Business
How Energy Prices Are Driving Demand for Solar Panels and Heat Pumps
Across Europe, the lesson from an old proverb just might be taking hold: Fool me once, shame on you; fool me twice, shame on me.
For the second time in under five years, Europe is contending with an energy crisis set off by a war. Europeans have responded to the price shock by rushing to line up heat pumps, solar panels and electric vehicles. They are hoping to lower their bills and reduce their reliance on imported fossil fuels.
In March, the first month of the war in the Middle East, more than 344,000 electric vehicles were registered across Europe, over 40 percent more than a year earlier, according to the European Automobile Manufacturers’ Association. Solar panel sales for Britain’s biggest power company, Octopus Energy, jumped 50 percent. And in Germany, inquiries about residential solar systems doubled compared with recent months, according to E.ON, an energy company.
Over the first three months of the year, about 575,000 heat pumps were sold in 11 large European countries, up 17 percent from a year earlier, the European Heat Pump Association said. The increases were particularly large in France, Germany and Poland.
For Heizma, an Austrian company that installs heat pumps, solar panels and other residential electrification services, sales in March and April broke records.
Since the war stopped a vast majority of fuel shipments through the Strait of Hormuz, the price of European natural gas, which is relied on to heat homes and power factories, has risen about 40 percent.
As prices spiked, interest in alternative energy supplies kept rising. Michael Kowatschew, a founder of Heizma, said customer inquiries were up 20 percent. Many of them invoked the importance of “resilience” and “European sovereignty.”
Russia’s invasion of Ukraine in 2022 was a jolt for Europe, which had been dependent on Russia for critical supplies of energy. European governments turned to other gas and oil exporters, including the United States.
Europeans are noticing “more and more how dependent we are not only on fossil fuels but, through fossil fuels, on other countries and other regions,” Mr. Kowatschew said.
The European Union has spent an additional 24 billion euros on energy imports in under two months, said Ursula von der Leyen, the president of the European Commission.
“Households are now seeing that they are only one Trump-ignited war away from very expensive tank refueling or heating bills,” said Elisabetta Cornago, an energy and climate policy expert at the Center for European Reform.
This “shock-awareness factor” means that demand for electric vehicles, heat pumps and solar panels is likely to keep rising, she said.
Demand has increased even as European governments have started to cut taxes on energy bills and diesel and gasoline at the pump to shield households. The costs of solar panels and electric vehicles, still out of reach for some households, are becoming more affordable. Last week, Volkswagen, Europe’s largest automaker, revealed a new electric vehicle model with a starting price under €25,000 (about $29,000), more than 25 percent below a comparable VW popular model.
In Britain, the government said it would allow the sale of plug-in solar panels within the next few months. These devices, which can be attached to a balcony, can help curb energy bills and don’t require the more expensive installation of rooftop panels. They will be widely available in supermarkets and online.
In the meantime, rooftop solar has become more popular. Danny Hirst, the managing director at the Green Way Solar, which installs solar panels in England, has noticed a sharp increase in interest. Last fall, his company was receiving about 10 inquiries a week. Now, it sometimes gets 20 in a single day, he said.
“The general feeling that we’re hearing from clients now is that they’re just getting fed up with the uncertainty of energy prices,” Mr. Hirst said.
But will the interest be sustained? Companies and business groups said it was too soon to know.
For customers, there’s red tape. It can take weeks or months, partly because of regulatory approvals, for a customer to go from deciding to buy a heat pump or solar panels to installing them.
Then there is the push-pull issue of government policies over financial incentives or subsidies, which can drive consumer demand but cause it to taper if they are not designed properly.
Since the war started, countries across Europe have already put in place short-term measures to lower energy costs — more than €10 billion worth, according to an estimate by Bruegel, a think tank in Brussels.
The measures, such as tax cuts on gas at the pump and electricity bills, are predominately aimed at large parts of the population. Experts said governments should target their assistance to the most vulnerable households, while spending more to subsidize low-carbon energy.
This has echoes of the crisis from 2022. At the time, Europe had suddenly shifted away from Russian gas imported via pipelines, a prominent source of fuel. Energy prices rose sharply. Demand for electric vehicles, solar panels and heat pumps jumped.
But when Europe found other sources of natural gas and prices dropped from their peak, interest in renewable technologies waned. Meanwhile, governments had spent hundreds of billions of dollars to shield households and businesses from high energy costs, further reducing the urgency for households to switch to renewables, some analysts said.
Simone Tagliapietra, an energy and climate policy expert at Bruegel, said the lesson for policymakers from 2022 was that they should increase their support for low-carbon technologies, not broad based-measures that cheapen energy from oil and gas. The moment, he said, presents an opportunity for governments.
“We are facing a full-fledged oil and gas crisis,” Mr. Tagliapietra said.
At the same time, history shows that financial incentives needed to sustain consumer interest in technologies like solar panels must be consistent.
Mr. Hirst of the Green Way Solar has been in the solar industry for nearly a dozen years and has experienced the market’s ups and downs. There was a boom right after the 2022 crisis, he said, but then sales dropped. The promise of subsidies drove up interest in renewable technologies, but consumers then waited to make sure they received a subsidy before deciding to install solar panels or heat pumps.
There is a risk that this could happen again.
In Austria, demand for heat pumps dropped in the first three months of this year when some government funds for subsidies ran out.
Mr. Kowatschew at Heizma, the Austrian installation firm, said he was cautious about expanding too quickly. The company was established only two years ago. Its focus is on finding ways to make the installation process faster and more efficient so that workers can outfit two heat pumps a week instead of one, he said.
Still, business is good. Heizma made about €2 million in revenue in April, he said.
“Everyone now knows electrification makes sense,” he said. “It makes a lot of sense to switch to heat pumps, to solar and green electricity.”
Rivian said it’s laying off hundreds of employees, or less than 2% of its workforce, as part of restructuring efforts aimed at making the company profitable for the first time.
The layoffs come one week after the Irvine-based electric vehicle maker began deliveries of its highly anticipated R2 SUV.
The company is hoping that the R2, which is currently only available as a performance version for $57,990, could attract more customers with its lower price tag.
But industry analysts said the performance R2 is still not affordable for many Americans, and investors reacted with disappointment to the first deliveries June 9, with shares falling 7% that day. On Wednesday, Rivian shares gained .33 points, or 2%, to close at $16.26.
The company said a standard version of the R2 starting at $44,990 will become available next year.
The layoffs took effect on Monday and affected Rivian’s service and customer organization employees, including sales and marketing teams. Rivian employed 15,232 people as of December.
“We recently restructured a handful of teams within Rivian as we work to profitably scale our business,” a company spokesperson said.
The laid off employees have been provided with severance packages and are encouraged to apply for other open roles with Rivian, the company said.
Rivian may be trying to reach profitability by saving money on labor, said Ivan Drury, director of insights at Edmunds.
“You have to wonder to what degree they do plan on replacing those people with some level of AI and automation,” he said.
Rivian, which is pouring money into autonomous vehicle efforts including a robotaxi partnership with Uber, has struggled to turn a profit with its luxury EVs.
The layoffs are likely not directly tied to recent reception of the R2, auto analyst Brian Moody said.
“I think that it’s declining interest in new electric cars, and maybe declining interest in expensive things,” he said. “We can surmise that [layoff] process began long before the R2 launch.”
The company lost $3.6 billion last year and recently said it is no longer expecting to meet its 2027 adjusted core profit target.
There has been a broad cooling of the EV market. Major automakers including Honda and Ford have cut back their EV options as excitement for the vehicles has fallen under the Trump administration. A $7,500 EV tax credit for new vehicles expired in September.
Rivian cut 4.5% of its workforce in October, or more than 600 jobs, following the expiration of the credit. The company also laid off about 200 employees in September.
In a recent turnaround, Rivian surprised the market with strong earnings results in February, reporting gross profits for 2025 of $144 million compared with a net loss in 2024 of $1.2 billion. Gross profit is revenue without subtracting the cost of production expenses.
In its earnings release, Rivian credited the swing to “strong software and services performance, higher average selling prices, and reductions in cost per vehicle.”
“The company has never posted a full year’s worth of profit, and this is the one lever they can pull to rightsize things,” Drury said.
Social media company Snap showcased a pair of its $2,195 augmented reality glasses Tuesday, staking a claim in a race to reshape how people interact with computers.
The Santa Monica tech company faces fierce competition as it takes on bigger rivals such as Meta that are dominating the sale of smart glasses and needs to convince more people to buy another gadget. Google is planning to release smart glasses in the fall and Apple is reportedly working on a pair as well.
The announcement also shows how the rising popularity of artificial intelligence-powered tools is fueling the release of hardware beyond the smartphone. While Snap and Google have failed to get consumers to buy smart glasses in the past, tech companies have been doubling down on the idea.
In a speech at the AWE conference in Long Beach, Snap’s chief executive and co-founder Evan Spiegel highlighted how people could do more with its AR glasses, Specs, than with rival products. He views the glasses as the next “major leap in computing.”
People can learn to play the drums, figure out how to fix their car, watch videos and more with the glasses, which are now available for preorder and are expected to ship in the fall. Augmented reality involves overlaying digital objects onto a person’s view of the physical world.
“The smartphone put our lives in our pockets, but augmented reality puts computing into the world where life actually happens, and that is the shift from phones to Specs,” Spiegel said.
Meta sells a variety of AI glasses, including a more expensive pair with a display and wristband that lets people ask questions to an AI assistant and answer calls and texts, along with other tasks. It’s also worked on a prototype of AR glasses called Orion.
Meta has a reputation of incorporating features released by Snap, the parent company of disappearing messaging app Snapchat. That has included a popular feature where photos and videos vanish in 24 hours.
“Those copycats up north aren’t going to be stealing this one,” said Spiegel, as the crowd erupted into applause and laughter.
While smart glasses aren’t as popular as smartphones, sales have grown.
Meta, which has a partnership with Ray-Ban, is leading in the sale of smart glasses without displays, according to the International Data Corporation. Roughly 2.25 million units of these glasses shipped in the first quarter of this year, a 167% jump year-over-year.
“Dethroning the giant that is Meta won’t come easy,” wrote Jitesh Ubrani, an IDC research manager in a post this week about smart glasses. “Meta’s core advantage isn’t just market share; it’s distribution.”
Meta has been expanding its retail footprint, opening up new stores in California.
But Snap will have to convince people that it’s worth paying $2,195 for a pair of AR glasses with more tech features. Spiegel pointed to the hefty price tags of the Mac in 1984 and Apple’s $3,500 mixed-reality headset.
“New computers almost always begin as something that just a few people can really afford,” he said.
On Tuesday, Snap’s share price dropped about 10%, closing at roughly $5.16.
Snap’s big bet on AR glasses comes at a crucial point for the company, which slashed 16% of its full-time workforce, or 1,000 workers, in April to cut costs. Snap this year also ended a deal with AI company Perplexity that was expected to bring the social media company $400 million.
Los Angeles fund manager Capital Group has completed its $210-million purchase of the Bunker Hill skyscraper it already occupied as a renter and vows to continue expanding its downtown presence.
Capital Group was an anchor tenant at Bank of America Plaza, which it will now operate as a landlord. The 55-story tower at 333 S. Hope St. was completed in 1974 and has long ranked as one downtown’s most prominent office addresses. Capital Group has been headquartered there since 1978.
Bank of America Plaza at 333 S. Hope St. was purchased by investment firm Capital Group. The building also houses the firm’s headquarters.
(Robert Gauthier / Los Angeles Times)
The move to buy the building at a substantial discount to its previous value is part of a pattern of well-heeled tenants deciding to become owners instead of renters in recent years as office property values plunged due to the pandemic and a shift to remote work for many companies.
“We knew the best landlord we could possibly have would be ourselves,” said Capital Group Chief Executive Mike Gitlin when the sale was first announced in April.
Bank of America Plaza’s previous owner, Brookfield Properties, defaulted on a $400 million loan and put the building on the market instead of facing foreclosure.
It was the largest office sale in Los Angeles in 2026 and the largest in Los Angeles County since 2023, according to real estate brokerage Colliers, which marketed the property on behalf of the court-appointed receiver.
Potential buyers competing for Bank of America Plaza included both private and institutional investors from the U.S. and overseas, said Mark Schuessler, a broker at Colliers.
Capital Group has been headquartered in downtown Los Angeles since it was founded in 1931, according to Chief Operating Officer Rob Klausner . “We view it as the ideal location to invest in as we bring our Los Angeles based teams together,” he said.
Capital Group is the largest occupant in the building, taking up 350,000 square feet on 14 floors. It plans to gradually take over another five floors as it consolidates employees from other offices downtown and in Santa Monica.
“The best way to ensure a great environment in downtown L.A. is to create what we’re calling a vertical campus” with 2,100 employees, Gitlin said. “It was just this unique opportunity where the price was much lower than it had been historically, and it was for sale.”
Bank of America is also a large tenant in the building and will continue to have its name on top. Other occupants include economic consulting firm Analysis Group Inc., law firm Musick Peeler & Garrett and Alliant Insurance Services.
Capital Group has more than 9,000 employees in 34 offices in multiple countries. It manages $3.4 trillion in assets for millions of wealth management and institutional clients, a representative said.
Owner-users have surged as key players in L.A.’s office market, now accounting for nearly half of all deals, according to real estate data provider CoStar , while institutional investors’ share of purchases has fallen from 45% to 26%.
Office users from the public sector are among the buyers. The city of Los Angeles plans to buy a 35-story tower downtown for use by the Department of Water and Power.
Manulife U.S. Real Estate Investment Trust said in April that it would sell its high-rise at 865 S. Figueroa St. for $92.5 million pending approval from Los Angeles officials. It has an assessed value of $248 million.
Another major public buyer of a downtown office building was Los Angeles County, which in 2024 bought Gas Co. Tower for $200 million, a steep drop from its $632-million valuation in 2020. County officials said at the time that the foreclosure sale was too good a deal to pass up.
The county is gradually moving workers into the 55-story skyscraper at the base of Bunker Hill that was widely considered one of the city’s most desirable office buildings when it was completed in 1991.
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