Is there help with energy costs in Iceland?
Many countries have a social tariff, a discount or an allowance for people on a low income, and free advice on saving energy.
📜 The rules in Iceland
Help if money is tight
No income-based social tariff. Owners or tenants without adequate geothermal heating can apply to Umhverfis- og orkustofnun for a state subsidy on electric heating, covering distribution and transmission costs up to 40,000 kWh a year.
Free energy advice
Orkusetur, part of the state energy agency, offers free information and calculators on saving energy, heating, heat pumps and comparing electricity prices.
Regulated price
There is no regulated or capped retail electricity price. Suppliers set their own prices; compare them on Orkusetur's price comparison.
🪜 Step by step
- See what existsThe schemes in Iceland are listed below, with who qualifies.
- Check if it is automaticSome discounts are applied automatically. For others you have to apply.
- Get free adviceFree energy or debt advice can help you lower your bills and deal with arrears.
- Talk to your supplierAsk about a cheaper tariff or a payment plan, and register as a vulnerable customer if that applies.
📇 Who to contact
❓ Questions
Do I have to apply?
It depends on the scheme. The details for Iceland are on this page.
Who gets the discount if I rent?
Usually the person named on the energy contract.
Is there help for heating oil or wood?
Some countries have separate heating allowances. Ask the social services of your municipality.
📎 Sources
🧭 Is this still correct?
We check this information carefully, but phone numbers, websites and rules change — and sometimes we get something wrong. Spotted a mistake or a change? Let us know below.
⚠️ Readers report that something here may have changed — we are checking it.
✅ Thank you — this keeps the page up to date for everyone.