Cheapest heat pump electricity tariff UK – September 2026 rates compared
The Ofgem price cap is £1,723 a year for a typical dual-fuel home. The capped Standard Variable electricity rate is 26.32p/kWh, and a dedicated heat-pump tariff with cheap heating windows is the single biggest lever a heat-pump household has to cut running costs. EnergyPlus compares every UK supplier accepting new heat-pump applications, checks their eligibility terms, and shows the rate that beats the current cap.
Weighing a heat pump against simply renewing your gas boiler? Compare gas boiler replacement costs first — the up-front gap between the two matters as much as the unit rate you pay afterwards.
- Whole-of-market comparison verified September 2026 – Octopus, E.ON Next, British Gas and EDF
- Peak-priced and no-peak heat-pump tariffs side by side, with worked annual-cost examples
- Works for air source (ASHP), ground source (GSHP) and hybrid systems, with or without solar PV and a battery
- BUS grant £7,500 and 0% VAT battery-storage policy – what is still claimable in 2026
Quick answer: what is the cheapest heat pump electricity tariff in the UK?
Dedicated heat-pump tariffs are priced well below the Standard Variable rate. E.ON’s heat-pump tariff, Next Pumped, is time-of-use — its cheapest rate runs 10pm–6am — and E.ON prices it per region, so you need a quote for your exact rate. If your system has thermal storage and you can load-shift, Octopus Cosy prices its three off-peak windows about 51% below your regional day rate, which can work out cheaper still on a blended basis. In their cheap windows all of these sit well below the 26.32p/kWh capped Standard Variable rate – British Gas Heat Power halves the unit rate in its windows and EDF Heat Pump Tracker takes 10p/kWh off.
A 4,500 kWh heat-pump home pays roughly £1,384 a year at the capped Standard Variable rate (July–September and October–December cap rates alike), and a dedicated heat-pump tariff typically cuts that materially — the exact figure depends on the tariff, your region and how much heating you can shift into the cheap window. Heat-pump tariffs require a heat pump (or electric boiler) and a working smart meter; enter your postcode below to see which are open in your region.
Why a dedicated heat-pump tariff matters under the price cap
With the Ofgem default cap at £1,723/yr and the capped Standard Variable electricity rate at 26.32p/kWh, the gap between that rate and the cheap windows on a dedicated heat-pump tariff is the single largest controllable lever on a heat-pump heating bill. How much you save depends on how much heating and hot water you can run in those windows and on your heat pump’s seasonal performance factor (SCOP) – worked examples are below, verified September 2026.
Crucially, the price cap only sets Standard Variable prices; households on fixed deals – around 35% of homes, according to Ofgem – keep their rates until the deal ends. EnergyPlus checks your postcode against every supplier accepting new heat-pump applications this month, confirms eligibility, and shows the unit rate, standing charge, exit fee and any sign-up credit side by side before you commit.
Find the cheapest heat-pump tariff for your home
Enter your postcode and heat-pump details and we will match you against every live heat-pump tariff verified September 2026. Takes about 60 seconds.
UK heat-pump electricity tariffs – full table (verified September 2026)
The main dedicated heat-pump tariffs open to new applications are listed below. Suppliers price them by region, so the table shows how each tariff is priced rather than a single national figure. For comparison, the capped Standard Variable electricity standing charge averages 54.83p/day.
| Tariff | Rate structure | Unit price | Standing charge | Best for |
|---|---|---|---|---|
| Octopus Cosy | Three Cosy windows totalling eight hours: 04–07, 13–16, 22–00 (peak 16–19); fixed and flexible versions | 51% below your regional Day rate in the Cosy windows; 50% above it at peak | Regional | ASHP with a buffer tank or thermal store to soak up off-peak windows |
| E.ON Next Pumped | Time-of-use: super off-peak 10pm–6am, off-peak 7–10pm & 6am–4pm, peak 4–7pm; 12-month fix | Quote only (varies by region) | Quote only | Heat pump or electric boiler homes on monthly Direct Debit whose smart meter sends half-hourly data |
| British Gas Heat Power | Time-of-use: 50% off the unit rate, 1pm–4pm & 12am–7am, paid as a weekly credit; no peak rate | Quote only (varies by region) | Quote only | British Gas electricity customers, new or existing, with a heat pump or electric heating (not prepayment) |
| EDF Heat Pump Tracker | Tracker: 10p/kWh off EDF’s Standard rate 04–07 & 13–16; no peak rate; reviewed every three months | Regional – 10p/kWh below EDF’s Standard rate in the windows | Regional | Households that can shift heating and hot water into the discount windows |
Eligibility differs by supplier – all four need a heat pump (or, depending on the tariff, electric heating or an electric boiler) and a smart meter: Octopus Cosy needs a SMETS2 or Secure SMETS1 meter, EDF Heat Pump Tracker a half-hourly smart meter, and E.ON Next Pumped half-hourly meter data plus monthly Direct Debit. Octopus Cosy, E.ON Next Pumped and EDF Heat Pump Tracker have no exit fees in their September 2026 terms; check British Gas’s terms in your quote. Note: OVO Heat Pump Plus closed to new customers on 1 February 2026 and is no longer a switching option, so it is worth comparing the four tariffs above.
No-peak versus peak-priced tariffs – which suits your heat pump?
Discount windows, no peak (British Gas Heat Power, EDF Heat Pump Tracker)
The simplest model – you pay your normal unit rate most of the day and get a discount in set windows (British Gas: 50% off 1–4pm and midnight–7am; EDF: 10p/kWh off 4–7am and 1–4pm), with no peak surcharge. You do not have to schedule the heat pump or worry about cold evenings drawing peak-priced power. This is the sensible choice if your installer set the system to run continuously at low flow temperatures (weather-compensated modulation), which is the recommended operating mode for most modern modulating air source heat pumps.
Cheap windows with a peak (Octopus Cosy, E.ON Next Pumped)
Cosy prices three windows totalling eight hours (04:00–07:00, 13:00–16:00 and 22:00–00:00) 51% below your regional Day rate – but its 16:00–19:00 peak is priced 50% above it. E.ON Next Pumped works on the same principle, with a super off-peak band from 10pm to 6am and a 4–7pm peak. Worth it if you have a buffer tank, hot-water cylinder, or the discipline to schedule heating around the windows – the more of your use you move into the cheap bands and out of the peak, the lower your average rate.
Worked annual running costs (verified September 2026)
Typical heat-pump homes draw 3,500 kWh (a well-insulated 2-bed) up to 6,000 kWh (a 4-bed detached with older fabric) for heating plus around 1,000 kWh for hot water. The snapshot below shows indicative annual electricity spend by tariff at 4,500 kWh – the most common 3-bed semi figure – using Ofgem’s capped Standard Variable rates (26.11p/kWh and 57.19p/day to 30 September; 26.32p/kWh and 54.83p/day from 1 October) and, as a time-of-use example, EDF Heat Pump Tracker’s published East Midlands rates checked on 15 September 2026.
| Tariff | Unit cost basis | Annual unit spend | Plus standing charge | Total annual |
|---|---|---|---|---|
| Standard Variable (cap) | 26.11p flat (26.32p from 1 Oct) | £1,175 (£1,184 from 1 Oct) | £209 (£200 from 1 Oct) | £1,384 (£1,385 from 1 Oct) |
| EDF Heat Pump Tracker, East Midlands (30% of use in the discount windows) | 15.36p in the windows, 25.36p otherwise | £1,006 | £188 | £1,194 |
In that example the tracker costs about £190 a year less than the capped Standard Variable rate. Suppliers’ own estimates use different baselines: E.ON says Next Pumped could save £67 a year, Octopus puts Cosy at around £82 a year below its own fixed tariff for a home using 5,877 kWh, and EDF quotes savings from £146 a year at 2,500 kWh. Your figure depends on your seasonal performance factor (SCOP), how well your home holds heat, and how much you can shift into off-peak windows.
BUS grant and battery VAT – policy backdrop September 2026
BUS grant £7,500
The Boiler Upgrade Scheme grant of £7,500 toward an MCS-certified air source or ground source heat pump install is available in England and Wales, with an extra £1,500 until March 2027 for homes replacing oil or LPG heating off the gas grid. The Scottish equivalent (Home Energy Scotland grant plus an interest-free loan) runs in parallel. The grant is paid to your installer and does not tie you to any energy supplier.
0% VAT on battery storage
Domestic battery storage installed alongside – or retrofitted to – a heat pump or solar array attracts 0% VAT until 31 March 2027, so pairing storage with a heat-pump tariff stays tax-efficient.
SCOP disclosure
Ask your installer for the system’s estimated Seasonal Coefficient of Performance (SCOP) – it makes a like-for-like running-cost comparison far more accurate when paired with the tariff table above.
Switching to a heat-pump tariff – the four steps
- Check the tariff’s eligibility terms – you will need a heat pump (or qualifying electric heating) and a smart meter, and it helps to have your MCS certificate or installer reference to hand.
- Read your meter – ideally both day and night readings if you are on Economy 7 – so the new supplier takes over without an estimate. If a price-cap change is days away, a reading on the last day of the old cap makes sure its rates cover usage up to that date.
- Use the comparison form above. We confirm which tariffs are open in your postcode this month and present a side-by-side of unit rate, standing charge and any introductory credit.
- Apply online; most switches complete within five working days. You stay on supply throughout – there is no engineer visit, just a meter handover.
Frequently asked questions – heat-pump tariffs (September 2026)
What is the cheapest heat pump electricity tariff in the UK right now?
E.ON’s heat-pump tariff, Next Pumped, is time-of-use rather than a single flat rate: its cheapest band runs 10pm–6am, and E.ON prices it by region, so you need a quote for your exact rate. For households that can load-shift, Octopus Cosy’s three discounted windows (about 51% below your regional day rate) can beat it on a blended basis. In their cheap windows all sit well below the 26.32p/kWh capped Standard Variable rate. Run your postcode through the comparison form to confirm which is open in your region.
Do I need an MCS-certified heat pump to access these tariffs?
Not usually. The four tariffs above ask for a heat pump (or qualifying electric heating) and a smart meter in their eligibility terms rather than MCS paperwork, but check the supplier's own terms before you apply. If your system does not qualify for a heat-pump tariff, you can still compare fixed tariffs against the price cap – use the comparison form to see what is available in your postcode.
Why do heat pump households need a smart or time-of-use tariff?
A heat pump turns electricity into roughly three units of heat, so almost all of a heat-pump home’s bill is electricity. Paying the 26.32p/kWh Standard Variable rate on that volume is expensive; a heat-pump tariff that lets you heat during cheap windows – half price with British Gas Heat Power, 51% below the Day rate with Octopus Cosy – cuts the cost of every kWh you move into them. That is why a heat-pump-specific tariff matters far more than it does for a gas-heated home.
Does the price cap affect my heat pump tariff?
Only the Standard Variable (price-capped) tariff is set by the cap – currently a 26.32p/kWh electricity unit rate and a 54.83p/day standing charge. E.ON Next Pumped and British Gas Heat Power are fixed tariffs and Octopus Cosy has a fixed version, so those rates hold until the deal ends; flexible Cosy and EDF Heat Pump Tracker are variable and can change when the supplier reviews prices (EDF every three months). Around 35% of households are on fixed deals, according to Ofgem.
Should I fix under the current price cap?
If you are on the Standard Variable rate and your heat pump runs through the day, a dedicated heat-pump tariff or a cheap fixed deal takes you off the capped rate, which Ofgem resets every three months (the typical cap is £1,723 a year). Take a meter reading on the day you switch, then apply – most switches complete within five working days.
Is Octopus Cosy worth it compared with a flat rate?
Cosy works best where you have thermal storage (a buffer tank, hot-water cylinder or underfloor screed) that can charge during the 04–07, 13–16 or 22–00 windows. Without that storage, heating during the 16:00–19:00 peak – priced 50% above your regional Day rate – can erode the benefit. Run a worked comparison via the comparison form to see a like-for-like estimate.
Will I lose the BUS grant if I switch supplier after install?
No. The £7,500 Boiler Upgrade Scheme grant is paid to the MCS installer when the install completes and is independent of which energy supplier you choose afterwards. You are free to switch electricity supplier at any point – including the moment your heat pump is commissioned.
What happened to OVO Heat Pump Plus?
OVO Heat Pump Plus closed to new customers on 1 February 2026, so it is worth comparing the four open tariffs above – Octopus Cosy, E.ON Next, British Gas and EDF – via the comparison form.
Written by: EnergyPlus Editorial Team. Tariff terms verified 15 September 2026 against Octopus, E.ON Next, British Gas and EDF’s own tariff pages and Ofgem’s price-cap figures.
Worked examples use Ofgem’s capped Standard Variable electricity rates for July–September and October–December 2026 and EDF’s published East Midlands Heat Pump Tracker rates; your figures depend on your region, usage and seasonal performance factor. We compare the whole of the market and do not charge you to switch.
Lock in your heat-pump tariff under the current price cap
The Ofgem cap is £1,723 a year for a typical dual-fuel home. The capped Standard Variable electricity rate is 26.32p/kWh, and a dedicated heat-pump tariff lets you run heating and hot water in cheaper windows instead of paying that rate around the clock. Verified September 2026.
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