More than half of the energy used by households in Iceland is in the form of heat through hot water according to physical energy flow accounts which among other things show the composition of the energy consumption for households in the country.

The accounts furthermore show that electricity has held steady as approximately 12% of energy consumption since 2014. The use of biofuels has increased in recent years, from 0.15% in 2014 to 2.1% in 2020. Biofuels are primarily used as an additive to diesel fuel. The rest of energy consumption, or approximately 30%, comes from fossil fuels (gasoline, diesel and cooking gas), but has been decreasing over time and was 23.7% in 2020.

The composition of fossil fuels has changed considerably since 2014. The percentage use of diesel oil has increased while the percentage use of gasoline has steadily decreased. Gasoline comprised 20.3% of energy consumption in 2014 compared with only 12.5% in 2020. Diesel comprised 8.5% of energy consumed in 2014 but was 11.1% in 2020.

Overall, total energy consumption changed little from 2014 to 2020. It was 25000 Terajoules in 2014 and 27000 Terajoules in 2020, an average growth of approximately 1.5% per year which is comparable to the population increase.