Electricity Prices 2027 at a Glance
As of May 2026, there is no official electricity price forecast for 2027 in ct/kWh. Neither the Bundesnetzagentur, BDEW nor the Federal Government has published a concrete point estimate for household electricity in 2027. What is reliable: three structural drivers and three structural brakes.
- →Drivers: Expiration of the KTF subsidy for transmission network charges at end 2026, start of EU emissions trading system ETS 2 from 2027, ongoing grid expansion.
- ↓Brakes: Growing renewable generation (merit-order effect), §14a EnWG discount for heat pumps and charging boxes, mandatory dynamic tariffs since 2025.
- iCurrent level: Model tariff January 2026 approximately 37.2 ct/kWh according to BDEW. Gap between switching tariff and standard supply remains significant.
What we can reliably say about 2027
Whoever searches for an electricity price forecast for 2027 in May 2026 finds mainly two things: newspaper headlines with point estimates and press releases from comparison portals. Both have a catch. The official bodies that normally provide reliable figures are holding back.
The Bundesnetzagentur publishes its monitoring report retrospectively. The most recent report from November 2025 shows an average price of 40.1 ct/kWh for household customers for April 2025, roughly four percent below the previous year. Its own forecast for 2027 is absent. The BDEW also provides only a status report with its electricity price analysis for January 2026 (approximately 37.2 ct/kWh in the model tariff), not a forecast.
We therefore dispense with an invented point forecast in this guide. Instead, we classify the six factors that will demonstrably apply from 2027. From this, you can form your own picture of whether a tariff change, an investment in self-consumption, or a wait-and-see approach makes sense for you.
What components make up your electricity price in 2026?
Before we examine 2027, let's look at today's composition. In the BDEW model case (annual consumption 2,500 to 5,000 kWh, January 2026), the price breaks down as follows:
| Component | Share | Source |
|---|---|---|
| Supply & Distribution | 15.38 ct/kWh | BDEW |
| Network charges (total) | 9.26 ct/kWh | BDEW |
| Electricity tax (§3 StromStG) | 2.05 ct/kWh | StromStG |
| KWKG levy (combined heat and power) | 0.45 ct/kWh | BDEW |
| Offshore network levy | 0.94 ct/kWh | BDEW |
| §19-StromNEV levy (grid relief) | 1.56 ct/kWh | BDEW |
| Concession fee | 1.67 ct/kWh | BDEW |
| Value-added tax (19%) | 5.95 ct/kWh | rounded |
Note: The renewable energy levy (EEG-Umlage) has been 0 ct/kWh since 1 July 2022. Support for renewable energy is now financed from the Climate and Transformation Fund (KTF).
Six factors that apply in 2027
1. KTF subsidy to network charges ends 2026
The Federal Government has committed 6.5 billion euros from the Climate and Transformation Fund (KTF) to the four transmission system operators for 2026. This subsidy dampens network charges and thus electricity costs for households. Continuation beyond 2026 has not been decided. According to the Federal Government, it is reviewing "targeted relief measures beyond 2026".
Source: Federal Government, Press Release October 2025 · Effect: price-increasing if no follow-up regulation
2. EU Emissions Trading System ETS 2 begins 2027
From 2027, the EU-wide emissions trading system ETS 2 replaces the German national emissions trading system for transport and heating. Throughout 2026, a final national auction phase applies with a price corridor of 55 to 65 euros per tonne CO₂. In ETS 2, the price is then determined by the market. The impact on electricity prices is mainly indirect, because fossil generation in wholesale markets becomes more expensive (merit-order effect).
Source: Federal Government, DEHSt · Effect: tends to increase prices with low renewable generation
3. Smart meter mandate continues to roll out
In March 2026, the Bundesnetzagentur (Federal Network Agency — BNetzA) initiated enforcement proceedings against metering point operators who failed to reach the 20% quota for intelligent metering systems by the end of 2025. On average, only 23.3% of mandatory consumption points were equipped by end of 2025. By 2032, 90% of mandatory connections should have an intelligent metering system.
Source: BNetzA, Press Release 27 March 2026 · Effect: cost-neutral to slightly price-relevant via metering charge
4. Dynamic tariffs are mandatory for all suppliers
Since 1 January 2025, all electricity suppliers in Germany must offer a dynamic electricity tariff under §41a EnWG (Energy Industry Act). The obligation applies regardless of the number of customers. The prerequisite on the consumer side is an intelligent metering system. Those who consume flexibly can benefit from further market penetration from 2027 onwards.
Source: §41a EnWG, BNetzA · Effect: individually price-reducing with flexible consumption
5. §14a EnWG: controllable appliances since 2024
Since 1 January 2024, grid operators are permitted to temporarily reduce the power draw of heat pumps, charging boxes, air conditioning systems and night storage heaters to a guaranteed minimum output of 4.2 kW to prevent network overload. In return, households receive a reduced network charge. Existing installations can remain on the old arrangement until 31 December 2028.
Source: BNetzA, Decision BK6-22-300 · Effect: price-reducing for affected households
6. Electricity price brake does not continue
The electricity price brake applied from January 2023 to 31 December 2023. It has expired and there is no follow-up regulation for private households. Whoever wishes to reduce electricity costs in 2027 must rely on tariff changes and self-consumption solutions.
Source: Federal Government · Effect: status quo since 2024
What you can do in 2026 before 2027 begins
No one can forecast electricity prices for 2027 precisely. However, you can influence your own electricity bill, largely independent of which direction the market moves.
- Check tariffs before price guarantee expires. Many contracts with long price guarantees were concluded in 2023 or 2024. If the guarantee runs out in 2026 or 2027, comparison with current switching tariffs is worthwhile. You can use our electricity tariff comparison for this.
- Request a smart meter if a dynamic tariff is an option. Without an intelligent metering system, the dynamic tariff remains theoretical. With a smart meter, time-variable cheap hours become usable. Learn more in our dynamic tariff guide.
- Use §14a EnWG if you have a heat pump or charging box. Controllable appliances receive a reduced network charge. Our heat pump electricity comparison shows details and cost calculation.
- Expand self-consumption. Self-generated solar electricity contains neither network charges nor taxes. A PV system or balcony power plant reduces dependence on market prices. The investment can often be financed via a modernization loan. A loan comparison shows current terms.
- Leave standard supply tariffs. Standard supply tariffs in 2026 remain noticeably higher than switching tariffs. Those still in standard supply typically overpay by several hundred euros per year.
Three common misunderstandings about the 2027 forecast
„Prices automatically fall in 2027 because of renewables."
More renewables do depress wholesale prices (merit-order effect). However, end-customer prices contain roughly one-third network charges and levies that can rise independently. The net result is open.
„ETS 2 directly increases electricity prices."
ETS 2 affects transport and heating from 2027, not directly electricity trading. The effect on electricity prices is indirect, through expensive fossil backup power plants and coupled markets. The EU-ETS 1 for electricity generation continues separately.
„Whoever has a smart meter automatically saves."
The smart meter is the prerequisite for dynamic tariffs, not the savings itself. Without active shifting of consumption to cheap hours, the benefit remains small.
Frequently asked questions about the 2027 electricity price forecast
How will electricity prices develop in 2027 in Germany?▼
A reliable point forecast in ct/kWh for 2027 is not possible. There is currently no official forecast from BNetzA, BDEW or the Federal Government that names a concrete price. What is certain: the KTF subsidy for transmission network charges is limited until the end of 2026; from 2027, the EU emissions trading system ETS 2 begins for transport and heating; and the smart meter mandate continues.
Will electricity prices rise or fall in 2027?▼
Both movements are possible. Price-increasing factors: the end of the KTF network charge subsidy, the start of ETS 2, and further grid expansion. Price-dampening factors: increasing renewable generation (merit-order effect), §14a EnWG discounts for controllable appliances, and more competition through dynamic tariffs.
What does a kilowatt-hour of electricity cost in 2026 in Germany?▼
According to the BDEW electricity price analysis for January 2026, a model household with an annual consumption of 2,500 to 5,000 kWh pays an average of around 37.2 ct/kWh for electricity. The Bundesnetzagentur reported an average value of 40.1 ct/kWh for April 2025.
What changes with the CO₂ price from 2027?▼
Until the end of 2026, the national auction phase runs in the German fuel emissions trading system with a price corridor of 55 to 65 euros per tonne CO₂. From 2027, the EU-wide emissions trading system ETS 2 replaces the national system for transport and heating. The price is then determined by the market.
What benefits does a dynamic electricity tariff bring in 2027?▼
A dynamic electricity tariff passes the exchange price to you on an hourly basis. If you are flexible in timing and can shift your consumption to cheaper hours — for example when charging an electric vehicle or operating a heat pump — you can save money. The prerequisite is an intelligent metering system (smart meter). Since January 2025, every electricity supplier must offer a dynamic tariff (§41a EnWG).
Is photovoltaics worthwhile in view of 2027?▼
A private PV system reduces electricity bills permanently because self-generated solar electricity contains no network charges or taxes. With the Solar Package I (in force since May 2024), plug-in solar devices (balcony power plants) up to 800 VA inverter capacity are permitted. For larger systems, comparing financing options is worthwhile.
Can I still switch electricity suppliers before 2027?▼
Yes. Most tariffs have a minimum contract term of 12 months and a notice period of one month at contract end. In the standard supply tariff, a two-week notice period applies. Additionally, you have a special right to terminate before any price increase. A tariff comparison before year-end is one of the most effective savings measures.
Sources and Status
- BDEW Electricity Price Analysis January 2026 (Bundesverband der Energie- und Wasserwirtschaft)
- Bundesnetzagentur, Monitoring Report 2025, Press Release 26 November 2025
- Bundesnetzagentur, Press Release „Enforcement Proceedings Smart Meters" 27 March 2026
- Federal Government, Announcement „Lower Network Charges" regarding KTF subsidy 2026
- Federal Government, Announcement on CO₂ price and transition to ETS 2
- DEHSt (Deutsche Emissionshandelsstelle), FAQ on national emissions trading from 2026
- BNetzA, Decision BK6-22-300 on §14a EnWG (controllable appliances)
- §3 StromStG, §41a EnWG, Solar Package I (gesetze-im-internet.de)
Status: May 2026. This guide serves for general information and does not replace individual energy consultation. Information without warranty.
Compare current electricity tariffs for 2026 and 2027
Whoever prepares the tariff switch now goes into 2027 with peace of mind. Compare current offers independently of your current provider.
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