Study: Switching from gas heating to solar and heat pumps could pay off for German households
A new study finds that German households replacing gas heating with a solar panel, battery and heat pump system could save more than €12,000 over 25 years. This comes as Germany has recently eased earlier planned heating requirements.
A study by German clean-tech brand "1KOMMA5°", reported by Euronews, suggests that households replacing gas heating with a combination of solar panels, a battery storage system and a heat pump could see substantial long-term financial benefits.
Higher upfront cost, lower total cost
The study compared two options: installing a new gas heating system for around €10,000, versus an electrified setup — solar panels, battery, heat pump and a smart energy management system — costing around €60,000. Although the electrified system requires a much larger initial investment, calculations show that over 25 years, factoring in a 5.99% loan interest rate, €16,500 in state subsidies, and energy savings, its total cost would reach about €104,542. Continuing to rely on gas heating over the same period, accounting for expected gas price increases, would cost around €116,993. The difference amounts to a saving of roughly €12,451 in favor of the electrified system.
Upfront price can be misleading
"1KOMMA5°" co-founder Jannik Schall said homeowners should not focus solely on the purchase price. He explained that financing the switch from gas to electric heating through regular monthly payments allows households to achieve more predictable costs and reduced exposure to fluctuating fossil fuel prices. According to the company's calculations, the smart energy management system alone could cut electricity bills by up to €42 per month, by automatically deciding whether to use, store or sell the solar power generated by the household.
Heat pumps gaining popularity in Germany
Last year, heat pumps became the best-selling new heating technology in Germany, accounting for 48% of all new heating systems sold, with sales up 21% compared to 2024. At the same time, Germany has recently softened previously planned heating requirements, dropping the rule that new heating systems must source at least 65% of their energy from renewables, and scrapping plans to ban the installation of new oil and gas heating systems. Jan Rosenow, a professor of energy and climate policy at Oxford University, warned that significantly weakening the earlier requirements delays necessary decisions and could make the future shift to greener heating more expensive and complicated.
