Mining energyIf we no longer heated with oil or gas in Belgium, we would, according to Kristof Eggermont of Econopolis Strategy, emit no less than 20 percent less CO2. “There are certainly plenty of climate-friendly alternatives, such as heat pumps. However, today it still takes far too long to recoup such an installation. However, the solution is relatively simple,” he said. Mijnenergie.be fished for the answers.
By Kurt Deman, in collaboration with Mijnenergie 16-09-23, 07:32 Source: Mijnenergie.be
Need for financial encouragement
A heat pump in itself is a climate-friendly solution for heating buildings. With barely 1 kWh of electricity, such an installation produces 3 to 5 kWh of green heat. But electricity prices in our country are much higher than gas prices, which means that it takes a very long time to earn back a heat pump.
What can we do to reduce the payback period to an acceptable fifteen years, Kristof Eggermont and his colleagues at Econopolis Strategy wondered. “Because in order to get the masses to switch, you have to provide them with an economic incentive.”
A heat pump requires solar panels: that’s how quickly you can recoup that investment.
How much more expensive is electricity today?
Kristof and his colleagues at Econopolis Strategy did the math. “In 2018 we were – together with Germany – the worst students in Europe. Belgians then paid five times as much for electricity as for gas. However, the Netherlands was already one of the best scoring countries in Europe. At that time, electricity was twice as expensive as gas.”
In most European countries, the relationship between gas and electricity prices has already improved. However, electricity prices are often still far too high to make the purchase of a heat pump financially attractive. “Also in Belgium, where in 2022 you paid 3.5 times as much for electricity than for gas.”
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How much further should the electricity price drop?
“To be able to recoup a heat pump in fifteen years, electricity for existing homes in Belgium should only cost 1.6 times the price of gas, and 2.4 times for new or heavily renovated existing buildings,” Kristof explains. “For example, in this new construction we assume that the heat pump is 4.5 times more efficient than a gas boiler. If electricity costs 2.5 times more than gas, an average family will save 530 euros annually on heating.”
In 2022, you would pay 3.5 times more for electricity in Belgium than for gas. In our neighboring countries, however, the relationship between gas and electricity prices looks a lot different, as shown in the table below.
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What can we do about it?
“The main reason why electricity remains so much less expensive than gas in neighboring countries such as the Netherlands is because those countries have started to tax electricity less and gas more.” In other words: the governments in our country hold the key to driving the switch to heat pumps, according to Econopolis Strategy. “If you shift the tax burden from electricity to natural gas and fuel oil, you give people economic benefits that make it easier for them to choose climate-friendly alternatives.”
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Read more on Mijnenergie.be:
How do you calculate the price of renewable energy (sources) in the sales value of your home?
This article was brought to you by our partner Mijnenergie.be.
Mijnenergie.be is an independent energy price comparator of electricity and gas offers.
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2023-09-16 05:32:00
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