The role of iron for the energy balance in the extended atmospheres and cir
cumstellar envelopes of cool stars is explored. Based on large non-LTE mode
l atoms for Fe I and FeII, we study the influence of fine-structure, forbid
den, permitted and bound-free transitions on the radiative heating and cool
ing of the gas under various temperature, density and radiation field condi
tions. The results are compared to those obtained in LTE and to those calcu
lated when ignoring optical depth effects in the lines. The number of level
s in the model atoms necessary to achieve convergence of the results is dis
cussed.