgets instead of being spent on utilities.
According to the State Agency for Energy Efficiency, energy efficiency is a national priority that contributes to security, the economy, and people's well-being. Therefore, we analyzed the state of the housing stock in Ukraine, its energy efficiency level, key barriers, and opportunities for modernizing apartment buildings, as well as innovations that Ukrainian developers are already implementing to make buildings energy efficient.
The state of the housing stock in Ukraine and how it affects energy efficiency
According to a report by the Ministry of Community, Territory, and Infrastructure Development of Ukraine, as of December 2023, there were over 9.1 million residential buildings in Ukraine, of which over 181,000 were multi-family buildings.
Structure of the housing stock by year of construction
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The majority of this housing stock was built during the Soviet era. Over 90% of apartment buildings were built before 1991. The largest share was built between 1945 and 1980. These are the very buildings that were built according to standard designs with minimal or no energy efficiency requirements.
Ukraine's national housing stock is outdated and is being renovated too slowly: over 85% of buildings were constructed before 2002, are physically worn out, and have low energy efficiency.
At the same time, 80–90% of buildings that exist today and have not suffered significant damage will still be in use in 2050, making modernization critically necessary.
Despite this, the pace of thermal modernization in Ukraine remains extremely slow. As a result, the vast majority of buildings have poor thermal insulation, worn-out engineering systems, and outdated heating and ventilation solutions.
The average energy consumption of old apartment buildings reaches about 194 kWh per square meter, which exceeds the European average by 30–50%. The main heat losses occur through the building envelope and inefficient operation of engineering networks.
During blackouts, such buildings are also the first to lose heat. The most dangerous places to live during heating outages are five-story panel buildings, known as "Khrushchevkas." Brick buildings have better heat retention properties than panel buildings. Modern houses built in the last 10-15 years are the absolute leaders in energy efficiency, experts say. In addition, engineering networks are better protected in modern houses.
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Due to the full-scale war and risks to energy infrastructure, the problem of excessive energy consumption in residential buildings has become particularly relevant. In such conditions, the modernization of buildings and the construction of new housing in accordance with modern energy efficiency standards are becoming one of the key elements of energy security.
Energy efficiency classes in Ukraine
The Ukrainian law "On Energy Efficiency of Buildings," adopted in 2017, became the basis for the introduction of energy efficiency certification for new buildings, renovated buildings, state and municipal buildings, etc. It defines which buildings must have an energy efficiency certificate, the minimum requirements for energy-efficient buildings, how certification is carried out, etc.
The practical mechanism for implementing these requirements was laid down in Orders No. 172 (2018) and No. 169 (2018) of the Ministry of Community, Territory, and Infrastructure Development, which defined the procedure for obtaining a certificate, formulas and methods for calculating specific energy consumption, and determining the energy efficiency class of buildings.
In Ukraine, as in many EU countries, a 7-point energy efficiency classification scale is used: from A to G, where A represents the most energy-efficient buildings.
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It should be noted that the energy efficiency class of a building is determined not only by its energy consumption, but also by a comprehensive assessment that takes into account the type of facility, its heating, hot water supply, ventilation systems, and other factors.
Most apartment buildings in Ukraine that were built before 1991 do not have an official energy efficiency certificate, as it was not mandatory at the time. In addition, the certification of old buildings is complicated by technical, financial, and organizational barriers: conducting an energy audit requires accurate data on area, volume, and engineering systems, which in many buildings are either missing or worn out, and it is difficult to raise funds for audits and modernization. Therefore, the energy efficiency indicators of old buildings are determined only approximately based on typical data on the year of construction, design, and insulation.
Therefore, most Soviet-era buildings are not energy efficient by modern standards, which once again proves the importance of renovation and modernization programs for the housing stock.
The experience of European countries
In April 2024, the European Union adopted an updated Directive on the energy performance of buildings with an ambitious vision: by 2030, all new buildings must be zero-emission, i.e., buildings with zero emissions, and existing buildings must transition to this format by 2050.
With regard to the renovation of existing housing stock, the Directive sets specific targets: by 2030, the average energy consumption of buildings must be reduced by 16%, and by 2035 — by 20-22%.
For new residential buildings, the directive sets a mandatory zero emissions standard: government and public buildings from 2028, all others from 2030. New buildings must have high thermal insulation, modern heating and hot water supply systems, the possibility of using renewable energy sources, and electric vehicle charging facilities. Such buildings can only be commissioned after obtaining an energy certificate of class A or higher.
This means that in Europe, energy efficiency is becoming the standard for safety, responsibility, and long-term energy sustainability.
The directive covers not only technical requirements, but also financing mechanisms, state support, etc.
The need to renovate the housing stock in Ukraine
The old housing stock poses significant risks. A large number of buildings are in poor or dangerous condition: as of the pre-war period, there were 45,500 "old" buildings and 16,800 in dangerous condition. Worn-out structures require constant repairs and expenses, and also lose their airtightness: with rising tariffs and cold weather, families are forced to spend more and more money on heating. A mass refusal to renovate will lead to frequent accidents, even greater increases in energy costs, and social tension (queues for apartments, subsidies).
On the other hand, modernization offers a number of advantages. Thermal modernization of old buildings can reduce their energy consumption by more than 40%, saving residents money and reducing the load on the system. Renovating facades, roofs, and utility networks increases comfort, reduces heat loss, and saves on utility bills. In addition, large-scale repairs and construction stimulate the construction market and create jobs.
Finally, the renovation helps protect the population in wartime: reinforced and insulated buildings are more resistant to impact and less dependent on centralized heating, which increases the resilience of communities.
According to Kyivteploenergo data from November 2025, energy-efficient buildings in the capital pay 20-40% less for heating.
On average, heating costs in energy-efficient buildings amounted to approximately 11–16 hryvnia per square meter. For comparison, residents of other high-rise buildings that did not undergo energy modernization paid an average of 19.8 hryvnia per square meter. As practice shows, the buildings that saved the most money were those that renovated their individual heating units, replaced windows and doors, insulated roofs and facades, and modernized lighting and electrical networks.
You can learn more about municipal energy efficiency programs and how to participate in them by following this link. You can also check how much heat a high-rise building consumes and how much heating costs on the website.
Energy-efficient new buildings in Ukraine
Ukrainian developers are gradually adopting energy-efficient construction standards. Some projects envisage passive or near-zero energy consumption.
In particular, Ukrainian startup Haus.me has developed an autonomous “passive house” equipped with solar panels, solar collectors, and heat pumps. Such “smart” houses produce more energy than they consume and are virtually independent of the grid. Several companies in Ukraine also use environmentally friendly materials (such as hemp shives) and their own heating optimization systems. However, such initiatives are currently niche.
Most residential complexes continue to be built according to standards that ensure energy efficiency ratings of at least C or D. Overall, energy-efficient new buildings are only just appearing on the market as examples of progressive technologies.
There are already examples of Ukrainian developers implementing such principles. The developer Royal House applied its own wall module technology in the Oxford residential complex, positioning them as energy-efficient solutions that reduce heat loss and heating costs. Another example is the DIADANS residential complex by developer ENSO, which received the prestigious BREEAM International New Construction certificate, confirming its compliance with high European standards of environmentally friendly and energy-efficient construction.
In addition, in April 2025, requirements for the certification of buildings according to the NEEAP (nearly zero energy consumption) standard came into force, so that new buildings would minimize energy consumption and reduce CO2 emissions. Currently, these standards allow buildings to be certified according to the NZEB standard, but this is not yet an obligation, but an opportunity for businesses.
Government policy and support programs
Ukraine has a number of state programs and strategies for housing renovation. In particular, in December 2023, the Cabinet of Ministers approved the Long-Term Strategy for Thermal Modernization of Buildings until 2050 and the concept of a state program for 2024–2030, which provide for an annual reduction in energy consumption in buildings and an increase in the energy efficiency of the housing stock.
In practice, the State Energy Efficiency Fund (EE Fund) has been operating since 2019, implementing the Energodim program —grant support for condominiums and housing cooperatives for the insulation of multi-story buildings. Under this program, more than 61,000 families are already co-financing energy efficiency measures (insulation of facades, replacement of windows, modernization of heating systems) with a total cost of over UAH 6.7 billion. The grant covers a significant portion of the costs (up to 60–70%), and the program is supported by the Government of Ukraine together with the EU, Germany, IFC, and GIZ.
On July 14, the government approved the State Targeted Economic Program for the Thermal Modernization of Buildings until 2030, which provides for a phased increase in the energy efficiency of housing — from the installation of individual heating units to comprehensive insulation of buildings. The goal of the program is to reduce the energy consumption of the housing stock by at least 30%, which will reduce greenhouse gas emissions, lower household utility costs, and increase Ukraine's energy independence.
Other initiatives include mandatory energy audits and energy certification of buildings during inspections, "warm loans" and subsidies for insulation from local budgets, as well as international donor programs. The government also supports individual programs for internally displaced persons (housing vouchers, etc.). All these measures are aimed at mass energy modernization of housing, which is critically important for the country's energy sustainability and improving the living conditions of its citizens.
This text was prepared by the Ukrainian Association of Developers as part of a special campaign called "Together with Yasno," which was joined by:YASNO, SAGA Development, Comfort Town, UNIT.Home, IB Alliance, DIM9000, and Atmosfera Management Company.
