Germany’s energy giant, Eon, has issued a cautious assessment of future energy prices, predicting a period of relief for consumers followed by a potential resurgence in costs, sparking debate over the sustainability and fairness of the nation’s energy transition. According to Eon CEO Leonhard Birnbaum, a decrease in electricity and gas prices is anticipated for most consumers as early as 2026. This initial decline is attributed to federal government relief measures impacting grid fees and the gradual stabilization following the energy crisis of 2022. For a typical household in the Rhine-Ruhr region, Birnbaum estimates potential savings of around €150 on their electricity bill and €200 on their gas bill next year compared to 2025.
However, Birnbaum’s projection carries a significant caveat. He warns that the picture could shift dramatically from 2027 onwards. The necessary investment in building a new energy system heavily reliant on volatile renewable sources is predicted to drive electricity prices upwards. Similarly, rising network costs, increasingly shouldered by a dwindling customer base, are expected to inflate gas prices. This looming cost increase necessitates a concerted effort to “make the energy transition as efficient as possible” Birnbaum stated, highlighting a growing political pressure to streamline the process.
Adding a layer of complexity to the debate, Birnbaum has controversially called for an immediate halt to state subsidies for solar power. Arguing that rooftop photovoltaic (PV) systems are now economically viable without government support, he asserts that the subsidies are no longer necessary and represent an inefficient allocation of resources. This stance is likely to face resistance from the solar industry and those who advocate for continued public support for renewable energy adoption.
Beyond the purely economic considerations, Birnbaum’s assessment underscores a deepening social-political dimension to Germany’s energy transition. He raised concerns about the potential for the current system to exacerbate inequality, stating that “the energy transition is increasingly becoming a social issue”. Homeowners with capital to invest in solar installations stand to benefit significantly, while renters, often lacking such opportunities, are disproportionately burdened by rising network costs and the overall financial strain of the shift to renewables. This emerging disparity risks fueling social unrest and demands a more equitable approach to energy policy, one that prioritizes affordability and accessibility for all citizens, irrespective of their socioeconomic status. The controversial proposal to halt solar subsidies further highlights a growing divide within Germany’s energy policy, centering on the balance between economic efficiency, social fairness and the accelerated adoption of renewable energy sources.
