The economic boom between 1958 and 1973
Around 1958, the Western economic boom reached Denmark. Compared to the period 1950-57, the average annual growth rate doubled to 5% in the years 1958 to 1970.
With the economic growth came a rise in the wealth of society. The wealth could be measured by the increase in consumption of goods, which previously were considered luxury articles, but now became mere necessities. The articles which really got a hold on consumers were refrigerators and other appliances, televisions, cars and new homes.
With cars came the need to expand the road system. And with the new housing demands followed the city redevelopment and the construction of big new neighbourhoods with blocks of flats and single-family houses. As new types of financing became available in the beginning of the 1960s, this set off the biggest construction boom of single-family houses in Danish history.
In 1958, 20,000 new homes were built, but that number increased to 50,000 new units built each year in 1969. This explosive development continued until 1972, which was the busiest year in that period of time with the construction of 64,000 new homes.
The oil crisis stops the consumption extravaganza in 1973
In October 1973, the vivid consumption reaches a stop due to the oil crisis, which makes the oil prices sky rocket. The Arabic oil manufacturing countries reduce their production dramatically, shut down export to several countries and quadruple the oil prices in just a few weeks.
In Denmark, oil makes up 90% of our energy consumption in 1973. Therefore, the crisis hits hard and impairs the Danes’ everyday life with a considerable price rise in heating oil and fuel. The government initiates rationing of oil, gas and petroleum. They also agree on a range of statutory energy saving initiatives, which among others included the rather spectacular enforcement of lowered speed limits and car free Sundays, inspired by Dutch and Western German role models. Stores are no longer allowed to light up their shops after closing and 1973 became the year without any Christmas lights in the streets.
The Danes turned down the heat and cut back on expenses
In the reverberations of the oil crisis, Solar focused on automated heating together with Honeywell and AEG. They built up an assortment of energy saving products consisting of heat pumps, heat exchangers for heat recovery systems etc.