Hybrid systems: the key to decarbonising the building stock

In this article, Gallardo analyses the main challenges and opportunities facing the heating sector against the backdrop of profound energy transformation. Amongst other matters, he addresses the transition towards decarbonisation, the future of boilers and hybrid systems, the strategic role of renewable gases and the priorities that will shape FEGECA’s roadmap over the next four years.

Energy Transition

FEGECA has established itself as a key technical and strategic player within the sector. My main objective as President is to reinforce that role and ensure that the heating and domestic hot water (DHW) sector acts as an active protagonist in designing and executing the energy transition.

To achieve this, the association will focus on increasing its institutional presence and advocacy capacity, defending a multi-technology model based on technological diversity and neutrality, supporting business transformation and innovation, enhancing the sector’s visibility and market positioning, strengthening collaboration with installers and distributors, and driving training and talent attraction - all essential elements for addressing the industry's present and future challenges. 

Beyond electrification

FEGECA must continue to serve as a strategic stakeholder in the energy transition of the thermal sector and as an active voice in the Spanish energy debate, bringing a perspective grounded in pragmatism, technological diversity, and the modernisation of installed equipment. Decarbonisation does not strictly mean electrification. There is no single technology that is suitable for all buildings and all end-users. Technical, economic, and infrastructure limitations make full electrification unfeasible in certain building types and applications.

This is why FEGECA advocates that a vision based on technological complementarity provides a more realistic solution - one where heat pumps, hybrid systems, and boilers fuelled by renewable gases (such as biomethane and hydrogen) coexist. Our role as an association is to help ensure that the energy transition unfolds in a realistic, accessible, and inclusive manner, adapting to the reality of the housing stock and consumer needs.

The Heating Sector

The sector is currently undergoing a transitional phase. Further to a period marked by the energy crisis, stock adjustments, and regulatory uncertainty, clear signs of recovery and stabilisation are now emerging. Over the past year, the market resumed its growth trajectory, reaching a turnover of €965 million in the financial year of 2025. This growth is driven by structural demand linked to the retrofitting of the existing building stock, which remains the sector's primary growth driver. This represents market consolidation rather than explosive growth.

Furthermore, regulatory clarification arising from the interpretation of the Energy Performance of Buildings Directive (EPBD) has provided greater legal certainty to the market. The guidance makes clear that classifying a boiler as fossil-fuel-based depends on the fuel used rather than the technology itself. Consequently, boilers operating on biomethane, biogas or hydrogen will not be classified as fossil-fuel equipment; therefore, they will not be banned and will continue to play a relevant role. This regulatory precision has helped dispel uncertainties and bolster confidence amongst consumers, professionals and investors.

Nevertheless, the sector remains engaged in a deep transformation process, driven by decarbonisation targets, technological evolution and the need to deliver increasingly efficient and sustainable solutions tailored to the needs of buildings and users. 

Renewable gases

Renewable gases undoubtedly represent a major opportunity, enabling progress toward decarbonisation by leveraging existing infrastructure and equipment, thereby serving as a mature response to energy transition requirements. Modern condensing boilers are ready to operate on green gas, guaranteeing full accessibility and avoiding complex refurbishments or prohibitive household investments.

The key challenge to consolidating biomethane in Spain is establishing the necessary framework for its deployment: a stable, predictable regulatory framework that recognizes the value of green gas in terms of decarbonisation, security of supply, the circular economy, and territorial cohesion. It is essential that the energy system's transformation relies on solutions that remain affordable for consumers. Similarly, subsidy schemes must be redefined from a holistic perspective, prioritising accessibility and minimising upfront capital expenditure for consumers.

FEGECA reiterates that the energy transition cannot be equated exclusively with electrification, nor can it impose unmanageable costs on citizens. Public administrations must inform citizens rigorously, ensuring technological neutrality and recognising that multiple pathways exist to achieve efficient decarbonisation.

For manufacturers, this landscape presents a significant opportunity, as all technologies possess the capacity to evolve and adapt to new energy carriers whilst maintaining a vital role in the future energy mix.

Hybrid systems

Hybrid systems are set to play a pivotal role in the decarbonisation of the existing building stock. Combining high-efficiency boilers with heat pumps is consolidating its position as one of the most promising solutions, offering a flexible and adaptable response to the diverse range of buildings and facilities in Spain. 

These systems make it possible to harness the advantages of each technology, optimising performance based on weather conditions, consumption profiles, or energy availability. In doing so, they facilitate a progressive reduction in emissions without compromising security of supply, user comfort, or the cost efficiency of the facilities.

What’s more, they fit perfectly into a model of technological coexistence, where boilers and heat pumps are not mutually exclusive, but rather complement each other. This is why FEGECA considers hybrid systems to be positioned amongst the alternatives with the highest growth and development potential in the coming years.

Message to the sector

The heating and domestic hot water sector must play an active leadership role in the energy transition. Decarbonisation requires a realistic and pragmatic approach based on the coexistence of different technologies. Boilers will continue to play a relevant role thanks to the development of renewable gases, whilst retrofitting the existing building stock will remain the sector's primary growth driver. Against this backdrop, hybrid systems are establishing themselves as one of the most promising solutions for advancing towards efficient, decarbonised heating.