Cheapest tariff for heat pump homes in the UK (how to find it)
Heat pumps use more electricity than most homes, so the “cheapest tariff” depends on how your pump runs, your meter, and whether you can shift usage off‑peak. Use this guide to choose the right tariff type and compare whole‑of‑market options in minutes.
- UK-specific: works for standard meters, smart meters, Economy 7, and heat pump-friendly time-of-use tariffs
- Clear checklist for what to pick (and what to avoid) based on your setup
- Realistic cost scenarios with assumptions, plus pitfalls like standing charges and tariff restrictions
Estimates only. Availability and prices vary by region, meter type, payment method and eligibility. Always check tariff terms, exit fees and standing charges before switching.
Fast answer: what’s usually cheapest for heat pump homes?
For most UK heat pump households, the cheapest tariff is the one that matches when your heat pump runs and how your home stores heat. In practice:
If you can shift heating to off‑peak
A time-of-use electricity tariff (with cheap overnight/low-demand hours) often wins—if your heat pump, hot water, and/or a buffer tank can run more during those hours.
If you can’t reliably shift usage
A competitive single‑rate tariff (often fixed for price certainty) can be cheaper overall than a time-of-use plan with a high daytime rate.
If you’re on Economy 7
Economy 7 can work well for heat pumps only if your off‑peak window matches your heating/hot water schedule and the standing charge + day rate don’t cancel out the night savings.
Key takeaway: Don’t choose based on unit rate alone. For heat pumps, the “cheapest” tariff is usually the best total annual cost estimate once you include standing charge, day/night split, and your expected seasonal electricity use.
What you’ll need (2 minutes)
- Your postcode (tariffs vary by region)
- Meter type: smart, standard, or Economy 7
- How you pay: monthly Direct Debit, pay on receipt, or prepayment
- Approx. annual electricity use (or heat pump model + usage pattern)
Quick rule of thumb
If you can move at least 30–40% of heat pump/hot water electricity into cheaper hours, time-of-use tariffs become more likely to beat a strong single-rate deal.
This is a planning guide, not a guarantee—your actual split depends on weather, insulation, flow temperature, controls, and occupancy.
Compare whole-of-market tariffs for heat pump homes
Tell us a few details and we’ll help you compare tariffs that fit heat pump usage—single-rate, fixed, variable, Economy 7 and smart time-of-use options (where available).
Why we ask about your meter: many off‑peak tariffs need a smart meter (or specific meter setup). If you don’t have one, we’ll still show the best standard options.
Before you switch: quick checks
- Exit fees on your current tariff (common on fixed deals)
- Heat pump warranty/installer terms: rarely restrict supplier, but check if your controls are linked to a particular tariff/app
- Standing charge differences (can matter a lot on higher-use homes too)
- Payment method: Direct Debit is often cheaper than pay on receipt
Get your heat pump tariff quote
Renters: you can usually switch supplier if you pay the energy bills, but check your tenancy and whether the meter is prepayment or managed by a third party.
How to choose the cheapest tariff for your heat pump (step-by-step)
- Estimate your annual electricity use. If you don’t know it, use your last 12 months’ bills. Heat pump homes often use more electricity than the UK average, especially in winter.
- Work out your “off‑peak potential”. Can you run hot water (and some space heating) overnight or in cheap windows without making the house uncomfortable?
- Check meter eligibility. Many smart time-of-use tariffs need a smart meter with half-hourly reads enabled. Economy 7 requires a compatible day/night meter configuration.
- Compare based on total annual cost. Include standing charge and your expected split of day vs off‑peak electricity.
- Read the tariff terms. Look for price guarantees, exit fees, and whether rates can change (variable tariffs).
- Sanity-check comfort and control. A tariff is only “cheap” if you can actually use it—without cold mornings or constantly overriding settings.
Tariff types for heat pump homes (what to compare)
Heat pumps run for long periods at low power, so unit rate, standing charge, and time bands all matter. This table shows what each tariff type is best for.
| Tariff type | When it can be cheapest | What to watch | Typical requirements |
|---|---|---|---|
| Single-rate (fixed) | If you can’t shift usage much, or you want predictable bills through winter. | Exit fees; unit rate may be higher than the best variable at times. | Any meter; often cheapest on Direct Debit. |
| Single-rate (variable) | If you want flexibility (no exit fees) and are comfortable with price changes. | Rates can change; good to re-check regularly. | Any meter; prices vary by region. |
| Economy 7 (day/night) | If you can run hot water/heat overnight and accept a higher daytime rate. | Off‑peak hours differ by region; day rate may be significantly higher; standing charge can be higher too. | E7 meter setup; supplier must support it. |
| Smart time-of-use | If you can shift a meaningful share of heat pump load into cheap windows (often overnight). | High peak/day rates can outweigh cheap windows; terms/eligibility vary; some tariffs change prices more often. | Smart meter, half-hourly readings (usually), compatible billing. |
Decision checklist: choose this if…
- Time-of-use / Economy 7
- You can schedule hot water overnight, have a buffer tank, or your home holds heat well (good insulation, low flow temps).
- Single-rate fixed
- You want stable pricing through winter and don’t want to manage time bands.
- Single-rate variable
- You prefer flexibility and are happy to re-check the market when prices change.
Avoid or be cautious if…
- You can’t shift heat pump use (or you need warmth during peak hours) → time-of-use may backfire.
- You’re on a legacy Economy 7 setup but barely use night electricity → you may pay a higher day rate for no benefit.
- You’re considering a tariff mainly for a low unit rate but it has a much higher standing charge.
- You’re on prepayment → tariff choice may be narrower and prices can differ.
Important: The scenarios below are illustrations to help you decide. Your actual rates depend on supplier, region, payment method and eligibility, and your consumption changes with weather and controls.
Scenario 1: well-insulated home that can shift load
Assumptions (example only): 4-bed home in England/Wales, smart meter, Direct Debit. Annual electricity use 10,000 kWh (heat pump + household). Able to shift 45% of usage into off‑peak windows via hot water schedule and gentle overnight heating.
| Illustrative plan | Rates used | Estimated annual energy cost |
|---|---|---|
| Single-rate | 28p/kWh, standing charge 55p/day | (10,000×£0.28) + (365×£0.55) ≈ £3,002 |
| Time-of-use | Off‑peak 14p, peak 32p, standing charge 55p/day | (4,500×£0.14)+(5,500×£0.32)+(365×£0.55) ≈ £2,591 |
In this example, time-of-use is cheaper because a large share of electricity is moved into low-cost hours. If your off‑peak share drops, the advantage shrinks quickly.
Scenario 2: modest shift potential (daytime heating needed)
Assumptions (example only): 2–3 bed home, mixed insulation, needs warmth during morning/evening peaks. Annual electricity use 7,500 kWh. Off‑peak share achievable: 20% (mostly hot water).
| Illustrative plan | Rates used | Estimated annual energy cost |
|---|---|---|
| Single-rate | 27p/kWh, standing charge 55p/day | (7,500×£0.27) + (365×£0.55) ≈ £2,227 |
| Time-of-use | Off‑peak 14p, peak 34p, standing charge 55p/day | (1,500×£0.14)+(6,000×£0.34)+(365×£0.55) ≈ £2,451 |
Here the high peak rate outweighs the cheaper hours. A good single-rate tariff may be the cheaper, lower-effort choice.
How to use these scenarios: copy the structure using your own estimated kWh and a realistic off‑peak share. If you’re unsure, compare at 20%, 35% and 50% off‑peak to see how sensitive your costs are.
Costs, exclusions & common pitfalls (heat pump-specific)
Standing charges can wipe out “cheap unit rates”
A tariff with a slightly cheaper kWh rate but a higher standing charge isn’t always better—especially if you’re comparing across regions where standing charges differ. Always compare the estimated annual total.
Economy 7 hours aren’t universal
Off‑peak times vary by region and meter configuration (and can shift with GMT/BST). If your heat pump can’t reliably run in the off‑peak window, you may end up paying the higher day rate.
Time-of-use tariffs can punish “always-on” comfort
Many heat pumps are most efficient running steadily. If you’re comfortable with steady temperatures through the day, a high peak rate may cost more than it saves—even if overnight electricity is cheap.
Smart meter and half-hourly data permissions
Some tariffs require smart meter readings and may require half-hourly data collection. If you prefer not to share that data, your tariff options may be more limited.
Heat pump controls: what not to do
- Don’t chase cheap hours by turning the heat pump fully off for long periods without understanding comfort and humidity impacts.
- Don’t raise flow temperatures just to “heat faster” in a short cheap window—this can reduce efficiency and increase running costs.
- Do use weather compensation and gentle scheduling where possible, and ask your installer for settings guidance.
Other exclusions to check before switching
- Exit fees and end date of your current fixed tariff
- Payment method restrictions (some deals are Direct Debit only)
- Prepayment meters (tariff choice can be narrower)
- Complex meters (legacy multi-rate meters may limit supplier options until reconfigured)
- Bundled offers (e.g., add-ons that look cheap but change after an intro period)
Comfort first: If a tariff requires you to compromise on warm mornings or hot water availability, it may not be the right fit—even if it looks cheaper on paper.
FAQs: cheapest heat pump tariffs (UK)
Do heat pumps need a special electricity tariff?
No. A heat pump can run on any standard electricity tariff. Some time-of-use tariffs can be cheaper if you can shift usage, but they’re optional and eligibility varies (often smart meter required).
Is Economy 7 good for a heat pump?
Sometimes. It can work well if you can run hot water and some heating overnight. But Economy 7 often has a higher daytime rate, so it may cost more if most heating happens in the day/evening.
Do I need a smart meter for the cheapest heat pump tariffs?
Not always. The cheapest deal for you might be a strong single-rate fixed tariff, which usually doesn’t require a smart meter. However, many time-of-use tariffs require a smart meter and half-hourly readings.
Will a “cheap overnight tariff” definitely reduce my bills?
No. It depends on how much electricity you can move into the cheap hours and what the peak/day rate is. Heat pumps often run through the day in winter, so a high daytime rate can outweigh overnight savings.
Can I switch tariffs if I’m renting?
Usually yes if you pay the energy bills and your tenancy doesn’t prohibit it. If you have a prepayment meter or the energy is included in rent (or managed), switching may not be possible.
Will switching affect my heat pump warranty?
Switching electricity supplier typically doesn’t affect a heat pump warranty. If you use manufacturer-connected controls or third-party optimisation services, check whether any features depend on specific tariff data access.
What details change electricity prices in the UK?
Your postcode/region, meter type, payment method (Direct Debit vs pay on receipt vs prepay), tariff type (fixed/variable/time-of-use), and supplier terms (standing charge, discounts, exit fees).
Should I get dual fuel if I have a heat pump?
Many heat pump homes are electric-only for heating, but you might still have gas for cooking or a legacy boiler. Dual fuel can be convenient, but it isn’t automatically cheaper—compare electricity and gas costs separately.
Still unsure? Use the form above and tell us your meter type and postcode—those two details alone can materially change which tariffs are cheapest.
Trust, methodology & sources
Page ownership
- Written by: EnergyPlus Editorial Team
- Reviewed by: Energy Specialist
- Last updated: April 2026
How we assess “cheapest” for heat pump homes
We treat “cheapest” as lowest estimated annual electricity cost for a given household profile, not the lowest headline unit rate.
- We consider standing charge + unit rates across relevant time bands (single-rate, day/night, time-of-use).
- We account for usage split between peak and off‑peak based on realistic controllability (e.g., hot water scheduling).
- We include eligibility constraints (smart meter requirements, meter configuration, payment method).
- We flag non-price terms that affect value (exit fees, rate variability).
Limitations (what this guide can’t do)
- We can’t know your exact heat pump consumption without your meter data or bills; winter usage can dominate annual costs.
- Time-of-use tariffs vary widely by supplier, region and eligibility; some change rates over time.
- Heat pump efficiency depends on insulation, emitter sizing, flow temperature and weather—so cost outcomes differ between homes.
Sources (UK)
- Ofgem (UK energy regulator) — consumer guidance, switching rules, tariffs and market oversight
- Citizens Advice: energy advice — practical consumer rights and switching support
- GOV.UK: heat pump guidance — official information about heat pumps and UK programmes
We aim to keep this page current, but tariff availability and prices can change quickly. If something looks inconsistent, compare again using your latest bill data.
Ready to find your cheapest heat pump tariff?
Compare whole-of-market options using your postcode and meter details. We’ll highlight tariffs that fit heat pump usage patterns and explain any eligibility requirements.
No guarantees of savings. Quotes are based on the information you provide and tariff availability in your area.
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