Germany’s household electricity price hit 35.6 cents per kWh in Q2 2026. That was the highest household electricity price among G20 economies that quarter.
Germany’s rate was more than double the G20 average of 16.3 cents per kWh.
Germany ranked highest of all of them in Q2 2026 across G20 economies.
Germany still ranks among the most expensive, even adjusted for purchasing power. Only a handful of countries rank higher on that measure.
Assume a household uses 3,500 kWh a year, a common benchmark. At the German rate, that costs more than €1,200 annually.
At the G20 average rate, that same household pays about €570 a year. That’s under half of the German price.
Taxes and Network Fees Make Up Most of a German Household’s Electricity Bill
Generation and supply make up only about a third of your electricity bill in Germany. Network fees, taxes and levies make up the rest.
Germany calls network fees Netzentgelte. They cover the cost of using the electricity grid.
Two independent estimates put the tax-and-fee share close to 60% of a typical household’s 2026 electricity price:
- BDEW estimate: network fees, taxes and levies make up close to 59%
- Verivox estimate: taxes, levies and fees together exceed 60%
The tax-and-fee share is why prices stay high even when wholesale power gets cheaper. Most of your bill isn’t the electricity itself.
Why the government hasn’t cut the electricity tax for households
Germany’s electricity tax (Stromsteuer) stands at 2.05 cents per kWh for households. That’s €20.50 per megawatt-hour.
In November 2025, the Bundestag made a lower tax permanent for industry. Farms and forestry firms got the same rate cut.
Private households were excluded from that law. Experts estimated a household cut would have saved about €83 a year.
The government has confirmed a household tax cut remains off the table. The federal budget has no room for it.
NOTE: The government is subsidizing network fees instead of cutting the household tax. It is putting €6.5 billion toward lower network fees in 2026. The subsidy falls to about €5.5 billion a year from 2027 through 2029. For a household using 3,500 kWh, that is worth roughly €100. That beats the €83 a tax cut would have delivered.
What can you do to lower your electricity bill in Germany?
Three changes can lower your German electricity bill:
- Compare and switch tariffs every year. Many suppliers now offer savings up to 9% thanks to lower network fees. Some households save up to €850 a year by leaving a default “basic supply” tariff.
- Lock in a price guarantee. Choose contracts with a 12 to 24 month guarantee to avoid the next price increase.
- Cut easy consumption. Swap old bulbs for LEDs and switch off devices instead of leaving them on standby.
TIP: Actual savings vary by location, network fee, and usage. The €850 figure is a best case, not typical.
