When the investment in a heat pump yields financial returns.
Investing in personal energy transition, like installing a heat pump, can be a financially sound decision, according to a study by energy supplier EON. After 11 years, the cumulative cost of purchasing and operating a heat pump, combined with solar panels for a single-family house from the 90s, may be lower than that of a new gas heating system. This is as per a joint study conducted by EON and RWTH Aachen. EON Energy CEO Filip Thon declared that this investment is worthwhile and beneficial for the environment.
The RWTH study analyzed expenses for various house types, family sizes, and locations to determine when the costs of modern energy solutions are lower than those for a new gas heating system. The energy solutions considered were installation of a heat pump, a heat pump with solar panels, or a combination of a heat pump, solar panels, and battery storage. The ongoing subsidy for a heat pump of 16,500 Euro was also factored in.
According to the study, annual operating costs amount to approximately 6400 Euro for gas and a row house from the 90s with about 130 square meters, and around 4520 Euro per year for electricity for a heat pump. For a single-family house built in 2005, it was around 3000 Euro per year for gas and 2130 Euro per year for the heat pump. Gas prices are expected to increase in the near term as fewer individuals are buying gas, thus leading to an increase in network charges.
Gas market expert Sebastian Gulbis agrees with this prediction, stating, "European gas markets will remain unpredictable." Events such as cold winters or disruptions in the infrastructure can cause sudden price hikes.
EON believes that the energy transition must be affordable for the consumer. However, there is still a good amount of misinformation regarding this. The survey conducted by EON showed that one third of the 5000 respondents believe that the total cost of a heat pump and solar panel system would be lower than that of a new gas heating system only after 16 or even 20 years. More than a quarter had no opinion on the matter, while one fifth of the respondents provided the correct estimate as per the study.
Eon Energy CEO Thon believes that even smaller investments, such as smart thermostats, LED energy-saving lamps, or a showerhead, can be recovered within a few months. Eon Energy is Germany's largest green energy supplier, with around 14 million customers.
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In light of the expected increase in gas prices due to decreasing demand, investing in heat pumps could significantly reduce heating costs compared to gas heating systems in the long term, as shown by EON's study. This study also highlights the potential financial benefits of heat pumps, which often receive government subsidies like the 16,500 Euro grant, making them a viable alternative to gas heating. Furthermore, smaller energy-saving investments, such as smart thermostats or LED bulbs, can also result in quick financial returns, according to EON Energy CEO Filip Thon.
