The war in Iran is sending shockwaves through global energy markets, and Germany is feeling the impact. Fuel and gas prices are rising again, bringing back memories of the energy crisis that followed Russia's invasion of Ukraine. Against this backdrop, heat pumps — long promoted as a greener and potentially cheaper alternative to gas heating — are once again in the spotlight. For expats renting apartments or living in houses in Germany, understanding what is happening in the energy market and what it could mean for your heating costs is increasingly relevant.
The conflict in Iran has disrupted global fossil fuel supply chains and created uncertainty in energy markets. Germany, which has worked hard to diversify its energy sources since 2022, is still exposed to global gas price fluctuations. While Germany no longer depends on Russian pipeline gas, it imports liquefied natural gas (LNG) from global markets — and those markets are reacting to the Iran situation with rising prices.
For households, this means higher gas bills if you heat your home with a gas boiler, which remains the most common heating system in German apartments. Energy providers may pass on cost increases in the months ahead, though the German government has consumer protection mechanisms in place that limit how quickly and steeply prices can change.
Heat pumps work by extracting warmth from the outside air or ground and transferring it indoors — a process that is significantly more energy-efficient than burning gas. They have been central to Germany's long-term climate and heating strategy, but uptake has been slower than the government hoped, partly because of high upfront installation costs and uncertainty about subsidies.
The current rise in gas prices could change the calculation. When gas becomes more expensive, the relative cost-effectiveness of a heat pump improves. Industry groups are watching closely to see whether this will trigger a new wave of installations, particularly in single-family homes.
For renters — the majority of expats in Germany — the decision to install a heat pump lies with the landlord (Vermieter), not the tenant. However, if a landlord installs one, it could eventually be reflected in the heating costs (Heizkosten) included in your rent or utility bills, ideally in a positive way if electricity prices remain stable.
If you live in a gas-heated apartment, your ancillary costs (Nebenkosten) — which include heating — may rise in your next annual settlement (Betriebskostenabrechnung). It is worth checking your current advance payment (Abschlagszahlung) for heating and asking your landlord or property management whether adjustments are expected.
If you are in the process of renting a new place, pay attention to the energy performance certificate (Energieausweis) of the property. Buildings with higher energy efficiency ratings will be less exposed to gas price volatility.
For those who own property in Germany, government subsidies for heat pump installation are available through KfW (Germany's state development bank) and the BAFA agency. These programmes have changed significantly over the past two years, so always check the current conditions before making any investment decision.
Your landlord cannot unilaterally change your rent because of energy prices, but the Heizkosten component of your Nebenkosten can increase if actual heating costs go up. Your annual Betriebskostenabrechnung will reflect real costs. If you believe the settlement is incorrect, you have the right to review the underlying bills — and tenants' associations (Mieterverein) can help you check the figures.
Switching to a renewable electricity tariff does not directly lower your bill, but it can reduce your carbon footprint. For households with heat pumps, the source of electricity matters more — a heat pump running on green electricity is genuinely low-emission. Use comparison portals like Verivox or Check24 to compare tariffs available in your area.
Rising gas prices caused by the Iran war are a real and immediate concern for households in Germany. Whether you rent or own, it is worth reviewing your energy situation now rather than waiting for a higher bill to arrive.
Source: DW English
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