Electricity prices in Germany

Germany has a liberalised retail market with hundreds of suppliers, and every household can switch away from the default local supplier, the Grundversorger. Wind and solar are now the largest sources of generation, backed by gas and coal plants, after the last nuclear reactors were closed; the grid is tightly linked with neighbouring countries.

Bills are issued in euro and the energy price is only one part: network charges, taxes, levies and VAT together account for a large share, and network charges vary considerably between regions. The Federal Network Agency, the Bundesnetzagentur, regulates the grids. Most homes are heated with gas or oil, with heat pumps growing rapidly, so electricity use per household is moderate; rooftop solar and home batteries are widespread, and dynamic tariffs are being introduced alongside smart meters.