Quantifying benefits of renewable investments for German residential Prosumers in times of volatile energy markets

Abstract

Abstract The COVID-19 pandemic and the Russian invasion of Ukraine have led to unseen disruptions in the global energy markets since the end of 2021. Residential renewable investments like photovoltaic systems, battery home storage systems, and heat pumps are therefore gaining traction. However, the benefits of those technologies during the energy crisis and beyond have not been fully quantified yet. Therefore, in this study, we benchmark renewable investments for a broad variety of single-family homes by evaluating potential cost savings and emission reductions. In addition, the study considers the influence of recent political incentives and subsidies. The results show that photovoltaic systems are a no-regret investment decision, both economically and environmentally. At the climax of the energy crisis, a typical German household with a heat pump could save 1850 € and reduce equivalent CO2 emissions by 250 g/kWh annually. Politically introduced price breaks on electricity and natural gas do not reverse this advantage. Furthermore, when owning an electric vehicle renewable investments are often more beneficial.