Electricity costs: how low-income households can save

  • 2 years ago

In order for low-income households to save on electricity costs, specific support programs must be strengthened. This is the conclusion of the so-called ZEW policy brief published by ZEW - Leibniz Centre for European Economic Research GmbH Mannheim and the University of Heidelberg, which is based on an empirical analysis of the "Electricity Saving Check". According to ZEW, however, the support programs should not only focus on purely financial support, but should combine the offer with behavioral incentives.

According to ZEW, this can be achieved, among other things, with the free "Electricity Savings Check". Eligible households with particularly inefficient old appliances receive a voucher after an energy consultation, which they can claim financially after purchasing a new appliance. Households can cover an average of 35 percent of the purchase price thanks to the voucher from the nationwide program. Additional programs run by the states and municipalities can increase the percentage to as much as 45 percent.

According to ZEW, switching to an efficient refrigerator is worthwhile because low-income households have older appliances than average. These usually consume more than twice as much electricity as a new appliance. "An old refrigerator can become a cost trap, especially for low-income households. If they can afford to replace the appliance, it usually pays for itself within three years," says Bettina Chlond, environmental economist at ZEW Mannheim and co-author of the study.

Source and further information: zew.de/stromspar-check.de
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