03 Apr 2024, 13:30
Edgar Meza

Full energy transition in Germany's households saves money – report

Clean Energy Wire / WirtschaftsWoche

A private energy transition for individual households could be both ecologically and economically worthwhile, according to a report by the consulting subsidiary of the German Institute for Economic Research, DIW Econ. On average, households incur lower overall costs over a 25-year period when choosing sustainable alternatives in the areas of basic needs, heating and mobility despite initially significantly higher investments, the report on behalf of Berlin-based solar leasing company Enpal found. Specifically, energy transitions in households can be financially worthwhile if they are well planned and implemented correctly, the report concluded. This meant households adopting as many green technologies as possible – including photovoltaic (PV) systems, battery storage, heat pumps and electric cars – rather than taking individual measures.

In its analysis, DIW Econ compares an “old-world” household that uses conventional fossil fuels with a “new-world” household that covers its energy needs through intelligent energy management and sustainable technologies. By exploiting energy transition advantages, such as dynamic electricity tariffs, and using all available technologies, “new-world” households could expect energy savings of 19 percent over a 25-year period, as the running costs for fuel, maintenance and repairs are much lower for sustainable households that rely on electricity, the report found. "Especially in combination, rooftop PV, electric cars and heat pumps can save significant amounts of money in the long term compared to the old, fossil-fuelled world - despite the relatively high German electricity prices," report author Anne-Christin Winkler told WirtschaftsWoche. “This tendency would increase if political interventions in favour of sustainable technologies increased in the coming years, for example through new political measures as part of a stronger policy focus on sustainability,” the report adds. 

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