Best heat pump electricity tariff in the UK (how to choose)
A practical, UK-specific guide to picking the most suitable tariff for an air source or ground source heat pump—based on your meter, usage pattern, and risk comfort, with examples and pitfalls to avoid.
- Understand which tariff types can work best for heat pumps (standard, time-of-use, smart, tracker, fixed)
- Check eligibility and common gotchas (smart meter requirements, regions, exit fees, price caps)
- Use our decision checklist and two worked examples with realistic assumptions
Estimates only. Tariff availability varies by supplier, region, meter type and payment method. Always check the tariff information label before switching.
Fast answer: what’s the best heat pump electricity tariff?
There isn’t one single “best” heat pump tariff for everyone in the UK. The best option depends on how much electricity your heat pump uses, when you can run it, and what meter you have.
In most homes, a heat pump-friendly tariff is usually one of these:
- Time-of-use (TOU) if you can shift demand to cheaper hours (often overnight) and you have a compatible smart meter.
- Competitive single-rate fixed or standard variable if your usage is mostly daytime or you can’t easily shift demand.
- Tracker if you’re comfortable with prices that change (often daily) and you want to follow the market (with risk controls in mind).
Key takeaways (UK-specific)
Smart meter matters: many TOU tariffs require a working smart meter sending half-hourly readings.
Check standing charge: a low unit rate can be offset by a high daily standing charge—especially in low-usage homes.
Heat pump flexibility varies: homes with better insulation, larger emitters (radiators/UFH), and a hot water cylinder can shift more load.
Eligibility differs by region/payment: some tariffs exclude prepayment, certain meter types, or specific network regions.
If you want a tailored shortlist without guesswork, use our comparison form below—tell us your postcode, meter type and contact details, and we’ll help you compare whole-of-market options that match your setup.
How to choose a heat pump electricity tariff (step-by-step)
Use this quick process before you switch. It’s designed for UK households with an air source heat pump (ASHP) or ground source heat pump (GSHP) and typical domestic electricity supply.
- Confirm your meter and readings. Do you have a smart meter (SMETS2/working SMETS1) able to send readings? If not, many TOU tariffs won’t be available.
- Estimate your annual electricity use. Include the heat pump, immersion backup (if used), cooking and appliances. If you have last year’s kWh from bills, use that.
- Work out when your heat pump runs. Many systems run more during cold daytime hours. If you can pre-heat the home or hot water overnight (within comfort limits), TOU may help.
- Check your heating/hot water controls. A hot water cylinder, weather compensation, and sensible schedules can increase off-peak usage without harming comfort.
- Compare the full tariff cost, not just the cheapest rate. Look at: unit rates by time band, standing charge, discounts, exit fees, contract length, and whether rates can change.
- Sanity-check the “what if” risk. If a tracker rises for a week in winter, can you afford it? If a TOU peak rate is high, can you avoid peak hours?
Important: Heat pump performance (and bills) depend on insulation, flow temperatures, system commissioning, weather and occupant behaviour. A tariff can help, but it can’t fix an inefficient setup.
Compare heat pump tariffs (whole-of-market)
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Heat pump tariff types compared (UK)
This table focuses on what matters for heat pumps: when you can use power, meter eligibility, price risk, and common deal-breakers.
| Tariff type | Best when… | Typical requirements | Watch-outs for heat pumps |
|---|---|---|---|
| Single-rate (SVT or fixed) | Your heat pump runs mostly during daytime, or you want simplicity and predictability. | Works with most meter types. Fixed deals often have credit checks and may exclude some prepay customers. | Can be more expensive than TOU if you could shift load (hot water, pre-heat). Check standing charge. |
| Economy 7 / dual-rate | You can use a meaningful chunk of electricity overnight (e.g., hot water heating, pre-heat, EV charging). | Dual-rate meter and appropriate tariff. Off-peak hours vary by region/meter setup. | Day rate can be higher. If your heat pump runs most in daytime (cold spells), savings can disappear. |
| Time-of-use (smart TOU) | You can schedule hot water and some heating to cheaper windows without harming comfort. | Working smart meter (often half-hourly data). Some tariffs require direct debit and online account. | Peak rates can be very high. Check exact peak times (often early evening) and whether your heat pump needs to run then. |
| Tracker (market-linked) | You accept price variation and want the potential to benefit when wholesale prices are low. | Varies by supplier. Often requires credit mode and online management. | Not ideal if you need strict monthly budgeting. Winter spikes can coincide with high heat pump demand. |
| EV/heat pump “bundle” tariffs | You have an EV or home battery and can shift significant load to the cheap window. | May require compatible charger/app, smart meter, or specific hardware integrations. | Cheap window may be short; outside-window rates can be higher. Check compatibility and exit terms. |
Decision checklist: who it suits (and who it doesn’t)
Time-of-use is more likely to suit you if…
- You have a working smart meter and are happy with half-hourly readings.
- You can heat hot water overnight (cylinder) and keep a sensible schedule.
- Your home holds heat reasonably well (insulation/draughtproofing).
- You can avoid the highest-price peak windows most days.
A single-rate fixed/SVT may be better if…
- Your heat pump demand is mostly daytime and comfort requires steady running.
- You don’t have (or don’t want) a smart meter-dependent tariff.
- You value predictable bills and simpler comparisons.
- You’d rather focus on efficiency (flow temps, controls) than time shifting.
A tracker can be suitable if…
- You can handle price changes and monitor rates regularly.
- You have financial headroom for higher-price periods.
- You prefer market-linked pricing over long fixed terms.
Tip: If you’re unsure, start by comparing a strong single-rate deal versus one TOU option you’re eligible for, then test your actual off-peak share for a month or two (where your supplier/app allows). Avoid committing to a complex tariff if you can’t change your routine.
Costs, exclusions and common pitfalls (heat pump tariffs)
1) Standing charge can dominate
Especially in smaller flats or efficient homes, a high standing charge can wipe out a “good” unit rate. Compare total annual cost using your estimated kWh, not headlines.
2) Peak windows vs winter reality
Many TOU tariffs have the highest rates in late afternoon/early evening—exactly when homes are occupied and temperatures drop. If you can’t avoid that window, TOU can cost more.
3) Smart meter / data requirements
Some TOU tariffs require half-hourly readings and a reliably communicating smart meter. If your meter struggles to connect, billing and eligibility can get messy.
4) Exit fees & contract terms
Fixed tariffs may have exit fees. If you’re trialling a new heating pattern (or waiting for a smart meter upgrade), a flexible tariff can reduce risk.
5) Payment method exclusions
Some deals are only available on direct debit or exclude prepayment. If you’re moving from prepay to credit, check supplier processes and timelines.
6) “Heat pump tariff” marketing
Some tariffs are branded for heat pumps but are essentially TOU or standard deals. Judge by the tariff information label: unit rates, standing charge, and time bands.
Two realistic scenarios (with numbers)
These are illustrative estimates to show how tariff structure can matter. We’re using simple arithmetic so you can replicate it with your own figures.
Scenario A: Family home with some flexibility (TOU vs single-rate)
- Assumptions
- Annual electricity: 8,000 kWh (heat pump is a large share). Smart meter installed. Able to shift some hot water and a little heating overnight.
- Tariff option 1 (single-rate)
- Unit rate: 24p/kWh. Standing charge: 55p/day.
- Tariff option 2 (TOU)
- Off-peak: 12p/kWh for 7 hours overnight. Peak/other: 30p/kWh. Standing charge: 55p/day. Off-peak share achieved: 40% (3,200 kWh off-peak; 4,800 kWh peak/other).
- Estimated annual cost (electricity only)
- Single-rate: 8,000×£0.24 = £1,920 + (365×£0.55=£200.75) ? ~£2,121.
- TOU: (3,200×£0.12=£384) + (4,800×£0.30=£1,440) = £1,824 + £200.75 ? ~£2,025.
What this shows: TOU can help if you can genuinely shift a meaningful share. But if off-peak share drops or peak rates rise, the advantage can shrink or reverse.
Scenario B: Smaller home, low flexibility (TOU can backfire)
- Assumptions
- Annual electricity: 4,500 kWh. Smart meter installed, but home needs daytime heating; limited ability to shift. Off-peak share: 15% (675 kWh off-peak; 3,825 kWh peak/other).
- Tariff option 1 (single-rate)
- Unit rate: 24p/kWh. Standing charge: 55p/day.
- Tariff option 2 (TOU)
- Off-peak: 12p/kWh. Peak/other: 33p/kWh. Standing charge: 60p/day.
- Estimated annual cost (electricity only)
- Single-rate: 4,500×£0.24= £1,080 + £200.75 ? ~£1,281.
- TOU: (675×£0.12=£81) + (3,825×£0.33=£1,262.25)= £1,343.25 + (365×£0.60=£219) ? ~£1,562.
What this shows: a cheap off-peak rate doesn’t help much if most of your heat pump demand lands in the higher-rate hours—plus standing charge differences matter.
Replicate this for your home: replace the kWh and rates with your actual annual usage and the tariff’s unit rates/standing charge. If you don’t know your off-peak share, start with 15%, 30% and 45% to see the range.
FAQs: heat pump electricity tariffs (UK)
Do I need a smart meter for a heat pump tariff?
Not for all tariffs. Standard single-rate and many fixed deals work without one. However, many time-of-use tariffs require a smart meter that can provide half-hourly data. If you’re unsure, check your meter type on your bill or ask your supplier.
Is Economy 7 good for heat pumps?
It can be, but it depends on how much electricity you can use overnight. If your heat pump mostly runs during the day in cold weather, the higher day rate can outweigh the cheaper night rate. Economy 7 also has regional off-peak hours that can vary.
Can I run my heat pump mostly off-peak?
Some households can shift part of demand, mainly by heating hot water overnight and gently pre-heating the home. But many heat pumps still need to run in daytime for comfort, especially in poorly insulated homes. Avoid aggressive scheduling that makes rooms uncomfortable or drives up backup heating.
Are “tracker” tariffs safe for heat pump households?
Trackers can work, but they carry risk because the price can rise—sometimes during winter when your heat pump uses more electricity. They’re generally better for households that can absorb short-term increases and are comfortable monitoring prices. Always check how frequently rates change and whether there are caps/limits.
Does the Energy Price Cap apply to heat pump tariffs?
Ofgem’s price cap applies to default tariffs (like Standard Variable Tariffs) and sets a limit based on typical usage, not a maximum bill for everyone. Fixed and some specialist/time-of-use tariffs may be priced differently. Always compare the tariff’s full rates and terms.
Will switching tariff affect my heat pump warranty or servicing?
Tariff switching shouldn’t affect your heat pump warranty. What matters more is correct commissioning, servicing, and sensible controls. If you plan to change schedules significantly (e.g., more overnight running), check the installer’s guidance to maintain comfort and efficiency.
I’m on prepayment—can I get a heat pump-friendly tariff?
Some suppliers offer fewer specialist tariffs to prepayment customers. You may still be able to access a competitive standard tariff, and in some cases you can move to credit mode if eligible. Availability and process vary by supplier, meter and payment history.
What details do I need to compare tariffs accurately?
Your postcode, estimated annual kWh (or recent bills), meter type (smart/standard/E7), payment method, and whether you have flexible loads (hot water cylinder, EV, battery). If you have half-hourly usage data, even better—TOU comparisons become much more reliable.
Trust, methodology and sources
Page details
- Written by
- EnergyPlus Editorial Team
- Reviewed by
- Energy Specialist
- Last updated
- March 2026
How we assess “best” for heat pump tariffs
We treat “best” as best fit for the household, not a single universal winner. Our guidance prioritises what tends to move the needle for heat pump running costs while keeping risk and eligibility clear.
- Total cost, not just unit rate: standing charge + all applicable unit rates.
- Heat pump usage pattern: ability to shift hot water/heating, and likely demand during peak windows.
- Eligibility constraints: smart meter/half-hourly requirement, region/network, payment method, and meter type.
- Price risk: fixed vs variable vs tracker, and the user’s budget tolerance.
- Practicality: whether a tariff requires apps, specific hardware, or behavioural changes that many households won’t sustain.
Limitations (important)
- Examples use simplified rates and don’t include every tariff feature (discounts, incentives, complex multi-band TOU structures).
- Heat pump electricity use varies widely by property, insulation, weather, flow temperature and controls.
- Tariffs can change, become unavailable, or have different rates by region and payment method.
- This guide is information, not financial advice. Always check the supplier’s tariff information label and contract terms.
Sources (UK)
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