Yes you're right and I don't disagree. But a 500w heater isn't going to cut it when it's 20F outside. You actually have to run the heat as hard as possible when the sun is shining so you have some thermal momentum going into the evening.
The end result is you're going to make big lifestyle changes to accommodate the energy. For example everyone sleeping in 1 bedroom and only cooking with an electric pressure cooker or low and slow with an induction range.
You could put that 500W into a heatpump.
A house built to passive house standards requires less than 10w per sqm of peak heating demand, a 500w toaster will warm 50sqm, which is a decent room already.
There are passive houses built at 2000m altitude in the Alps, some are made of wood and have literal strawbales for insulation, there are no excuses left in 2026 not to build good houses, it's more economical, more practical, more comfortable, more ecological