The study examined the possibility of district heating using heat pumps or an alternative technology based on electricity for buildings located in the town of Leipalingis in Druskininkai district. There are twelve old construction houses, ten of which are multi-apartment buildings of different height; the remaining two are a clinic and a school. Not all the buildings, except for the school and a residential house in Melioratorių g. 14, are renovated. The school was renovated in 2004.The residential house in Melioratorių g. 14 is undergoing renovations the completion of which is scheduled for 2013. To date, the heat is supplied to buildings in a centralized manner by heat supply networks existing in the town. Since losses in these networks are as high as 70%, the goal to decentralize the current system and for this reason alternative ways for heating of these buildings are sought. The paper provides an overview of the current condition of buildings, heat consumption, assess the impact of renovation on heating costs of buildings and investment in ground and air source heat pumps.