Klaus Meier, a retired man from Berlin, winced last month when he received his current electricity bill – the amount was almost twice as high as it had been two years before. Within a few days he had made an appointment with a solar installer to discuss putting solar panels on his house. "I hadn't really considered solar panels before, but I can't imagine doing anything else," he commented. Meier is not alone; in fact he is part of a much larger trend taking place across Germany, the United Kingdom and other parts of Europe: people are trying to find ways to escape the uncertainty of fossil fuels and their price hikes. Data compiled by renewable energy companies and agencies that track automotive sales indicate energy cost increases are generating a long-term shift to adopting renewable energy sources. Examples of that shift can be seen in data from Enpal BV, a solar rental company based in Germany; Enpal has reported a 30% increase in inquiries for solar rooftop systems and home battery systems since the initiation of escalating geopolitical tension in fossil-fuel-rich regions. In Britain, Octopus Energy, one of the country's largest energy suppliers, has reported a 27% increase in requests for residential solar systems in that same timeframe.
"It's not just the environmentally conscious crowd anymore," said a spokesperson for Enpal, who handles customer intake. "It's families, retirees, small business owners-people who are simply looking at their bills and doing the math."
It's becoming harder to overlook the mathematics of this situation; wholesale natural gas and electricity prices have also spiked, flowing through to your household bills and transportation costs. Because of the unpredictability of European energy systems, solar panels on your rooftop will provide you with cleaner energy while protecting yourself against rising energy prices.
Lara Haym, an analyst who tracks distributed energy at BloombergNEF, noted that this pattern has played out before. "Every time there's a major fuel-price shock or a supply scare, interest in small-scale solar spikes," she said. "We saw it during the war in Ukraine, and we're seeing it again."
Worried Consumers, Eager Drivers
Public anxiety is running high. An Ipsos poll released last week found that 84% of British respondents said they were worried about how international tensions might affect their energy bills-a level of concern reminiscent of early 2022, when Russia's invasion of Ukraine sent prices spiraling.
Political actions are being taken to address this anxiety. In the UK, Government officials have announced plans to change the regulations for plug in solar panels, which are small solar panels that are designed to be installed on balconies, patio walls or outside any other wall and require no full roof installation. These types of devices are very popular already in countries like Germany and Austria, and therefore, by simplifying the regulatory process, it is hoped that they may reach the market faster than they would without the easing of the regulations.
The same change is happening on the roads of Europe as the move away from gasoline and diesel powered cars is happening at a rapid pace. On Carwow, an online car buying platform in Germany, there has been an increase in the amount of electric vehicles being searched for. There is currently 60% of all searches on Carwow for electric vehicles, up from 55%, three months ago.
"Consumers are highly alert to changes in their monthly expenses," said Philipp, CEO of Carwow Deutschland. "When fuel prices go up, they start looking seriously at EVs. We're seeing that play out in real time."
Brussels Weighs New Measures
The EU is also adjusting its course of action. A letter obtained by Politico shows that Commission President Ursula von der Leyen has presented member states with a list of options to help ease the burden of high energy prices, including helping households and companies directly and allowing nations to put a temporary cap on natural gas prices.
The proposals represent a careful balancing act between the two goals that Brussels has for itself: To provide immediate support to the most vulnerable consumers and to make steps towards meeting its longer-range goal of decarbonizing the continent's economy. However, in many instances, the transition to a more decarbonized economy is already happening faster than any policy action could lead to.
"The message has never been more strong," said Markus Krebber, CEO of German energy utility RWE, in an interview. "There is no question that investing in electrification and moving away from fossil fuels is not only a climate necessity, it is a necessity for our economy."
Not All Smooth Sailing
There is still a long way to go before fully integrating renewables into Europe's grid. There remain many challenges, including supply chain issues with semiconductors and inverters. As a result, this will either slow down countries' progress toward their renewable goals or will likely increase the cost of using renewable energy to generate electricity for end users. Energy suppliers will need to upgrade their grid to accommodate the anticipated amount of new rooftop solar installations and electric vehicle (EV) charging stations.
For the time being, demand for solar is continuing to increase. In Germany, it's common to see waits of several months for rooftop systems because installers are filling technician positions as quickly as possible and obtaining enough equipment for installations.
One such example is Klaus Meier from Berlin. He is looking to have his solar array installed before summer. "I used to view renewables as something that would be available someday," he said. "However, I now see it as being available now due to the cost of utility bills that I received in the past."
For millions of Europeans who are concerned about climate change, have experienced geopolitical instability, or are tired of paying high utility bills, generating your own energy will be the most reliable way to reduce utility costs. If the current trend continues, Europe's solar energy landscape will be entirely different within the next few years.
