The Cost of Green Living: Survey Reveals Widespread Concern Over Energy Costs and Renovation Affordability in Germany

Karlsruhe, Germany – As Germany and much of Europe push towards a greener future, a significant disconnect has emerged between the aspirations of climate-friendly living and the financial realities faced by households. A comprehensive survey of 3,000 German households, conducted in late 2025, reveals widespread apprehension about escalating energy costs, with nearly three-quarters of respondents anticipating substantial increases. Furthermore, a staggering 65% of those surveyed feel financially incapable of undertaking necessary energy-efficient renovations, highlighting a critical barrier to achieving climate goals at the individual level.

The findings, emerging from the EU-funded PREFIGURE project coordinated by the Karlsruhe Institute of Technology (KIT), shed crucial light on the intricate relationship between energy cost anxieties, financial constraints, and the perceived ability to act. Researchers involved in the project are now advocating for the implementation of tiered subsidy models and greater tenant participation in decision-making processes as key strategies to alleviate these concerns and foster a more equitable energy transition.

The Deepening Divide: Renters vs. Owners

The survey data underscores a stark divergence in financial capacity and perceived affordability between renters and homeowners. Among those renting their homes, an overwhelming 75% believe that climate-friendly renovations are either not financially feasible or entirely unaffordable. This figure stands in contrast to 55% of homeowners who express similar concerns, indicating that while ownership offers more control, the financial burden remains a significant hurdle.

Beyond financial limitations, the survey also highlights a critical lack of agency for tenants. Among the 1,126 renters who have undergone or are planning energy-efficient measures, a significant 78% reported being minimally or not at all involved in the decision-making process. This suggests a top-down approach to renovations, where tenants, who bear the brunt of rising energy costs, are often excluded from choices that directly impact their living expenses and comfort.

Professor Michael Janoschka, the project coordinator and head of KIT’s Institute for Regional Studies, elaborated on the complex interplay of factors influencing these anxieties. "The analysis of the German dataset shows that concerns about rising energy costs are not solely linked to a building’s renovation needs or current housing cost burden," he stated. "The scope of action for tenants and owners, knowledge about renewable technologies, and the socioeconomic situation are also highly relevant." This nuanced perspective emphasizes that addressing energy cost concerns requires a multifaceted approach that extends beyond mere building efficiency.

Quantifying Anxiety: The "Worry Indicator"

To systematically compare and understand the depth of energy cost concerns, the PREFIGURE researchers developed a "Worry Indicator." This metric consolidates three key assessments: the perception of current energy prices as unfair, the expectation of significantly rising energy costs, and the belief that climate-friendly renovations are unaffordable. Individuals who endorse at least two of these statements are categorized as belonging to the group with high energy cost worry.

The results are sobering: 63% of all respondents fall into this high-worry category. The financial strain is demonstrably linked to the proportion of household income dedicated to energy. For households where energy costs constitute at least 15% of their net income, the proportion of those with high energy cost worry jumps to an alarming 79%. Conversely, for households spending less than 5% on energy, the figure drops to 56%. Notably, single-parent households report particularly high levels of concern, with 75% falling into the high-worry group.

Interestingly, the research also points to a correlation between familiarity with renewable energy technologies and a reduced prevalence of high energy cost worries. Similarly, individuals who express a stronger willingness to engage in a collective energy transition appear to experience less anxiety. However, the researchers acknowledge that it remains open to interpretation whether this increased knowledge and engagement actively reduces worries or if other underlying circumstances explain these observed differences.

Towards Accessible Solutions: Subsidies and Participation

The PREFIGURE project team has put forth concrete recommendations to address the identified challenges. They advocate for a reliable, socially tiered subsidy system characterized by simplified application procedures and minimal upfront financial contributions. For renters, the researchers emphasize the critical need for effective participation mechanisms, ensuring that renovations remain financially manageable for them.

Dennis Hof from the German Federal Institute for Building and Urban Affairs (BBSR), who coordinated the German PREFIGURE survey, underscored the urgency of these recommendations. "Those with limited financial means must be able to access subsidies without high upfront payments," he stated. "And those living in rented accommodation need a voice in the process. Both are essential components of a socially just energy transition."

The PREFIGURE project also delves into local-level solutions, drawing inspiration from international initiatives. The Bulgarian program "CODE Housing Microloans" serves as an example, offering interest-free microloans to low-income households for minor repairs and energy efficiency measures. This program is further enhanced by complementary advisory services and workshops, demonstrating a holistic approach to supporting vulnerable households.

A Wider European Perspective and Future Steps

The comprehensive survey was conducted across seven European countries: Germany, Bulgaria, Denmark, Estonia, Greece, the Netherlands, and Spain, utilizing the market research platform Dynata. The BBSR led the analysis of the German sample. Initial observations, which require further in-depth study, reveal significant regional differences in the perceived fairness of energy costs. Despite these variations, a general willingness to participate in the energy transition is evident in many areas.

The Horizon Europe project PREFIGURE aims to identify pathways for reconciling energy-efficient renovations with affordable housing and social inclusion. This objective is pursued through a combination of household surveys and local case studies conducted in eleven European cities, including Karlsruhe.

The overall coordination of the PREFIGURE project rests with KIT’s Institute for Regional Studies, which also oversees the comparative analysis of the surveys. KIT’s Institute for Technology Assessment and Systems Analysis is actively involved in case studies in Thessaloniki, further broadening the project’s scope and understanding of regional nuances.

The PREFIGURE team is planning to release a dossier featuring in-depth statistical analyses and European comparisons in early 2027. By the project’s conclusion at the end of March 2027, the gathered insights are intended to translate into actionable recommendations and be disseminated through discussions with policymakers, the housing industry, and civil society organizations. The ultimate goal is to foster a more inclusive, affordable, and equitable path towards a sustainable future for all European citizens.

The findings from PREFIGURE serve as a crucial wake-up call, highlighting that the transition to climate-friendly living cannot be achieved solely through technological advancements or broad policy directives. It demands a profound understanding of the financial realities and social dynamics that shape individual decisions, and a commitment to inclusive solutions that leave no one behind. The success of Germany’s and Europe’s climate ambitions hinges on effectively bridging the gap between environmental goals and the everyday financial concerns of their citizens.