European Consumers Seek Out Solar, EVs as Energy Prices Surge
(Bloomberg) -- Consumers in Germany and the UK are growing more curious about rooftop solar and electric vehicles as they seek to shield themselves from surging energy prices resulting from the Iran war.
Early signs are starting to emerge that more people are at least considering the green technologies as alternatives. Octopus Energy, the UK’s biggest energy supplier, said inquiries about home solar were 27% higher than average the week the war started, while German companies also reported a rise in interest. Data on actual sales won’t be available for a few months.
“We’ve consistently seen fuel price shocks and an unreliable grid accelerate small-scale solar adoption,” said Lara Hayim, a solar analyst at BloombergNEF. “In the past we saw it in markets like Europe, Pakistan and Lebanon, and we’re likely to see it again.”
Demand for clean energy technologies rose in the wake of Russia’s attack on Ukraine in 2022, as households and governments sought to reduce reliance on volatile fossil fuel supplies, driving increased uptake of solar panels and heat pumps in particular. History appears to be repeating, with inquiries for EVs in the US is already rising, alongside growing interest in electric stoves in India.
Still, a sharp increase in semiconductor prices — driven in part by their energy-intensive production — could push up the cost of solar systems and slow the pace of adoption.
German renewable energy company Enpal BV said inquiries for solar panels and heat pumps have risen about 30% since the start of the war, while 1KOMMA5° GmbH also reported nearly a doubling of interest in solar and an increase in questions about heat pumps.
A spokesperson from Enpal said that during the 2022 energy crisis, heat pump demand took longer to translate into actual sales, as installations require significant upfront investment. Heat pumps in Germany cost nearly twice as much as in the UK, making it one of the most expensive markets for the technology in Europe, according to data from Heat Pumps Watch.
In response to the crisis, the UK government pledged to make it easier for consumers to install plug-in solar panels, which are already widely available across other parts of Europe and can be placed in gardens, on walls or balconies. Officials said they would introduce new standards and tweak regulations so the panels can reach the market as soon as possible.
Ipsos polling released Wednesday found 84% of British people are worried about the impact of the war on the price of fuel and energy, in line with levels of concern at the start of the Ukraine conflict in 2022.
Some heat pump installers are also starting to see an increase in demand, the UK HPA trade association said. Existing customers are seeking to boost the efficiency of their systems and other pre-booked customers are asking for their installation dates to be brought forward, according to a poll the association conducted for Bloomberg.
Meanwhile, German online searches related to EVs have risen to 60% of total car searches, compared with 55% before the war, according to the platform Carwow Deutschland.
“This suggests that consumers are highly sensitive to economic conditions, such as rising energy costs,” said Philipp Sayler von Amende, chief executive officer of Carwow Deutschland.
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