A new, damning study published by the Cologne Institute For German Economics confirms what critics of renewable energy feed-in acts have been saying, and quite loudly, all along for years: The poor are getting screwed and the rich are benefiting. Redistribution from bottom to top.
The cost in euro-cents per kw-hr that renewable electricity in Germany has added to the price of electricity. Source: BDEW, 2012
That’s why we at NTZ decided to install solar panels on our home. We prefer being on top, and not always the ones getting screwed. My decision had nothing to do with “rescuing the climate”.
Here are some excerpts of the press release by the Cologne Institute:
Poor households are especially burdened
The redistribution effect of the Renewable Energy Act (EEG) is producing a socially precarious situation, a study by the Cologne Institute For German Economics (IW) has determined. Low income earners are burdened by the extra costs stemming from green electricity just as much as rich households.
This is mainly due to the fact that energy consumption changes very little as income rises. That means the financially strained households are significantly more burdened. The planned power price increases will exacerbate this effect even more: The poorest 10% by income have to pay about 1.3% of their income in order to finance the feed-in of renewable energy. With the top 10% by income, they only need to pay 0.2%.
The redistribution effect is further enhanced by the installation of private photovoltaic systems. There are very few solar households among low-wage earners. Among the rich, however, 20% of the households operate a solar power system. In total the approximately 1 million solar households (about 2.5 percent of the more than 40.4 million private households in Germany) received in 2011 a surplus of about 1 billion euros. More than half of this amount flowed to the top three income deciles.”
Summary: When it comes to generating electricity with wind, solar and biogas, it’s the rich, high-income property owners who benefit. The people who end up picking up the tab are the very poor.
It’s no wonder 600,000 households had their power shut off last year because they were unable to pay their electric bills. Welcome to Europe’s compassionate green socialism.