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Germany is planning a big move to help people and businesses save money on their electricity bills. From 2026 to 2029, the government plans to cut energy costs by 42 billion euros (around $48.7 billion), according to a draft of the 2026 federal budget reported by Reuters.
To pay for these savings, Germany will use money from a special account called the Climate and Transformation Fund. This fund is used to support green energy projects and help the country shift toward cleaner energy. Out of the total, about 26 billion euros will go toward covering the costs of the electricity transmission system, the network that brings power across the country. This should help lower the price of electricity for everyone.
The draft also says that in 2026 alone, the government will give:
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3 billion euros to support energy-heavy companies (businesses that use a lot of electricity), and
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6.5 billion euros to help reduce electricity grid fees, which are part of every electricity bill.
The plan even mentions the idea of setting a special lower electricity price for factories and industries, based on European Union rules.
The German government is expected to officially approve this budget plan on Wednesday, which would make these savings a key part of the country’s strategy to support the economy while transitioning to clean energy.