Why Electric Cars and Heat pumps will win over inevitably

In the race toward sustainability, some of the most impactful innovations aren't always the flashiest—they're the ones quietly transforming how we live, move, and stay comfortable. Over the past two decades, technologies like LED lighting, Battery Electric Vehicles (BEVs), and heat pumps have emerged as game-changers in everyday energy use. Their common trait? Remarkably improved efficiency that translates directly into lower energy bills and a smaller carbon footprint.

This blog explores how these technologies compare to their conventional counterparts—incandescent bulbs, petrol and diesel cars, and traditional heating systems—through a series of practical case studies based on typical households in Germany. Using real-world consumption patterns and energy prices, we quantify just how much these modern solutions can save in cost and energy, and why their adoption is no longer just smart, but essential.

LEDs: A Benchmark of Success

To fully understand the potential success of BEVs and heat pumps, consider how LEDs became dominant. Before the widespread use of LEDs, incandescent bulbs were the norm. However, incandescent bulbs were exceedingly inefficient, converting only about 2 - 5% of their energy into light and losing the rest as heat. LEDs, on the other hand, transformed lighting by providing a staggering increase in efficiency—up to 60% of the energy utilized by LEDs is converted into light, with minimum waste. This efficiency increase, combined with LEDs' longer lifespan and lower costs, resulted in rapid adoption across a variety of industries. In a few decades, LEDs grew from being a niche product to the worldwide standard, driven by a combination of customer demand, governmental support, and technological advancements.

Case Study: Comparative Operative Energy Costs for Lighting in a Mid-Size Apartment Block in Germany

To understand the real-world benefits of switching to energy-efficient lighting, consider a typical 100 m² household in Germany. With an estimated lighting demand of around 1000 watts to meet an average requirement of 200 lumens per square meter, and assuming 8 hours of daily usage (or 2,920 hours annually), lighting can make up a significant portion of a household’s electricity bill. At an energy cost of €0.30 per kWh, the table below compares the energy consumption, efficiency, and annual operating costs of traditional incandescent bulbs versus modern LED lighting:

Technology	Efficacy	Efficiency	Energy Consumption (kWh/year)	Cost (€ / Year)
LED (10W/sqm, 8h/day)	100 lumens/Watt	50%	468	€140
Incandescent Bulbs (60W/sqm, 8h/day)	15 lumens/Watt	5%	2,920	€876

Replacing incandescent bulbs with LEDs can cut lighting expenditures by approximately 84% (€876 to €140). LED bulbs are a lot more energy-efficient choice, reducing both energy usage and overall expenditures. This analysis highlights the cost benefits of switching from incandescent to LED bulbs in household settings.

Battery Electric Vehicles: The New Standard in Transportation

Battery Electric Vehicles (BEVs) are redefining transportation in the same way LEDs revolutionized lighting. Traditional Internal Combustion Engine Vehicles (ICEVs) have powered mobility for over a century—but they’re inherently inefficient. ICEVs typically convert only 20–30% of the energy from fuel into motion; the rest is lost as heat, noise, and friction.

In contrast, BEVs are highly efficient, converting 75 – 80% of the stored electrical energy into movement. This leap in drivetrain efficiency, coupled with lower energy costs, minimal maintenance, and zero tailpipe emissions, makes BEVs not just cleaner, but also economically smarter for everyday use.

Case Study: Comparative Operative Energy Costs for Commuting in Germany (Based on 34 km/day)

This comparison uses a realistic daily commute of 34 km over 365 days, totaling 12,410 km annually—a typical driving pattern in Germany. The analysis compares fuel and electricity costs for petrol, diesel, and electric vehicles.

Technology	Energy/Fuel Consumption	Efficiency	Cost per Unit (€)	Cost (€ / Year)
ICE Petrol	744.6 litres  (12,410 km x 6L/100 km)	25%	€1.80/litre	€ 1,340
ICE Diesel	620.5 litres (12,410 km x 5L/100 km)	30%	€1.60/litre	€ 993
BEV	1,862 kWh (12,410 km x 15 kWh/100 km)	80%	€0.30/kWh	€ 559

Key Takeaways

• BEVs cost ~59% less to run annually compared to petrol cars. 

• BEVs cost ~44% less than diesel cars. 

•  The savings increase with higher mileage and local charging options.

Just as LEDs replaced inefficient bulbs, BEVs are on track to replace fossil-fueled vehicles. Their superior energy efficiency, lower cost per kilometer, and environmental advantages make them the new standard in clean, smart mobility.

Heat Pumps: Revolutionizing Heating and Cooling

Heat pumps are another example for technology similar to the likes of LEDs and BEVs, they provide a significant increase in efficiency over older systems. Conventional heating systems, such as gas furnaces or electric resistance heaters, typically have an efficiency of around 1:1, which means they generate one unit of heat for every unit of energy spent. Heat pumps, on the other hand, can attain efficiency of 300-400%, or 3 to 4:1 ratio, by transporting heat from the air, earth, or water into a building rather than producing it through combustion. In cooling mode, heat pumps surpass standard air conditioners, making them a versatile and effective alternative for both heating and cooling. This dual capability, combined with large energy savings, makes heat pumps an important technology for lowering household and business energy usage.

Heat pumps are gradually becoming acknowledged as the future of temperature management, much like LEDs have become the standard in lighting. Their use is being driven by technological breakthroughs, lower costs, and a growing emphasis on decreasing greenhouse gas emissions. Heat pumps are already becoming used in milder climates, and as technology advances, their use is projected to spread to colder locations as well.

Table of comparison reference: 2 person household with 100 m² area

Comparison Factors	Boiler (Gas)	Boiler (Oil)	Electric Heater	Heat Pump
Energy source	Natural gas	Fossil fuel	Electricity	Electricity
Efficiency (CoP)	~90% (0.9)	~85% (0.85)	100% (1.0)	~300% (3.0)
Energy spent to produce 1kWh of heat	1.11 kWh of gas	1.18 kWh of oil	1 kWh of electricity	0.33 kWh of electricity
Total Annual Energy consumption	~13,100 kWh of gas	~13,900 kWh of oil	~11,800 kWh of electricity	~3,750 kWh of electricity
Energy cost per kWh (2024)	~€0.12 (gas)	~€0.14 (oil)	~€0.30 (electricity)	~€0.30 (electricity)
Annual energy cost for 100 m²	€1,572	€1,946	€3,540	€1,125

Contrary to the conventional technologies for space heating in households (Boilers and Electric heaters), modern day heat pumps offer a remarkable improvement in energy efficiency and lower carbon footprint. Similar to LED and BEV technologies, heat pumps have the definitive potential to inevitably be the future for driving Energy 4.0.

Summary

This case study analyzes the operating energy costs for lighting, heating, and commuting in a mid-sized apartment complex 100 m² living space. It compares traditional technologies with modern energy-efficient alternatives, using a standardized energy price for each energy source. The analysis is based on average consumption patterns in Germany across all categories.

Category	Technology	Energy Consumption (kWh/year)	Cost	Savings
Lighting (for 100 sqm living space)	Incandescent Bulbs	2,920 kWh	€876	84%
	LED Lighting	468 kWh	€140
Commuting (Average: 12,410 Kms/Year)	Petrol ,745 Litres	6,630 kWh	€1,340	58%
	Diesel, 620 Liters	6,570 kWh	€993	44%
	BEV ((12,410 km x 15 kWh/100 km)	18,615 kWh	€559
Heating (for 100 sqm living space)	Gas	13,100 kWh	€1,572	29%
	Oil	13,900 kWh	€1,946	42%
	Electric heater	11,800 kWh	€3,540	68%
	Heat Pump	3,750 kWh	€1,125

The table compares the energy usage and prices of several technologies for lighting, transportation, and heating. It emphasizes the large energy savings and cost reductions associated with modern technology, such as LED lighting, battery electric vehicles (BEVs), and heat pumps, as opposed to traditional alternatives such as incandescent bulbs, gasoline-powered automobiles, and oil or gas heating.

Conclusion

This case study highlights the impressive cost-saving potential of modern energy-efficient technologies for a medium-sized apartment in Germany with 100 m² of living space:

• Lighting: Switching from incandescent to LED bulbs improves efficiency by a factor of 6, reducing lighting expenses by up to 84%.

• Commuting: Transitioning from internal combustion engine (ICE) vehicles to BEVs triples efficiency, cutting commuting costs by approximately 58%.

• Heating: Replacing fossil fuel systems with heat pumps increases efficiency fourfold, reducing heating costs by more than 68%.

Across all three sectors, efficiency improvements range from 3× to 6×, resulting in substantial reductions in operating costs.

These savings not only provide strong financial incentives but also support a more sustainable and climate-friendly lifestyle. The combined economic and environmental case for adopting LEDs, BEVs, and heat pumps is not just compelling—it’s increasingly essential. The transition is already underway, and with continued technological progress and supportive policies, these innovations are set to become the standard.

A glimpse into the future

• LEDs lead the way: Their rapid and widespread adoption demonstrates how quickly efficient technologies can replace outdated systems when cost and performance align.

• The next wave—BEVs and heat pumps: These technologies are following the same trajectory, with efficiency and accessibility steadily improving.

• Untapped potential with renewables: While this analysis excludes solar energy, integrating local generation—especially for BEV charging—can enhance both savings and independence from the grid.

• Resilience amid uncertainty: As fossil fuel prices remain volatile due to global tensions, the economic case for clean, locally powered solutions becomes even stronger.

• Level playing field: If renewable and fossil energy prices converge, clean technologies will dominate not just for environmental reasons, but because they’ll be the most practical and affordable choice.

In short, LEDs have shown us what’s possible—and BEVs and heat pumps are poised to follow. The future is efficient, electric, and increasingly within reach.

The next article, "Heat Pump - a perpetuum mobile?" will explore the cutting-edge Heat Pump Technology driving major efficiency gains in terms of energy usage. Stay tuned to discover how these innovations are shaping a more efficient and sustainable future.