Electricity in Germany: stop paying the default tariff

Grundversorger vs market tariffs: switching saves €300-600/year, bonuses for new customers, Ostrom's English app, kWh prices decoded and switch steps.

Last updated: July 13, 2026

How do you get cheap electricity in Germany?

When you move in you are automatically supplied by the local Grundversorger at its default tariff, typically the most expensive option. Switching online to a market tariff takes 10 minutes, is handled entirely by the new provider, and saves a typical household €300-600 per year - with English-first providers like Ostrom making it expat-easy.

What this guide covers

How German electricity works (60 seconds)Your realistic options The bonus-vs-flexibility honest math Switching, step-by-step Gas and heating

How German electricity works (60 seconds)

You always have power: moving in puts you on the local default supplier (Grundversorgung) automatically. That safety net bills ⚠️ VERIFY current ~40+ cents/kWh averages vs market tariffs in the low 30s or below. You pay a monthly prepayment (Abschlag); the yearly statement (Jahresabrechnung) settles actual use - budget for a possible Nachzahlung if your Abschlag was set low.

Your realistic options

Type	What	For whom
Grundversorger default	Automatic, expensive, 2-week cancellation anytime	Nobody, beyond your first weeks
12-24 month fixed contracts	Price guarantee + new-customer bonuses (€50-150 typical ⚠️)	Bonus-hoppers who calendar the renewal - year-1 math often unbeatable
Monthly-flexible green (Ostrom)	English app, one fair tariff, cancel monthly, no bonus games	Expats who want zero German-contract-trap risk - our default recommendation
Dynamic tariffs	Hourly market prices, needs smart meter	EV/heat-pump optimizers only

The bonus-vs-flexibility honest math

German providers weaponize year-1 bonuses and then jack year-2 prices - the national sport is switching every 12 months. If you'll genuinely re-switch: comparison-site route. If you won't (most people), the flexible English option costs a few euros more and never traps you - and when you leave Germany, monthly cancellation beats arguing Sonderkündigung from abroad.

Switching, step-by-step

Meter number (Zählernummer, on the meter/last bill) + annual kWh (bill, or estimate: 1p flat ~1,500 kWh, 2p ~2,500, family ~3,500-4,000)
Compare
Sign up online - the NEW provider cancels the old contract and manages the switchover; supply never interrupts
Submit a meter reading on switch day (photo), adjust the Abschlag realistically

Gas and heating

Rented flats: heating usually runs through Nebenkosten (landlord's contract) - you only choose electricity. Own gas contract: same switching logic and the same comparison tools.

Frequently asked questions

I just moved in and did nothing. Am I illegal?

No - Grundversorgung covers you automatically. You're just overpaying; the letter introducing "your" supplier is your cue to switch.

Deposit or Schufa check?

Market providers may Schufa-check; new arrivals sail through with the English-first/flexible options.

What's a fair 2026 price?

⚠️ insert current benchmark at build (direction: low-30s cents/kWh all-in is competitive; anything near 40 is default-tariff robbery).

Nachzahlung shock of €400 - why?

Abschlag was set too low for your real usage. Pay, then raise the monthly Abschlag and check the meter quarterly.

100% green real or greenwash?

Certificates vary; providers like Ostrom buy certified green supply. For deeper impact look for Ökostrom labels (ok-power, Grüner Strom).

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