Retrofitting in 2025: How Technology Is Shaping the Industry

Retrofitting is all about upgrading buildings to make them more energy-efficient and sustainable. In 2025, new ideas and technologies are changing how we do this, making retrofits smarter, faster, and more effective.

To explain what’s happening, we spoke to Michael Zohouri, Founder of Pyramid Eco. With years of experience in sustainable retrofits, Michael shared insights into the key trends shaping the industry and how they’re helping to improve buildings.

If you want to save money, boost building performance, and meet modern standards, these trends are worth knowing. Here are the top retrofitting trends to watch in 2025.

Smart Retrofits with IoT Technology

Technology is making retrofitting smarter than ever. The Internet of Things (IoT) connects building systems to the cloud, allowing property managers to monitor and control them in real time. Devices like smart thermostats, energy meters, and occupancy sensors optimise heating, cooling, and lighting, ensuring buildings use only the energy they need. For example, IoT can detect when a room is empty and automatically adjust the temperature or lighting, improving efficiency without affecting comfort.

Why It Matters:

IoT retrofits help reduce operational costs by minimising energy waste while also providing data insights to maintain efficiency over time. These systems are often easy to integrate with existing infrastructure, making them an ideal upgrade for older properties.

Energy-Efficient Building Envelopes

The building envelope — the outer shell that separates indoor and outdoor environments — is one of the most critical areas for retrofitting. Upgrades, like better insulation, double or triple-glazed windows, and external wall insulation, are key to reducing heat loss and improving thermal performance. Advanced materials such as vacuum-insulated panels, aerogels, and reflective coatings are also being used to enhance energy efficiency without sacrificing design.

Why It Matters:

Improving a building’s envelope can dramatically cut heating and cooling costs while helping meet stricter energy regulations like the UK’s Future Homes Standard. These upgrades also improve indoor comfort by reducing drafts and maintaining consistent temperatures.

“Building envelope upgrades are some of the most cost-effective retrofits,” Michael Zohouri explains. “They tackle the root cause of energy loss and improve comfort for tenants, making them a win-win.”

Renewable Energy Upgrades

Solar panels and battery storage are now more affordable and practical, thanks to advancements in technology. These systems can be integrated with existing buildings to generate clean energy, reduce reliance on the grid, and protect against rising energy costs.

Why It Matters:

Adding renewable energy solutions helps buildings meet sustainability goals while cutting long-term operational costs. For example, a comprehensive retrofit, including the installation of solar panels, achieved a 75% reduction in energy consumption for a Victorian house in St Albans. Many governments also provide grants and incentives, making these upgrades more financially accessible.

Deep Retrofits for Net-Zero Goals

Deep retrofits go beyond surface-level improvements to address every aspect of a building’s energy performance. These projects often include making the building airtight, adding heat recovery ventilation systems, and upgrading to high-efficiency heating and cooling. The aim is to bring buildings in line with net-zero targets by reducing energy use to the absolute minimum.

Why It Matters:

As businesses and governments push towards net-zero carbon goals, deep retrofits are essential for older buildings that need to catch up. These comprehensive upgrades ensure properties stay compliant with evolving regulations and remain attractive to tenants and investors.

AI and Predictive Maintenance

Artificial intelligence (AI) is changing how retrofits are planned and maintained. By analysing data from building systems, AI can predict when components like HVAC units, boilers, or lighting systems will need maintenance or replacement. This allows property managers to plan retrofits strategically, avoiding costly breakdowns and extending the life of systems.

Why It Matters:

Predictive maintenance reduces downtime, cuts repair costs, and improves the overall performance of building systems. It’s particularly valuable for large-scale retrofitting projects, such as those in social housing or commercial real estate, where unexpected issues can cause major disruptions.

Modular Retrofitting

Modular retrofitting uses prefabricated components like wall panels, insulation systems, and mechanical units, which are built off-site and then installed quickly on-site. This approach speeds up the retrofitting process, reduces disruption for occupants, and often results in a more consistent finish.

Why It Matters:

Modular solutions are particularly useful in urban areas, where space and time are limited. They also produce less waste during construction, making them a sustainable choice for retrofits.

Reusing and Recycling Materials

Circular economy principles are gaining traction in the retrofitting industry. Instead of discarding materials from old buildings, they are being salvaged, refurbished, and reused. Timber, bricks, and steel can all be repurposed, reducing waste and lowering the carbon footprint of retrofitting projects.

Why It Matters:

Reusing materials saves money, reduces environmental impact, and supports global sustainability goals. It also appeals to eco-conscious tenants and investors who prioritise sustainable practices. “Deconstruction, rather than demolition, is the future,” Zohouri explains. “It’s not just about saving money — it’s about reducing our environmental impact.”

The Future of Retrofitting

In 2025, retrofitting is advancing in ways that make buildings smarter, greener, and better for their occupants. By adopting trends like IoT integration, renewable energy systems, and circular economy practices, property owners and construction professionals can future-proof their buildings while contributing to a more sustainable future.