Cheapest electricity tariff for home heating in the UK
Find the cheapest electricity setup for electric heating (heat pump, storage heaters or panel heaters) based on your meter, usage pattern and postcode — with clear caveats and UK-specific tips.
- Compare tariffs that can reduce your heating costs by shifting usage to cheaper hours (where suitable)
- Understand which options work with heat pumps vs storage heaters vs EV/solar households
- See realistic examples with numbers and the limitations behind them
Estimates only. The “cheapest” tariff depends on your meter type, usage pattern, payment method and regional rates. Terms, eligibility and unit rates vary by supplier and can change.
Fast answer: what’s usually “cheapest” for electric home heating?
There isn’t one single cheapest electricity tariff for home heating across the UK. The lowest cost setup depends on how your heating uses electricity (all day vs mostly overnight), your meter type (single-rate vs Economy 7 / smart meter), and whether you can shift usage into off-peak hours.
If you have storage heaters
You’ll usually look at an Economy 7-style or other time-of-use tariff so most heating is charged overnight. It can be cheaper if you genuinely use the majority of electricity at night and your day rate isn’t too high.
If you have a heat pump
Many households do best on a competitive single-rate tariff because heat pumps run across the day. A time-of-use tariff can still work if you can shift hot water or other loads to cheaper hours.
If you use panel heaters (direct electric)
The “cheapest” option is often the lowest unit rate you can get, but bills can still be high because direct electric heating uses a lot of kWh. Consider a tariff that suits your routine and thermostat controls that reduce wasted heat.
Quick rule of thumb: time-of-use tariffs (Economy 7 / EV-style plans) are only likely to be cheapest for heating if you can reliably move a large share of your consumption into the discounted hours (often overnight). If most heating is during the day/evening, a strong single-rate tariff may cost less overall.
Key takeaways
- Cheapest tariff = lowest annual cost for your usage pattern, not the lowest headline unit rate.
- For Economy 7, check the day rate uplift and your real night-time share.
- Heat pumps often suit competitive single-rate plans unless you can shift hot water/other loads.
- Prepayment options can be limited; always compare like-for-like by payment method.
- Always check exit fees, standing charge, and whether rates vary by your region.
Before you compare, know these 4 details
- 1) Your meter type
- Single-rate, Economy 7, smart meter, or other time-of-use arrangement.
- 2) How your heating runs
- Mostly overnight (storage) vs all-day (heat pump) vs peaks (panel heaters).
- 3) Payment method
- Direct Debit, receipt of bill, or prepayment can change availability and pricing.
- 4) Your postcode region
- Standing charges and unit rates vary by distribution region (not just supplier).
Compare heating-friendly electricity tariffs (whole of market)
Tell us a few details and we’ll match you with tariffs that make sense for electric home heating — including single-rate and Economy 7/time-of-use options where suitable.
Tip: If you’re on a heat pump, you’ll usually want to compare single-rate and time-of-use side-by-side. If you’re on storage heaters, include your Economy 7 details if known.
How to choose the right tariff (simple steps)
- Identify your heating type (storage heaters, heat pump, panel heaters).
- Check your meter: single-rate or Economy 7 (or smart meter time-of-use).
- Estimate your off-peak share: what percentage of your total kWh is overnight/cheap hours?
- Compare total annual cost (unit rates + standing charges), not just the cheapest headline rate.
Get a quote (takes a minute)
Tariff types that can work for home heating (UK)
Single-rate (flat unit rate)
One unit rate all day. Often best when your heating runs at mixed times (common with heat pumps).
- Simple to compare
- No “expensive daytime” risk
- Still watch the standing charge
Economy 7 (two rates: day & night)
Cheaper night rate for a set number of hours (often 7). Designed for storage heaters and overnight hot water heating.
- Can be cheaper if night usage is high
- Day rate is usually higher than single-rate
- Night hours vary by meter/region
Time-of-use (TOU) / smart tariffs
Prices vary by time (and sometimes day). Some tariffs have specific cheap windows.
- Potentially strong savings if you can shift loads
- Not always ideal for “always-on” heating
- May require a smart meter and eligibility criteria
Important: Some “EV tariffs” include very cheap overnight electricity but higher rates at other times. They can still work for heating if you can schedule hot water, storage heating, or other large loads into the cheap window. Always compare annual cost, not just the cheapest hour.
Comparison table: which tariff is usually cheapest for your heating?
Use this as a decision aid. Your actual cheapest option depends on your supplier’s rates in your region, your standing charge, and how much electricity you use in each time band.
| Heating setup | Often cheapest tariff type | What to check | Common “gotcha” |
|---|---|---|---|
| Storage heaters + immersion overnight | Economy 7 / suitable TOU | Night hours, day-rate uplift, % night usage | Day rate makes daytime cooking/lighting expensive |
| Heat pump (space heat mostly daytime) | Competitive single-rate (often) | Unit rate + standing charge; any peak pricing | TOU peaks can raise costs if you can’t shift usage |
| Panel heaters (evening-heavy) | Single-rate (often) | Standing charge; evening unit rate on TOU plans | Cheap overnight rates don’t help if you heat at 6–10pm |
| Mixed loads (heating + EV + smart controls) | TOU can win (household-specific) | Cheap window length, peak rates, ability to schedule loads | “Peak” pricing can outweigh cheap windows if usage is inflexible |
Decision checklist: who it suits / who it doesn’t
Economy 7 / TOU suits you if…
- You have storage heaters or can heat water overnight
- You can schedule loads reliably into cheaper hours
- Your night usage is typically 35–45%+ of total (rough guide)
Economy 7 / TOU may not suit if…
- Most heating is evening/daytime and can’t be shifted
- You’re out of the home all day and need heat in the evening peak
- You don’t have the right meter or can’t change meter easily
Two realistic scenarios (with numbers)
These are simplified examples to show the trade-offs. Rates are illustrative and not a promise of what you’ll pay.
Scenario A: Storage heaters (Economy 7 likely)
- Annual usage: 7,000 kWh
- Night share: 55% (3,850 kWh night / 3,150 kWh day)
- Example single-rate: 24p/kWh + 55p/day standing charge
- Example E7: 14p/kWh night, 30p/kWh day + 55p/day standing charge
Estimated annual unit cost:
Single-rate: 7,000 × £0.24 = £1,680
E7: (3,850 × £0.14) + (3,150 × £0.30) = £1,484
Standing charges would be added to both. If your night share fell, E7 could stop being cheaper.
Scenario B: Heat pump (single-rate often)
- Annual usage: 9,500 kWh
- Night share: 20% (1,900 kWh night / 7,600 kWh day)
- Example single-rate: 23p/kWh + 55p/day standing charge
- Example E7: 14p/kWh night, 31p/kWh day + 55p/day standing charge
Estimated annual unit cost:
Single-rate: 9,500 × £0.23 = £2,185
E7: (1,900 × £0.14) + (7,600 × £0.31) = £2,622
If you can heat hot water overnight and increase off-peak share, the gap can shrink.
Why we include scenarios: the day vs night split is often the deciding factor. If you don’t know your split, look at your bill, online account, or smart meter app for day/night kWh.
Costs, exclusions and common pitfalls (UK)
These are the issues most likely to make a “cheap” heating tariff turn out expensive in real life.
1) Standing charge can dominate
For lower-usage households (or very efficient homes), the standing charge can be a large share of the bill. Compare total annual cost, not just p/kWh.
2) Economy 7 day rate shock
If you don’t use enough electricity overnight, the higher daytime unit rate can wipe out the cheaper night hours.
3) Meter and eligibility limits
Some smart/time-of-use tariffs require a smart meter, specific meter configuration, or compatible payment method (often Direct Debit).
4) Exit fees and fixed-term constraints
Fixed tariffs can offer stability, but may include exit fees. If you’re renting, moving soon, or expecting a meter change, check the terms carefully.
5) “Cheap hours” don’t match your routine
Even if a tariff has low off-peak pricing, you only benefit if your heating/hot water can run then. Storage heaters can; heat pumps may not if you need comfort heat at peak times.
If you’re in a flat or on a complex meter
Some homes have restricted meter setups (legacy Economy 10, landlord arrangements, or multiple registers). In these cases, tariff choice can be limited. We’ll show what’s available for your meter where possible, but you may need to speak to your supplier or network operator before changing meter configuration.
FAQs: cheapest electricity tariff for heating
Is Economy 7 always cheaper for electric heating?
No. Economy 7 is typically only cheaper overall if a significant portion of your electricity use is during the night rate hours. If most usage is daytime/evening, a single-rate tariff may cost less.
What night-time percentage makes Economy 7 worthwhile?
There’s no universal threshold because day/night rates differ by supplier and region. As a rough guide, many households look for 35–45%+ off-peak usage — but you should compare estimated annual costs using your own split.
Do heat pumps work best on special tariffs?
Not always. Heat pumps often run across the day, so a competitive single-rate tariff can be best. A time-of-use tariff may help if you can schedule hot water or other loads into cheap windows without compromising comfort.
Can I switch from Economy 7 to single-rate (or vice versa)?
Often yes, but it depends on your meter and supplier. Some changes may require a meter reconfiguration or replacement, which can take time. Always confirm whether your meter supports the tariff you want before switching.
Do “EV tariffs” help if I don’t have an EV?
Sometimes, but check eligibility and the rest-of-day rate. These tariffs may be attractive for storage heating or overnight hot water, but can be costly if your heating demand is mainly in peak hours.
How do standing charges affect the “cheapest” tariff?
Standing charges vary by region and tariff. Two tariffs with similar unit rates can have very different standing charges, which can materially change annual cost — especially for smaller homes or mild winters.
Are prepayment customers offered the same heating-friendly tariffs?
Availability can be more limited on prepayment, and rates can differ. Compare tariffs specifically for your payment method. If you’re considering moving to Direct Debit, check eligibility and whether it suits your budgeting needs.
Will switching tariff affect my heating controls or thermostat?
The tariff itself won’t change your controls, but a time-of-use tariff may require you to adjust schedules (immersion timer, storage heater charging, heat pump hot water timings) to benefit from cheaper hours.
Trust, methodology and sources
Page information
- Written by
- EnergyPlus Editorial Team
- Reviewed by
- Energy Specialist
- Last updated
- May 2026
How we assess “cheapest” for home heating
We treat “cheapest” as the lowest estimated annual cost for a household’s expected usage. For electric heating, the key driver is when you use electricity (day vs night/cheap windows), not just how much you use.
- Inputs we prioritise: meter type (single/E7/smart), payment method, postcode region, day/night usage split, and standing charge.
- What we compare: unit rates (single or time-banded) + standing charge, plus any tariff features that may affect suitability (eligibility, contract length, exit fees).
- Limitations: tariffs can change frequently; not all homes can access all meter configurations; “cheap windows” vary by tariff and may not match your routine.
- What we avoid: claiming a tariff is cheapest for everyone, or implying guaranteed savings.
How to sanity-check any result: look at your last 12 months’ kWh (or best estimate), confirm your day/night split (if applicable), then compare annualised cost rather than focusing on a single rate.
Helpful UK sources
- Ofgem (UK energy regulator) — guidance on switching, consumer rights, and market rules.
- Citizens Advice: energy — independent help if you’re struggling with bills or have supplier issues.
- GOV.UK: find energy grants — support and grants (eligibility varies across the UK).
Ready to find the cheapest tariff for your heating setup?
Compare whole-of-market options for your postcode and usage pattern. We’ll surface tariffs that are more likely to fit electric heating — with clear terms and caveats.
Estimates only. Availability and pricing depend on meter type, payment method, credit checks (where applicable) and regional rates.
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