Germany heating costs projected to rise for fossil fuel users in 2026

The 2026 heating report (Heizspiegel) indicates rising energy costs for many German households, particularly those relying on fossil fuels. According to data from co2online, the German Tenants' Association, and the Homeowner Protection Association, heating oil and wood pellets are expected to see significant price increases. Specifically, heating oil costs are projected to rise by 24 percent, while wood pellet costs could increase by 17 percent.

In contrast, natural gas heating may see a slight decrease of approximately 4 percent due to lower procurement costs and the removal of the gas storage levy, though experts warn that wholesale price fluctuations could reverse this trend later in 2026 or 2027. Other heating methods, such as district heating and heat pumps, are expected to see only modest increases in the single digits.

To mitigate these rising costs, experts recommend several energy-saving measures. Reducing room temperatures by just one degree can lower consumption by about 6 percent. Additional tips include automating heating systems with programmable thermostats and ensuring proper airflow around radiators by keeping furniture at least 30 centimeters away.