Why Electricity Prices Will Rise in the Future
Electricity Prices Will Rise – Not Because of the Market, but Because of the System
Many Danes believe that electricity prices will fall as we get more wind and solar power. This is a half-truth. The spot price (what you pay for the electricity itself) fluctuates up and down – but today it only constitutes about 25–35% of your electricity bill. The rest is: Grid payments and tariffs Taxes VAT Subscription These parts are increasing – and will continue to increase.
Why? Because the Electricity Grid Needs Massive Modernization and Expansion
Denmark is undergoing the largest electrification since the 1960s: More electric cars More heat pumps More electricity in industry More data and AI More green electricity from decentralized production All of this requires: Stronger cables and transformers Smart meters and control systems Balancing services These investments amount to many billions – and the bill ends up with all of us as consumers.
How Does This Affect You?
Your electricity bill will increasingly be fixed, regardless of what the electricity costs. You will pay more for "being connected to the grid," even if the electricity price itself falls. This makes self-production of electricity more attractive: The more you produce yourself, the less you have to pay in tariffs and taxes. The more you consume directly, the more you save (e.g., DKK 2.50/kWh). The more you store in a battery, the less you have to buy back.
Therefore, Solar Cells Not Only Become Greener – but Also Better Financially as Electricity Bills Get More Expensive
A typical 10 kWp system can produce 10,000–12,000 kWh per year. If you use 40–50% yourself and sell the rest via grid balancing, you will achieve an annual return of DKK 15,000–20,000. This corresponds to an annual return of 15–20% – and a payback period of 5–7 years, depending on consumption and battery. But most importantly: Your savings will be greater the more expensive the electricity grid becomes. Solar cells are your way to take control – and stand more stably in an unstable future.