Fifth-highest electricity costs found in Germany
Title: Higher Electricity Costs: Germany Compared to the Global Average, And How It's Changing
Germany has a reputation for high electricity prices, with households paying more compared to the global average. Just a few years ago, Germany ranked at the top five for electricity costs, but things are changing.
According to an analysis by Verivox and Global Petrol Prices, the average electricity cost for a household in Germany was approximately 38 cents per kilowatt hour (kWh) in the first quarter of 2025. This places Germany behind only a few countries, including Bermuda, Denmark, Ireland, and Belgium. However, when adjusted for purchasing power parity, Germany ranks lower, at 22nd out of 143 countries.
The high prices are primarily due to network charges, taxes, and levies, as highlighted by Verivox. The German government has pledged to lower electricity costs, aiming to permanently lower the price per kWh to five cents less than the current rate. To achieve this, measures have been taken to reduce electricity taxes, cap network charges, and cut levies.
In addition, electricity grid operators have proposed a change in electricity grid expansion that could save billions by switching from earth to overhead cables. Switching to cheaper tariffs can also help households save money. Tariffs as low as 26 cents per kWh are available.
Though Germany's electricity prices remain high, the ongoing expansion of renewable energy and policy measures like tax reductions are contributing to lower wholesale electricity prices. For instance, the average wholesale electricity price in Germany dropped by 14.9% in May 2025. Renewable energy growth is projected to lower wholesale electricity prices even further, with a potential savings of around €20 per megawatt-hour if Germany continues its current pace of renewables expansion.
Despite these efforts, challenges remain due to the structure of grid fees and some legal limitations on subsidized industrial electricity prices under European law.
All in all, Germany's electricity prices are higher than the global average, but they are on a downward trend thanks to renewables growth and policy measures. Maintaining a balance between expanding clean energy, grid infrastructure, and cost control will be crucial moving forward.
- Electricity prices in Germany
- Global electricity costs comparison
- Renewable energy expansion
- Grid fees
- Tax reductions
- Wholesale electricity prices
- Energy transition goals
- Grid infrastructure management
- Cost control strategies
- European energy policies
The community is actively discussing strategies to reduce elevated electricity prices in Germany, with a focus on renewable energy expansion, and tax reductions as major initiatives. These efforts, including grid fees management and wholesale electricity price adjustments, are aimed at aligning Germany's energy costs more closely with the global average. Taking advantage of vocational training programs, our local industries can become more energy efficient, fostering a thriving business environment and overall economic growth.
