What is keeping households from becoming energy independent?

The prices for fuel, gas and electricity are skyrocketing in Germany and the rest of Europe. Now more than ever, people are looking at their own consumption patterns as it becomes increasingly more expensive to maintain current high-energy lifestyles powered by traditional energy sources. While most people are aware of global warming and want to reduce their own carbon footprint, many households are still hesitant about installing solar panels on their roofs, switching to electric cars, or taking other steps to becoming independent of large energy providers. Some name their concern for inconsistent and unreliable electricity as the main reason that is holding them back from becoming more self-sufficient, some are scared off by the bureaucratic barriers and confusing subsidy policies associated with the acquisition of new energy systems, and some question the economic feasibility of PV systems and other home upgrades.?

In this article, we are going to take a closer look at the concerns of homeowners and provide answers to some of the most frequently asked questions.

What is currently keeping households from switching to clean energy technologies?

The most frequently named reason that stops Europeans from investing in heat pumps, solar systems, storage solutions and EV charging stations is the high upfront investment necessary to acquire the technologies. In comparison to non-renewable energy, which comes directly from the power line, solar panels and other clean energy technologies need to be properly installed before they can supply a family with energy. The acquisition costs for heat pumps, for instance, range between 10.000 and 25.000 Euro in Germany. While such an investment pays off in the long term, many families struggle to finance them all at once. This is where energy-as-a-service models can play a valuable role in increased adoption of locally generated clean energy; EaaS provides homeowners with clean energy systems with zero upfront payment and maintenance of the systems throughout the lifetime of their contract in exchange for a small monthly rental fee, which replaces the customer’s previous energy bill. This allows households to change their energy consumption patterns without the need to take out large loans from the bank or invest large amounts of private savings.

Moreover, many people are worried about the bureaucratic effort that installing PV systems in particular might entail. And this concern is certainly justified. In Germany, each new PV system must be registered with the responsible grid operator, of which there are around 900 different operators in the country, all with different requirements in their request forms. The approval process can take several months, so if a family decides to acquire a PV system in the summer, chances are it will only start working in the winter.?In case the solar system produces more energy than is consumed by the household, the excess energy is fed back into the grid, for which the owner receives a fee. In Germany, this additional income needs to be registered and taxed properly, which requires some bureaucratic know-how. Additionally, the installation of PV systems is tied to numerous impractical legal constraints. For example, two neighbors in a duplex cannot operate a joint PV system as private individuals. To accelerate the adoption of clean technologies for residential use, lawmakers and politicians thus need to lower the bureaucratic barriers and simplify the registration process, so that renewable energy becomes accessible for everyone.?

PV systems are increasingly popular in Europe, yet some people still have concerns about negative health implications: they are worried about the electrosmog that PV systems -similar to all electric household appliances such as microwaves or washing machines- produce. However, these concerns are groundless. While PV systems do produce a measurable amount of electrosmog, they are not harmful to the residents in the household, since the magnetic flux density (which measures the strength of a magnetic field) is so low that it has no effect on the human body.?

Similar to PVs, the installation of heat pumps is also challenging for interested residents; most types of pumps need a permit to be set up, and the feasibility of the pump depends on other aspects of the property, such as the ventilation system of the house or the condition of the soil. It therefore takes some time to choose the right heat pump, an effort that can easily discourage a young family from buying such a technology.

Are clean energy technologies more volatile and less reliable than traditional energy sources, such as oil and gas?

“PV systems only work when the sun is out, and electric cars need hours to charge before they can be used." - Many people fear that renewable energy technologies are more volatile and unreliable than energy generated from fossil fuels. Electric vehicles still have the image of only lasting 100 km and needing to be charged for hours before running again. It is less known that E-Cars can already drive up to 500 km before running out of electricity, and that EV charging stations found on highways only take 30 minutes to get the car battery up to 80% again. Solar Panels, while being the most effective when the sun is out, also generate some energy when the sky is clouded or when it is raining.?

In fact, it has become relatively easy for households to become fully self-sufficient with renewable energy. By installing a PV system on the roof, using a storage system to save the energy that is not immediately consumed, and using that electricity to power a heat pump, families can maintain their consumption habits and at the same time, can end their dependency on fossil fuels.?

Are clean energy technologies really economically feasible for homeowners??

Solar panels are a good investment for all homeowners that consume their self-generated energy. It might not pay off for homeowners to feed all electricity into the grid in exchange for a small feed-in tariff, and to consume none of it by themselves, but in all other instances, both a PV system and a storage system are economically viable. The feasibility of heat pumps depends on several factors such as the insulation of the house, the type of the heating system in place and the heating flow temperature of such a system. While heat pumps are always beneficial in terms of sustainability and energy efficiency, it does not always cut costs for homeowners. By acquiring a wallbox, a private EV charging station, car owners who are also homeowners can charge their cars at much cheaper prices than offered at public gas stations and chargers. In Germany, these boxes are subsidized by the KfW and bring the most benefit to customers who also own solar panels, since these panels can power the charging stations for free.?

How can homeowners become energy autonomous?

To become fully independent from grid operators, households need to have an overall concept covering all aspects of energy supply and consumption. With a PV system and a solar thermal system, a family can generate their own electricity and use the power of the sun to heat their water. To have that electricity accessible day and night, a storage system is required.?Furthermore, heat pumps can be used both for heating and cooling purposes, and can be powered with the self-generated energy. Families that are dependent on their own car, but still want to support clean mobility, can acquire an EV charging station on their property. The costs for an autonomous energy concept are around 100.000 Euro based on the demand of the house, the size of the PV panels et cetera. Given the current and anticipated energy prices, it can be estimated that such an investment is amortized after around 20 years.?

For homeowners who struggle to raise enough money for the conversion of their home, the KfW offers special bank loans for renewable energy technologies. Alternatively, energy-as-a-service providers offer rental models for PV systems, EV-stations etc. and might be the better choice for people that prefer monthly payments to a larger loan.?

Conclusion: All the findings in a nutshell

In times of uncertain geopolitical developments and soaring energy prices, more and more people want to switch to self-generated energy, but find it difficult to put this dream into action. While the installation of clean energy technologies is pricey and requires investing time, the effort pays off in lower energy prices, autonomy and a greener planet. If households cannot make a large upfront investment required to purchase a technology, they can always turn to EaaS providers that not only ensure the reliable installation and maintenance of the system, but can also offer support with paperwork and other bureaucratic necessities. Between EaaS, financing, and direct purchase options, families and other home owners have the choice between different financing options and can flexibly choose the model that best suits their needs, benefitting from the many perks of clean energy.?