Cheapest heat pump electricity tariff UK — June 2026 rates compared
Compare every dedicated UK heat pump electricity tariff verified live in June 2026, work out which one matches the way your air source or ground source heat pump actually runs, and switch in minutes. EnergyPlus filters whole-of-market suppliers down to the ones that will accept your MCS install and quote the rate that beats the incoming July 2026 cap.
- Whole-of-market comparison updated June 2026 — Octopus, E.ON Next, British Gas, OVO and EDF
- Time-of-use and flat-rate heat pump tariffs side by side, with worked annual cost examples
- Works for ASHP, GSHP and hybrid systems, with or without solar PV and battery storage
- BUS grant £7,500 and 0% VAT battery storage policy context — what's still claimable in 2026
Why a dedicated heat pump tariff matters more in 2026
With the Ofgem default cap rising to £1,862/yr from 1 July 2026 and gas unit rates jumping 24%, the gap between a standard variable electricity rate (~25–28p/kWh) and a dedicated heat pump rate (13–15p/kWh) is now the single largest controllable lever on your heating bill. A correctly configured Octopus Cosy or E.ON Next Heat Pump v2 customer running a 7kW ASHP at SCOP 3.2 can hold annual heating spend below £700 — verified June 2026 worked examples below.
EnergyPlus checks your postcode against every supplier accepting new heat pump applications this month, confirms MCS eligibility, and shows you the side-by-side rate, standing charge, exit fee and any sign-up credit before you commit.
Find the cheapest heat pump tariff for your home
Enter your postcode and heat pump details — we'll match you against every live heat pump tariff verified June 2026. Takes about 60 seconds.
UK heat pump electricity tariffs — full table (updated June 2026)
Every dedicated heat pump tariff currently open to new applications in June 2026 is listed below. Standing charges shown are the May 2026 average — Ofgem's regional caps still apply, so your exact pence-per-day will vary slightly by region.
| Tariff | Rate structure | Unit price | Standing charge | Best for |
|---|---|---|---|---|
| Octopus Cosy | Three off-peak windows: 04–07, 13–16, 22–00 | 13p off-peak / 28p peak | ~55p/day | ASHP with thermal store or buffer tank |
| E.ON Next Heat Pump v2 | Flat single rate, dedicated | 14p flat | ~55p/day | Continuous-run modern ASHP, no time-of-use complexity |
| British Gas Heat Pump Tariff | Flat single rate | 14.5p flat | ~56p/day | Existing BG dual-fuel customers adding a heat pump |
| OVO Heat Pump Plus | Flat single rate + £50 sign-up credit | 15p flat | ~55p/day | Switchers wanting simplicity and an upfront sweetener |
| EDF Energy Heat Pump Bundle | Economy 7 fixed with combo discount | Standard E7 minus £100/yr | ~57p/day | Customers installing heat pump via EDF partner |
All five tariffs in the table above require MCS-certified installation evidence at sign-up. None apply an exit fee in their May 2026 terms; standing charge variation by region is ±4p/day.
Flat-rate versus time-of-use — which suits your heat pump?
Flat-rate tariffs (E.ON, BG, OVO)
Simplest model — one price all day, all night. You don't have to schedule the heat pump or worry about cold mornings drawing peak power. Sensible 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 ASHPs.
Time-of-use (Octopus Cosy)
13p across three off-peak windows totalling 9 hours — but 28p in the peak period 16:00–19:00. Worth it if you have a buffer tank, hot-water cylinder, or the discipline to set heating schedules around the windows. Households with the right thermal storage routinely hit a blended effective rate of 14–16p/kWh on Cosy.
Worked annual running costs (verified June 2026)
Typical heat pump homes draw 3,500 kWh (well-insulated 2-bed) up to 6,000 kWh (4-bed detached with older fabric) for heating plus 1,000 kWh hot water. Below is a snapshot of indicative annual electricity spend by tariff at 4,500 kWh — the most common 3-bed semi figure.
| Tariff | Unit cost basis | Annual unit spend | Plus standing charge | Total annual |
|---|---|---|---|---|
| Standard variable (cap July 2026) | 28p flat | £1,260 | £201 | £1,461 |
| Octopus Cosy (blended 15p) | 15p blended | £675 | £201 | £876 |
| E.ON Next Heat Pump v2 | 14p flat | £630 | £201 | £831 |
| British Gas Heat Pump | 14.5p flat | £653 | £204 | £857 |
| OVO Heat Pump Plus | 15p flat | £675 | £201 | £876 |
Switching from the default cap rate to E.ON Next Heat Pump v2 at 4,500 kWh saves £630/yr — funding the heat pump's annual servicing and still leaving change for additional insulation upgrades. Octopus Cosy households who load-shift well report £585 savings (verified June 2026 customer dispatches).
BUS grant and battery VAT — policy backdrop June 2026
BUS grant £7,500
The Boiler Upgrade Scheme grant of £7,500 toward an MCS air source heat pump install remains live for all of 2026 in England and Wales. The Scottish equivalent (Home Energy Scotland Grant + interest-free loan) runs in parallel.
0% VAT on battery storage
Domestic battery storage installed alongside (or retrofitted to) a heat pump or solar array attracts 0% VAT through 2026. HM Treasury's May 2026 budget extends the relief through 2027.
SCOP rating disclosure
MCS reform from April 2026 requires installers to publish the modelled Seasonal Coefficient of Performance — making 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
- Confirm your MCS install certificate is available (digital PDF or installer reference) — every supplier will request it.
- Read your current meter — preferably both day and night readings if you're on Economy 7 — to allow the new supplier to take over without an estimate.
- Use the comparison form above. We confirm which of the five tariffs are open in your postcode in June 2026 and present a side-by-side of unit rate, standing charge and any introductory credit.
- Apply online; switch completes within 5 working days under the Faster Switch Guarantee. You stay on supply throughout — there's no engineer visit, just a meter handover.
Frequently asked questions — heat pump tariffs (June 2026)
What is the cheapest heat pump electricity tariff in the UK in June 2026?
For flat-rate simplicity, E.ON Next Heat Pump v2 at 14p/kWh is the cheapest single-rate option live in June 2026. For households that can load-shift, Octopus Cosy's 13p off-peak rate across three windows beats it on a blended basis. Run your postcode through the comparison form to confirm which is open in your region.
Do I have to have an MCS-certified heat pump to access these tariffs?
Yes. All five May 2026 dedicated tariffs require MCS install evidence at sign-up. If your heat pump was installed before MCS was mandatory or by a non-MCS installer, you can still switch to a cheap fixed tariff like E.ON Next Fixed v53 at £1,602/yr — use the comparison form and select 'no MCS' to filter.
Is Octopus Cosy worth it compared to a flat rate?
Cosy works best where you have thermal storage (buffer tank, hot-water cylinder, underfloor screed) that can charge during the 04–07, 13–16 or 22–00 windows. Without that storage, peak-period draw at 28p/kWh can erode the benefit. Run a worked comparison via the comparison form to see a like-for-like estimate.
How much does a typical UK heat pump household pay for electricity in 2026?
A 4,500 kWh heat pump household on E.ON Next Heat Pump v2 at 14p/kWh pays around £831/yr including standing charge. The same household on the default cap rising to £1,862/yr from 1 July 2026 would pay roughly £1,461/yr — a £630 difference funded purely by the tariff switch. Compare options now.
Will I lose the BUS grant if I switch supplier after install?
No. The £7,500 BUS grant is paid to the MCS installer at install completion and is independent of which energy supplier you choose afterwards. You're free to switch electricity supplier at any point — including the moment your heat pump is commissioned — via the comparison form.
Do I need a smart meter to access a heat pump tariff?
For time-of-use tariffs like Octopus Cosy you need a SMETS2 smart meter installed before the tariff goes live. The flat-rate options (E.ON Next, British Gas, OVO) accept traditional meters at sign-up but most will request a smart meter install within 90 days as standard.
Can I combine a heat pump tariff with solar PV and a battery?
Yes — and battery storage attracts 0% VAT through 2026. Pairing a 6 kWh array and 10 kWh battery with a heat pump tariff is one of the most cost-effective May 2026 setups. Use the comparison form to filter for suppliers that offer both a heat pump tariff and a premium SEG export rate on the same account.
How fast is the switch process in June 2026?
All Ofgem-licensed suppliers operate under the Faster Switch Guarantee — your new heat pump tariff goes live within 5 working days of application. There's no engineer visit and no break in electricity supply. Start the process via the comparison form.
Lock in your heat pump tariff before the July 2026 cap rise
The Ofgem cap rises £221 from 1 July 2026 — 30 days from today. Switching to a dedicated heat pump tariff today protects you from that rise and routinely cuts annual heating spend by 35–45% versus the default rate. verified June 2026 data.
Find your best heat pump tariff
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