Household investment in energy is rising, Czech Republic follows trend

According to a report by the International Energy Agency (IEA), the share of investment by end consumers in energy solutions such as rooftop solar installations and heat pumps has doubled since 2015. End users are therefore playing an increasingly important role in the energy sector, not only in energy savings but also in energy generation. The growing trend of investment in energy solutions is also evident among Czech companies and households. 

The growing role of households and companies is apparent from data over the past decade. In 2023, end-user investment accounted for 29 % of total energy spending in Japan and Korea, and 27 % in Europe, followed by 11 % in North America. Spending on improving energy efficiency in buildings accounted for the largest share, making up 50 % of all energy investment in Japan, Korea and Europe last year.

According to IEA data, average annual investment in energy measures in the buildings sector globally exceeded $200 billion between 2015 and 2023, surpassing the total amount invested not only in fossil-fuel power generation but also in distribution and transmission.

According to the report, government incentives and subsidy programmes play a key role in investment by households and companies. Around 10 % of this investment is supported by governments through grants or tax incentives, particularly in advanced economies.

Czech households and companies have also invested in energy in recent years

Increasing investment in energy solutions by households and companies has also been evident in the Czech Republic in recent years. The trend is perhaps most apparent in the installation of solar power plants and battery systems. A total of 80,000 households covered their roofs with solar installations with a combined capacity of 823.3 MWp in 2023.

Most customers (92 %) also choose solutions combined with battery storage. According to the Czech Solar Association, the successful New Green Savings programme was the main driver of the residential sector, as also stated in a report published by the European Solar Association. The Czech Republic was also among Europe’s five leading markets last year.

In addition to households, companies have also invested in energy as they seek to save energy and reduce their carbon footprint. The Czech Solar Association states that more than 2,500 power plants generating energy for companies’ own consumption, with a combined capacity of around 140 MWp, were installed last year.

Besides solar power plants, data on heat pump sales also confirm the trend of growing household investment in the country. According to statistics published by the Ministry of Industry and Trade, sales ranged between 55,000 and 60,000 in 2022 and 2023. This is nearly double the volume of previous years.

The energy crisis, which affected end customers through extremely high energy prices, undoubtedly also contributed to the sharp increase in investment by households and companies in recent years, not only in Europe but also in the Czech Republic. However, global data confirm that the trend is also evident in countries outside Europe. This may point to greater efforts to reduce emissions and transform the energy sector overall.