What is block heating? Operation, costs and regulation in 2026
Block heating is a central heat supply system where one installation provides heat to multiple homes, for example within an apartment complex, residential care facility, or multi-tenant building. Instead of each home having its own boiler, a single central boiler, heat pump, or thermal energy storage system provides heating and sometimes domestic hot water.
Heat is distributed through a piping system throughout the building to the individual dwellings. Each home has radiators or underfloor heating, but no individual heat source.
Block heating is commonly used in:
- Apartment complexes and residential towers
- Care facilities
- Student housing or multi-tenant office buildings
- Older buildings with a central boiler room
The goal is efficient use of energy sources and reduced maintenance through one shared system.
How does block heating work technically?
In a block heating system, heat is generated centrally in a boiler room or technical space. That heat can come from various sources:
- Gas-fired boilers, traditionally used but less sustainable
- Heat pumps or hybrid systems
- Aquifer Thermal Energy Storage systems
- Connection to a district heating network
The heated water flows through a network of pipes to the individual homes, where heat is emitted via radiators or underfloor heating.
Each dwelling is equipped with a heat meter or submeter that records the amount of heat consumed. This data forms the basis for cost allocation, often through a distribution key or automated billing data.
Read also: What is a cost allocation key and how does energy cost distribution work?
Cost allocation in block heating systems
An important aspect of block heating is the distribution of energy costs. Total heat production is measured on a main meter. Costs are then allocated to individual homes based on:
- Actual measured consumption through individual meters
- Floor area in square meters
- A combination of fixed charges and variable consumption
In addition, fixed costs such as installation maintenance, metering services, and management are included.
The Dutch Authority for Consumers and Markets ensures that users of block heating do not pay more than they would with a comparable natural gas connection. This principle is known as the “no more than otherwise” rule.
Changes dnder the Collective Heat Act 2026
With the introduction of the Collective Heat Act 2026, the legal classification of block heating will change. Property managers, housing associations, and homeowners’ associations that supply heat to residents will be considered small heat suppliers under the law.
This brings new obligations:
- Transparent billing, giving residents insight into consumption and costs
- Reporting requirements, requiring suppliers to demonstrate how sustainable their heat supply is
- Increased oversight, with municipalities and regulators gaining more control over tariffs and performance
The new law aims to create greater clarity, fairness, and sustainability within collective heat projects, including block heating systems.
Advantages of block heating
1. Efficient energy use
One central installation is often more efficient than dozens of individual boilers
2. Reduced maintenance and lower failure rates
Management and maintenance take place centrally
3. Easy integration with sustainable solutions
Central systems can be upgraded with heat pumps or residual heat connections
4. Space saving
No individual boiler required in each home
Disadvantages and Points of Attention
1. Limited freedom of choice – Residents are connected to one collective system
2. Cost perception – High fixed costs can make block heating appear expensive when consumption is low
3. Dependence on the property manager – Failures or inefficiencies affect multiple homes simultaneously
4. Administrative complexity – Without digital monitoring, billing can be time-consuming
For this reason, more property managers are choosing digital solutions that automatically collect, validate, and convert consumption data into billing data.
Smart data and monitoring in block heating
Modern technology enables block heating systems to be managed far more efficiently.
An energy management system such as Aurum EnergyGrip connects all meters, collects real-time data, and automatically converts it into actionable insights and billing data.
This provides clear benefits for:
- Property managers, through reduced manual administration and improved reporting
- Residents, through transparency in consumption and costs
- Municipalities, through reliable data for sustainability reporting
Block heating thus evolves from a traditional boiler system into a data-driven heat network, ready for the future.
Read also: Billing data for fair and efficient energy cost allocation
Conclusion: block heating in practice
Block heating is a proven and efficient system for heating multiple homes from one central source.
In the coming years, the focus will shift from purely technical performance to transparency, digitalisation, and sustainability.
With the Collective Heat Act 2026 and smart data solutions, property managers gain greater control over costs, performance, and reporting. Residents finally receive the insight they deserve.
Want to prepare your block heating system for 2026?
Please contact our experts.
Frequently Asked Questions
What exactly is block heating?
A collective heating system where multiple homes are heated from one central installation.
How are costs allocated?
Based on individual meters, floor area, or a combination of both.
Does block heating fall under the Collective Heat Act 2026?
Yes. Property managers supplying heat to residents are considered small heat suppliers.
What are the benefits of block heating?
Higher efficiency, reduced maintenance, and opportunities for sustainability upgrades.
How does data improve block heating systems?
Through real-time monitoring and automated billing data, managers can allocate energy costs fairly, efficiently, and transparently.