Two in five homeowners in Germany say they can’t afford climate-friendly renovations

The share of homeowners who say they don’t have the money to install climate-friendly technologies has increased significantly in Germany. 41 percent of property owners said they weren’t able to afford technologies like new windows, insulation, heat pumps or photovoltaics, compared to 29 percent two years ago, according to the energy transition barometer survey by state development bank KfW. As a result, cost concerns were the most important investment hurdle cited by homeowners for partaking in the energy transition. “The assumption that the investment is not worthwhile is cited by 39 percent as an obstacle. In third place, with 27 percent, is the lack of availability of craftsmen,” KfW said, adding the rise in financial concerns was likely caused by the “reduced financial leeway of many households as a result of increased energy costs and the general rise in prices, as well as the sharp rise in construction costs.”

The number of households using at least one energy transition technology increased marginally to 32 percent, or around 13 million households. The share of households who reported feeling the pressure of higher heating and electricity costs rose from 50 percent to 60 percent in the last year. Concerns about energy costs are even more prevalent among households with gas and oil heating, and much less so among those with heat pumps and wood pellet heating, KfW said. However, overall support for the energy transition remained very high. “Nine out of ten households continue to support the energy transition project. Despite the challenges and uncertainties of the past year, it thus continues to enjoy extremely high support among the population,” KfW said.