Utilizing Renewable Energy at Home: Practical Guide
In recent years, Germany has been at the forefront of renewable energy adoption, with a significant increase in the number of households switching providers and embracing sustainable energy sources.
The Renewable Energy Act (EEG), introduced in 2000, aims to transform the electricity supply into a sustainable and greenhouse gas-neutral one based entirely on renewable energies. The EEG contains measures such as a reduction obligation for electricity from renewable energies, the amount of payments to grid operators, and a levy mechanism that covers the costs of electricity production.
One of the primary renewable energy sources in Germany is solar energy, harnessed from sunlight using photovoltaic cells or solar thermal systems. The average lifespan of solar thermal systems is around 20-25 years. In the first half of 2025, more solar power was generated in Germany than ever before, with photovoltaic systems supplying 40 terawatt hours (TWh) to the power grid.
Another renewable energy source gaining popularity is wind power, generated by converting the kinetic energy of wind into electricity using wind turbines. However, Germany is not the cheapest country in Europe for charging electric vehicles, with an average of 39 cents per kilowatt hour (kWh) for charging their cars, making it the most expensive country in Europe.
Hydropower, produced by the movement of water, often through dams turning turbines to generate electricity, also plays a significant role in Germany's energy mix. Bioenergy, derived from organic materials such as plants and waste, which can be converted into biofuels or burned to produce energy, is another source that is being increasingly utilised.
Geothermal energy, coming from the natural heat stored beneath the Earth's surface, is used for heating and power generation. The average lifespan of a heat pump, a common geothermal technology, is 15-20 years.
Marine energy, including tidal power, wave power, ocean thermal energy conversion, and osmotic power, is another renewable energy source that Germany is exploring. Hydrogen energy, often included as a renewable when produced via renewable-powered electrolysis, is being developed as a clean fuel alternative.
In 2024, 9.3 million customers switched their electricity and gas provider or tariff in Germany, setting a new record. The main reason for the high number of switches was cost savings, according to experts. KfW offers funding for renewable energies through programs KfW 261, KfW 297, KfW 270, and KfW 485, making it easier for households to make the switch to renewable energy.
However, not all renewable energy technologies are without issues. Five models from other companies received a rating of "defective" in a test of several balcony solar systems. The most common criticism from testers was the poor stability of the supplied brackets.
As Germany continues to transition towards a sustainable energy future, it is clear that renewable energy sources will play a crucial role. With the abolition of the EEG surcharge in January 2023, the path towards a sustainable and affordable energy future is becoming clearer.
[1] Renewable Energy Sources (RES) - Definition, Types, and Importance - Energy Education [2] Renewable Energy Sources: An Overview - International Energy Agency [3] Renewable Energy Sources - The World Bank [4] Renewable Energy Sources - United States Department of Energy [5] Renewable Energy Sources - European Commission
Finance plays a significant role in Germany's renewable energy transition, with KfW offering funding for renewable energies through programs like KfW 261, KfW 297, KfW 270, and KfW 485. This enables households to make the switch to renewable energy sources.
As Germany moves towards a sustainable energy future, electric vehicles (EVs) are anticipated to play a key role in this shift. However, Germany is currently one of the most expensive countries in Europe for charging EVs, with an average of 39 cents per kilowatt hour (kWh) for charging their cars.
Credit opportunities like those offered by KfW might help incentivize investments in renewable energy solutions, such as solar, wind, and geothermal technologies, to lower the overall cost of electricity production.
With the increasing adoption of renewable-energy technologies in the industry, sustainable lifestyle choices, such as the use of electric vehicles and energy-efficient appliances, become more accessible and affordable for everyday consumers.
