Market boom in household energy efficiency?

According to the Hungarian Energy Efficiency Institute (MEHI), household energy efficiency could become a 1,200 billions HUF (EUR 3.84 billions) worth market in Hungary – reported Magyar Nemzet. This is because 24% of the Hungarian households, meaning 920 thousand families are planning energy efficiency investments in the next five years.

Efficient energy system means reducing overhead costs

Gabriella Szalai, managing director of MEHI told that

overhead costs are relatively high in Hungary compared to average wages.

Despite the fact that energy prizes in Hungary are among the lowest in Europe. To tell the truth, draughty, badly insulated flats equipped with old technology and outdated heating system devour energy. Thus, further price decrease needs investments in increasing the energy efficiency of private households.

International experience shows that there are three factors helping the most in developing energy efficiency. At first, predictable regulation, second, efficient and long-range support programs, and finally teaching conscious consumption.

Energy efficiency is an invisible resource able to lower overhead costs significantly.

Despite strategy, government does not give the support needed

In addition, energy-efficient homes could prove beneficial not only for the environment, but also for Hungarian economy and state budget. Thus, it would be important to start government supported programs – emphasized Gabriella Szalai.

The expert added that

reducing overhead costs by government regulations sends bad message to consumers.

It suggests that energy is just a commodity. As a result, people think that there is plenty of consumable power and price should not inevitably follow its value. Furthermore, price reduction is in vain if energy is used extravagantly and with low efficacy. In fact, 35% of today’s power consumption is done by private households. Undoubtedly, we could save at least 50% of that with modern, energy-efficient homes.

Energy efficiency could help the construction industry

According to MEHI’s survey,

61% of the people living in 4.4 millions of domiciles in Hungary think that their homes need maintenance or even a complete renovation.

In addition, many mentioned better heat insulation, modernized heating system, and substitution of doors, windows and roofs among their aims. Furthermore, MEHI mentions that even the government accepted to support household energy efficiency development in Hungary. However, they did not allocate the needed money for it.

Importantly, MEHI points out that

investments in energy efficiency could have a positive, stabilizing and balancing effect on the construction industry.

Though there is less money in renovations, they are more frequent, so they can help especially small businesses.

According to MEHI’s survey, house-owners of the two Hungarian plains (Kisalföld and Alföld) plan modernization above the average. Meanwhile, newly built houses are mainly in Pest County, the Transdanubia and county centres. Thus, energy efficiency development could compensate those regions where the number of new houses is lower.

Source: mno.hu