How smart cooling turns heatwaves into savings for European homes
Munich, July 28th: Europe faces increasingly hot summers and rising air-conditioning (AC) usage. Thanks to an abundance of solar energy production during summer days, electricity prices are dropping - and more often than ever, turning negative. From January to May 2025 Germany recorded 248 hours of negative electricity prices, which is 7x more than 2022(1). tado° is helping households to tap into this growing opportunity and cool their homes at the lowest cost.
(1) Source: Energy Charts
High demand for cooling
The demand for cooling in European homes has soared, with electricity demand surging by up to 14% during this summer’s heat wave - driven largely by increased AC use(2). Projections indicate the number of Room Air Conditioners (RACs) in the EU could exceed 100 million by 2030 (European Commission(3)).
This rising demand coincides with Europe’s increasing investment in renewable energy, particularly solar and wind, which is now creating unprecedented instances of electricity oversupply. During these times, often around midday, wholesale electricity prices often drop below zero. This presents a unique opportunity for smart energy use at home.
(2) Source: Ember Energy https://ember-energy.org/latest-updates/european-heatwaves-push-up-daily-power-demand-by-up-to-14/
(3) Source: European Commission. https://energy-efficient-products.ec.europa.eu/product-list/air-conditioners-and-comfort-fans_en?
Customers benefit from negative prices
Smart, cost-saving cooling is made possible by dynamic hourly electricity tariffs - where the cost of electricity changes each hour based on real-time wholesale prices. When households shift their consumption to times when energy is cheap (or even free), they can cut costs, especially when using devices with higher energy demands such as electric cars, heat pumps and air conditioners.
tado° smart cooling - how it works
tado° is at the forefront of this shift, enabling households to tap into this "free cooling" potential. By combining the tado° Smart AC Control with dynamic electricity tariffs and intelligent scheduling, the system activates air conditioning units during these negative pricing windows. This allows homes to pre-cool or maintain comfortable temperatures without incurring any energy cost. The tado° Smart AC Control is easy to install:By pressing a single button on your AC remote control the tado° Smart AC Control recognizes your AC model and the installation is done in a few minutes. tado° is compatible with all popular AC brands like Midea, Samsung, Daikin, Toshiba, Panasonic, Haier, Fujitsu and more, that is in total more than 500 ACs.
A win for your wallet and the Planet
"The concept of negative electricity prices is a game-changer for energy consumers," says Christian Deilmann, Co-Founder & Managing Director of tado°. "We're transforming what was once a challenge – hotter summers and energy demand peaks – into an incredible opportunity. Not only do households save significant money, but this smart utilization of surplus renewable energy also plays a vital role in stabilizing and relieving pressure on our national grids, fostering a more sustainable energy future for Europe."
This initiative offers a practical, immediate solution to both rising energy costs and the environmental impact of increased cooling demand. It underscores how technological innovation can empower consumers to become active participants in the energy transition.
Cooling homes in hot summer now becomes affordable for many European households.
Press Material
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About tado°
tado° is the leading vendor agnostic European provider of intelligent home energy management solutions. Founded in Munich in 2011, the company offers households one simple, easy-to-use platform to control their energy consumption and significantly reduce costs while also driving the green energy transition.
tado°’s hardware, software and services deliver simple and efficient home climate management, intelligent electric vehicle charging and dynamic energy tariff and photovoltaic integration on one platform. The objective is to offer maximum comfort and savings while automatically shifting electricity consumption to the cheapest and greenest hours of the day.
tado° is the only vendor agnostic platform, providing compatibility to most vendors of home energy equipment. In 2022, tado° acquired aWATTar, a pioneer in the field of dynamic energy tariffs, as part of its vision to offer a complete yet simple home energy management solutions package that reshapes the way energy is consumed for more comfort, savings, and in sync with nature.
Press contact
Simone Kemmner
tado GmbH
Sapporobogen 6-8
80637 München
press@tado.com