Is a heat pump electricity tariff cheaper in the UK?
A dedicated heat pump tariff can reduce running costs versus a standard electricity rate, but it depends on your heat pump efficiency (SCOP), your home’s heat demand, and when you use electricity. Compare whole-of-market UK tariffs and see what could be cheaper for your home.
- Check if a heat pump tariff beats your current unit rate (and standing charge)
- Understand time-of-use pricing and when it helps (or doesn’t)
- Whole-of-market comparison for home energy (not business)
Typical comparisons take a few minutes. Have a recent bill handy for the most accurate result.
Compare heat pump electricity tariffs (whole-of-market)
If your home is heated by an air source or ground source heat pump, the electricity tariff you’re on can make a noticeable difference to annual running costs. Some UK suppliers offer heat pump-friendly or time-of-use electricity tariffs with cheaper off-peak rates. However, a lower unit rate can be offset by a higher peak rate or standing charge.
EnergyPlus compares whole-of-market home energy tariffs so you can check whether a heat pump tariff is actually cheaper for your usage pattern. If you already have a smart meter, you’re typically in a good position to access time-of-use options.
Tip: The cheapest option for a heat pump is rarely “one-size-fits-all”. Your best tariff depends on (1) when you run the heat pump, (2) hot water schedule, (3) whether you have an EV or battery, and (4) your home’s insulation and flow temperature.
Get personalised prices
Fill in the form and we’ll show available UK home electricity tariffs that may suit heat pump use.
What is a heat pump electricity tariff?
In the UK, “heat pump electricity tariff” is commonly used to describe an electricity plan designed to suit heat pump households. In practice, this usually means one of the following:
Time-of-use (TOU) tariffs
Cheaper electricity at set off-peak times (often overnight). Best if you can shift hot water and some heating demand into low-rate windows.
Multi-rate / smart tariffs
Different rates throughout the day (e.g. peak, off-peak, shoulder). More flexible, but you must check whether your peak use becomes more expensive.
Standard single-rate tariffs
One unit rate all day. Sometimes still the cheapest overall if your heat pump runs mostly during daytime and you can’t shift demand.
Important: A tariff marketed for EVs can also work well for heat pumps, but only if your household can use the cheaper periods. Always compare using your expected usage profile.
When is a heat pump tariff cheaper than standard electricity?
A heat pump tariff can be cheaper in the UK when the weighted average price you pay per kWh (including how much electricity you use at each rate and the standing charge) ends up lower than a single-rate tariff.
Often cheaper if you can shift demand
- You heat domestic hot water in an off-peak window.
- Your home holds heat well (good insulation, low heat loss) so you can “pre-heat”.
- You have a hot water cylinder and can schedule it.
- You have an EV or home battery (improves use of low-rate electricity).
- You can run appliances (dishwasher, washing machine) off-peak too.
Often not cheaper if most use is at peak
- Someone is home all day and heating demand is mostly daytime/evening.
- High peak rate + high standing charge outweigh off-peak savings.
- Your heat pump needs higher flow temperatures (lower efficiency), increasing kWh usage.
- Your property loses heat quickly, so shifting demand is harder.
- You can’t access TOU tariffs (e.g. no smart meter where required).
The most reliable approach is to compare tariffs using realistic heat pump consumption and timing, rather than assuming any “heat pump tariff” will be cheaper.
How to estimate whether a heat pump tariff will save you money
You don’t need perfect data to get a useful estimate. The goal is to compare your likely annual electricity cost on:
- a standard single-rate tariff, versus
- a time-of-use / multi-rate tariff that may suit heat pump use.
- Estimate your heat pump electricity use (kWh). If you know annual heat demand (kWh of heat) and your seasonal efficiency (SCOP), then: electricity ˜ heat demand ÷ SCOP.
- Split usage by time. For TOU tariffs, decide what percentage of that electricity will land in off-peak vs peak (e.g. hot water overnight, space heating daytime).
- Add your non-heating electricity. Cooking, lighting and appliances still matter—especially at peak times.
- Compare total annual cost. Multiply kWh by the relevant unit rates and add the standing charge for the year.
- Sense-check comfort and practicality. A cheaper tariff isn’t worth it if your home won’t stay comfortable with the schedule you’d need.
EnergyPlus approach: We focus on the tariff outcome—what you pay over a year—rather than just headline off-peak rates.
Heat pump tariff types: what to compare
When you’re comparing UK electricity tariffs for a heat pump, look beyond the cheapest off-peak unit rate. Use the checklist below and compare like-for-like.
| Tariff feature | Why it matters for heat pumps | What to check |
|---|---|---|
| Peak unit rate | Heat pumps often run through cold daytime periods; expensive peaks can raise overall cost. | Compare peak kWh price to your current single-rate price. |
| Off-peak window(s) | Savings depend on whether you can actually use power cheaply (hot water, pre-heat, battery charging). | Check the exact hours and whether they change seasonally. |
| Standing charge | A higher standing charge can wipe out unit-rate savings, especially in summer. | Multiply daily standing charge by 365 and include it in comparisons. |
| Meter requirements | Many TOU tariffs require a working smart meter and half-hourly readings. | Confirm eligibility and whether you can opt out later. |
| Exit fees / fix length | Heat pump performance varies by season; flexibility can help if the tariff doesn’t suit winter usage. | Check term length, exit fees, and what happens at the end of the fix. |
| Customer service & billing | Multi-rate billing can be confusing; accurate bills matter for tracking savings. | Review how rates appear on bills and whether the supplier supports data access. |
Want to skip the manual checking? Use the EnergyPlus form to compare whole-of-market options for your postcode and meter type.
Eligibility: can you get a heat pump-friendly tariff?
Usually needed
- Domestic electricity supply (home address).
- Smart meter for most TOU tariffs (supplier-specific).
- Permission to share half-hourly readings where required.
- Ability to schedule heating/hot water or shift usage.
Also worth checking
- Whether your heat pump system has a cylinder for off-peak hot water heating.
- If you’re on an older multi-rate setup (e.g. Economy 7), whether switching affects it.
- Any restrictions on export/solar/battery setups (tariff-specific).
- How your supplier handles rate changes and billing on TOU plans.
If you don’t have a smart meter, you can still compare single-rate tariffs and some multi-rate options. Start with the tariff comparison form and we’ll guide you.
Regional considerations across the UK
Electricity prices and standing charges can vary by region due to network costs. That means a tariff that looks strong in one area may be less competitive elsewhere. For heat pump households, those differences can be amplified because your electricity use is typically higher than a gas-heated home.
Standing charges
Regional standing charges can meaningfully affect annual costs—especially if you’re comparing tariffs with similar unit rates.
Off-peak value
If your region already has a lower single-rate price, TOU savings may be smaller unless you can shift a lot of usage.
Property & climate
Colder areas and less insulated homes typically use more electricity for heating—making tariff choice even more important.
Common mistakes when choosing a heat pump electricity tariff
Comparing only the cheapest off-peak rate
A low overnight price looks great, but if your peak rate is high and your heat pump runs mostly during the day, total annual cost can increase.
Ignoring the standing charge
Standing charges add up. Always include them when estimating annual cost—especially if the tariff advertises “cheap rates” but has a higher daily charge.
Assuming a heat pump must run at night
Many homes need heat in the morning and evening. If your property can’t retain heat, forcing too much heating into off-peak hours can reduce comfort.
Not checking smart meter requirements
Some TOU tariffs require half-hourly data. If your smart meter isn’t communicating reliably, billing and savings tracking can be frustrating.
If you want a quick, practical answer, use the comparison form and we’ll show tariffs that fit your home setup and meter type.
FAQs: heat pump electricity tariffs in the UK
Are heat pump tariffs always cheaper?
No. They can be cheaper if a meaningful share of your electricity use falls into the lower-rate periods and the standing charge/peak rates don’t outweigh the benefit. A quick whole-of-market comparison is the best way to confirm.
Do I need a smart meter for a heat pump tariff?
Often, yes—especially for time-of-use tariffs that rely on half-hourly readings. Some multi-rate tariffs may be available without one, but availability varies by supplier and region.
Is Economy 7 good for heat pumps?
It can be, particularly if you can heat hot water overnight and your home retains warmth. But modern time-of-use tariffs may offer different (sometimes better) structures. Compare total annual cost rather than relying on the label.
Will a heat pump increase my electricity bill?
If you’re replacing gas, electricity use will increase, but your total heating cost can still be competitive depending on your heat pump efficiency and tariff. The right electricity tariff helps keep running costs down.
Does underfloor heating make TOU tariffs more effective?
Often yes. Underfloor heating can work well at lower flow temperatures and can provide steadier heat, which may make load shifting easier. Your property’s insulation still plays a major role.
Can I use an EV tariff even if I don’t have an EV?
Some EV-focused tariffs may be available without an EV, while others require one. If you can access it and your usage fits the off-peak window, it may suit a heat pump household. Always check eligibility and compare the peak rate and standing charge.
How quickly can I switch electricity tariff in the UK?
Switching timelines vary by supplier, but many switches complete within a few working days. Your supply usually continues without interruption; it’s mainly an administrative change.
Why homeowners use EnergyPlus
Whole-of-market comparisons
Compare across a wide range of UK home energy tariffs, including options that may suit heat pump usage patterns.
Tariff fit, not just headlines
We focus on total cost drivers: peak/off-peak rates, standing charges, and realistic usage timing.
Straightforward switching support
Clear next steps and help when you’re ready to move to a tariff that better matches your home’s heating setup.
“We didn’t realise the peak rate was the real cost driver. Comparing properly helped us choose a tariff that actually matched when our heat pump runs.” — Homeowner, South East
“The whole-of-market view made it easy to sanity-check our options. We ended up with a better fit for hot water scheduling.” — Homeowner, Scotland
Ready to check your postcode? Compare heat pump-friendly tariffs.
Find out if a heat pump tariff is cheaper for your home
Get a tailored comparison based on your postcode and meter type. It’s the fastest way to see whether time-of-use rates will lower your heat pump running costs.
- Whole-of-market home energy comparison
- See tariff options that match your setup
- Clear next steps to switch if you choose to
Start your comparison
Back to Guides & FAQs