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National Energy Authority operates under the authority of the Ministry of the Environment, Energy, and Climate in accordance with laws and regulations pertaining to the National Energy Authority

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Subsidies for home heating

Users who do not have the option to utilize geothermal energy for heating almost their homes. Almost all heat with electricity. Electric heating is considerably more expensive than heating from geothermal sources. In order to equalize living conditions, the government subsidizes the distribution and transmission costs of electricity for heating households.

The subsidies for heating costs provided by the government are significant, as the government fully subsidizes the distribution and transmission costs of electricity for heating homes up to a maximum usage of 40,000 kWh/year.

According to the laws on subsidies for heating costs no. 78/2002 and the regulation on the implementation of the laws on subsidies for heating costs no. 698/2013, all users who wish to enjoy the subsidies must apply specifically to the National Energy Authority (Orkustofnun), which oversees the implementation of these laws.

Owners/tenants of residential properties that do not have the option for full geothermal heating can apply for the heating cost subsidy from the National Energy Authority, which assesses whether the conditions for the subsidies, as outlined in Article 4, are met. The following methods can be used to apply for the subsidy:

  • Fill out an application in the online service portal and submit it to the National Energy Authority.
  • Fill out a paper application form and send it by mail to the Akureyri office of the National Energy Authority at Rangárvellir, 603 Akureyri. The National Energy Authority will send the paper application form to those who request it.

The National Energy Authority provides further information about the subsidy laws and assists property owners with the application process as needed. You can call them at +354 569 6000 or send an email to nidurgreidslur@os.is.