Briefly: In 2026, electricity in Germany costs an average of around 37 cents per kWh — cheaper than in 2025. The basic Grundversorgung tariff is the most expensive (~42 ct); by switching to a tariff for new customers (~24 ct), a household saves between roughly 270 and 770 euros a year — depending on how many people live there.
Germany is one of the countries with the most expensive electricity in the world. After the peak of 2022–2023, prices have fallen noticeably: in 2026 the average price for households is around 37 cents per kWh (according to BDEW) compared to ~39 cents in 2025. At the same time, the difference between tariffs is huge — and you can save money on it.
Electricity became cheaper in 2026 mainly because of lower grid charges (Netzentgelte): the state is paying €6.5 billion towards the transmission grid, and according to BDEW this part of the price has fallen by an average of 1.7 cents per kWh. Wholesale prices are rising again, but so far this has hardly been passed on to tariffs for new customers.
The main benefit is in the difference in tariffs. In the basic tariff (Grundversorgung) electricity costs about 42–43 cents per kWh, whereas tariffs for new customers (Neukundentarife) start at 23–25 cents. The difference is almost twofold, so switching supplier (Stromanbieter wechseln) is more advantageous than ever — find a good value electricity tariff in just a few minutes.
How much electricity does the average household use?
In Germany, in a block of flats, two people consume on average 2’000 kilowatt-hours of electricity per year, and in a detached house — 3’000 kilowatt-hours. Given an average price in 2026 of around 37 cents per kilowatt-hour, this amounts to approximately 740 and 1,110 euros a year. However, if you switch to a tariff for new customers (~24 cents), the same volumes will cost approximately 480 and 720 euros — savings of around 260–390 euros a year. And if you are currently on the basic Grundversorgung tariff (~42 cents), switching suppliers will save you roughly 360–540 euros a year.
Furthermore, if the house uses an electric water heater, electric heating or underfloor heating, this significantly increases electricity consumption.
- With an electric water heater
- Without an electric water heater
Source: Stromspiegel 2023
Average electricity costs in 2026 (estimated):
| Household | Annual consumption | Basic rate (~42 ct) | For new customers (~24 ct) |
|---|---|---|---|
| 1 person | ~1’500 kWh | ~630 € | ~360 € |
| 2 people | ~2’500 kWh | ~1050 € | ~600 € |
| 3 people | ~3’500 kWh | ~1470 € | ~840 € |
| 4 people | ~4’250 kWh | ~1785 € | ~1020 € |
How do I sign a contract with an electricity supplier in Germany?
Moving into a new flat can be quite stressful and involve a lot of red tape. The good news is that you won’t be left without essential utilities such as electricity, water and heating. If you do not set up a contract yourself, one will be set up automatically at the standard rate charged by the local utility company. The bad news is that this rate may be higher than the average for your town.
We recommend that you arrange a contract with an electricity supplier yourself, by selecting the best-value tariff using well-known comparison websites such as CHECK24. This way, you can save between roughly 270 and 770 euros a year.
A move comes with one more contract that people think of less often than the electricity supply. Within Germany, your home contents insurance (Hausratversicherung) carries on when you change flats: both homes are covered while you move, the old one usually for up to two months. You do have to tell the insurer about the new address and the floor area no later than the day you start moving in, and the premium may then be recalculated. If you have no policy yet, look first at what Hausratversicherung covers and where its limits are. And if you are not sure you need it at all, we can go through that in a consultation.
Is it possible to switch electricity suppliers?
Of course! And we recommend checking prices and rates from time to time, as companies often offer better deals to new customers.
How does the change of supplier take place?
1. Prepare the necessary data and determine the deadlines.
If you have your most recent electricity or gas bill, you can determine your annual consumption, which is important data when choosing a new supplier. The bill also indicates the next possible cancellation date for your current contract. If your contract has more than three months left to run, you should postpone your search for a new energy supplier. Offers on the market are constantly changing and new interesting deals appear.
If you have just moved or have never changed your tariff, you are most likely on a standard tariff from your regional default supplier. You can terminate the contract at any time with 14 days’ notice.
You can find the consumption on your gas or electricity bills. If you do not have data for a whole year, calculate it based on average monthly readings. In the case of gas, you should bear in mind that gas consumption is distributed unevenly throughout the year. You also need to take into account, if you have electric heating, that consumption in the colder months is significantly higher.
If you do not know your consumption, choose the standard values offered by online tariff calculators on aggregator portals. They are based on the number of people consuming electricity and the size of the flat.
2. Select a new tariff.
What to look out for:
— the more accurately you have determined your average annual consumption, the more advantageous a tariff you will be able to choose.
Most often, the tariff consists of:
— a standing charge (Grundpreis), i.e. a fixed amount in euros per month that does not depend on consumption;
— the cost of the electricity actually consumed (Arbeitspreis) in cents per kilowatt-hour.
Depending on your consumption pattern, a tariff with a low standing charge but a high price per kilowatt-hour – or vice versa – may be the most cost-effective option.
Once you have made your choice, take a screenshot showing the key details of the tariff, particularly the terms and conditions for earning bonuses. Compare this screenshot later with your order confirmation. This screenshot may be helpful should any discrepancies arise with your new supplier.
3. Enter into a new contract and terminate the old one.
Once you have decided on a tariff, you can sign a new contract either directly with the supplier or via a tariff comparison website. In either case, the new supplier will cancel your previous contract on your behalf, provided you give them the necessary authorisation.
Please note: You must terminate the old contract yourself if the time to cancel the old contract is very tight! If the notice period is about to end and the contract is automatically renewed, you must cancel it yourself.
This also applies to non-standard termination cases, for example due to a price increase by the current supplier. In non-standard cases, do not rely on the new supplier and terminate the contract yourself. Be sure to inform the new provider that you have already sent a termination notice to the old supplier. It is often possible to tick the relevant box on the new supplier’s order form, for example: “I have terminated my old contract myself.”
A new electricity or gas contract is considered to have been concluded as soon as the new supplier sends you the signed contract, stating the expected start date. You should compare the prices and terms of the contract with the information in your application.
Your previous supplier will send you the final settlement statement. They have six weeks from the end of the contract to do so.
4. Please note your right to cancel the contract (Widerrufsrecht)
If you have entered into a contract online, you have the right to withdraw from the contract without giving a reason.
This applies not only to online contracts, but also to contracts that you enter into by telephone or in writing.
You may withdraw your consent within 14 days of receiving instructions on the rules governing the cancellation of the contract. As a rule, this is the day the contract is concluded, because along with your order confirmation you will also receive instructions regarding your right to cancel the contract and a cancellation form. However, if you entered into the contract on the supplier’s premises, you do not have the right to cancel.
5. Submit your meter reading
Take a meter reading on the day of the changeover. To avoid any misunderstandings, please inform the regional network operator and your old and new electricity or gas suppliers of the meter reading.
6. Plan for the next change of supplier.
You should mark the next possible end date or the time when you wish to compare prices again in your calendar, so that you don’t miss any deadlines.
Frequently asked questions about electricity prices in Germany
How much will electricity cost in Germany in 2026?
On average, around 37 cents per kWh (according to BDEW). The basic Grundversorgung tariff is more expensive (~42 cents), whilst tariffs for new customers start at 23–25 cents.
How much does a family pay for electricity each year?
Approximately from 360 euros (1 person, special rate) to 1,800 euros (4 people, standard rate). The exact amount depends on consumption and the rate.
Is it possible to switch electricity suppliers?
Yes. Switching is free and the power is never cut off for a moment — the new supplier handles the formalities. Notice periods, terminating the contract and your rights when the price goes up are covered in detail on the page how to switch electricity supplier.
How long does it take to switch energy suppliers (Stromanbieter wechseln)?
Usually between 2 and 6 weeks. For online contracts, the right of withdrawal (Widerrufsrecht) applies for 14 days.
What is Grundversorgung and why is it so expensive?
This is the local supplier’s “default” tariff. It is the most expensive; switching to a market-based tariff saves hundreds of euros a year.
And what about gas and heating prices?
It is worth comparing utility costs together: see gas prices in Germany and Gas heating in Germany.
A power surge destroyed your electronics: does anyone pay?
A power surge (Überspannung) in the grid after a thunderstorm or a fault destroys everything plugged into a socket at once: the fridge, the router, the TV, the electronics of the heating system. Two cases have to be told apart. A direct lightning strike hitting your household contents is a standard risk in contents insurance. Damage caused by a surge, however, sits in a separate add-on module (Zusatzbaustein) in most policies, and if that module is not in the contract, the insurer will not pay for the burnt-out devices.
Whether that module is in your policy is better checked before the next thunderstorm than after it. What contents insurance (Hausratversicherung) covers and what it costs is explained on a separate page.
-
Mahnverfahren: how to recover a debt in Germany without a lawsuit or a court hearing
-
Deutsche Bahn Familienticket for 99,99 € is now permanent: conditions and catches
-
What changes in Germany in October 2026
-
Dental insurance before the year ends: when the “short first year” really works
-
Methods of earning pension points — Entgeltpunkte
Image by pch.vector