Is a heat pump electricity tariff cheaper in the UK?
A specialist heat pump electricity tariff can cut running costs versus a standard single-rate plan — but only if a real share of your usage lands in the cheaper off-peak hours. With the July 2026 (Q3) price cap setting the standard electricity unit rate at 26.11p/kWh, the best reduced-rate heat pump deals can undercut that meaningfully at night, while peak rates often sit above the cap. Compare whole-of-market UK tariffs and see what is genuinely cheaper for your home.
- Check whether a heat pump tariff beats the July 2026 cap rate of 26.11p/kWh for your usage
- Understand time-of-use pricing, off-peak windows and when they actually help
- Whole-of-market comparison for UK home energy (not business)
Current for June 2026 and built around the July 2026 (Q3) Ofgem price cap. Have a recent bill handy for the most accurate result.
Quick answer: is a heat pump tariff cheaper?
It can be — if you can shift demand. Under the July 2026 (Q3) Ofgem price cap, a standard variable electricity tariff is capped at 26.11p/kWh with a 57.19p/day standing charge. The leading reduced-rate heat pump and time-of-use tariffs in mid-2026 offer off-peak electricity well below that — commonly in the high-teens to low-twenties p/kWh — while charging an above-cap peak rate for the rest of the day.
So a heat pump tariff is usually cheaper when a meaningful share of your electricity (hot water, pre-heating, EV or battery charging) runs in the off-peak window, and the standing charge plus peak rate don’t cancel out the saving. If your heat pump mostly runs during peak daytime hours and you can’t move usage, a flat single-rate tariff at or just below the cap can work out cheaper.
The only reliable test is to model your own annual kWh against both tariff shapes. See the worked example below, or get a personalised comparison.
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 choose can move your annual running costs by hundreds of pounds. Several UK suppliers now offer heat pump-friendly or time-of-use tariffs — including dedicated reduced-rate heat pump plans and the popular “Cosy”-style multi-window deals — with cheaper off-peak rates designed for electrified heating. A low off-peak rate can still be offset by a higher peak rate or standing charge, so the headline number rarely tells the full story.
EnergyPlus compares whole-of-market UK home energy tariffs so you can check whether a heat pump tariff is actually cheaper for your usage pattern against the July 2026 cap. If you already have a working smart meter, you are typically eligible for the widest range of time-of-use options. You can also compare standard tariffs or read about the energy price cap first.
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) your hot water schedule, (3) whether you have an EV or home 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 — priced against the current July 2026 cap.
What is a heat pump electricity tariff?
In the UK, “heat pump electricity tariff” describes an electricity plan built to suit heat pump households. In practice it usually means one of the following:
Reduced-rate heat pump tariffs
Some suppliers offer a discounted unit rate on the electricity your heat pump uses, or a lower whole-home rate for verified heat pump owners (often requiring an MCS-certified install). Designed to make electrified heating cost-competitive with gas.
Time-of-use (TOU) tariffs
Cheaper electricity in set off-peak windows — overnight, and sometimes a midday or early-afternoon “Cosy”-style window too. Best if you can shift hot water and some space heating into the low-rate periods.
Standard single-rate tariffs
One unit rate all day, at or below the July 2026 cap of 26.11p/kWh. Sometimes still the cheapest overall if your heat pump runs mostly during the daytime and you can’t shift demand.
Important: A tariff marketed for EVs can also work well for a heat pump, but only if your household can actually use the cheaper periods. Always compare using your expected usage profile, not the advertised off-peak rate alone.
How the July 2026 price cap sets the benchmark
Ofgem confirmed the July–September 2026 (Q3) price cap on 27 May 2026, and it took effect on 1 July 2026. For a typical direct-debit household in Great Britain the capped rates are:
| July 2026 (Q3) cap | Unit rate | Standing charge |
|---|---|---|
| Electricity | 26.11p/kWh | 57.19p/day |
| Gas | 7.33p/kWh | 29.04p/day |
These figures are the yardstick for judging any heat pump tariff. A reduced-rate or time-of-use deal is only “cheaper” if your blended (weighted-average) price per kWh — across all your usage and including the standing charge — comes out below the 26.11p/kWh standard rate. The cap is reviewed quarterly, so the October–December 2026 rates are not yet confirmed; treat the July 2026 figures as the current benchmark.
When is a heat pump tariff cheaper than standard electricity?
A heat pump tariff is cheaper when the weighted average price you pay per kWh — reflecting how much electricity you use at each rate, plus the standing charge — ends up below the July 2026 cap rate of 26.11p/kWh on a single-rate plan.
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 off-peak.
- You have a hot water cylinder you can schedule.
- You have an EV or home battery, improving 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.
- A high peak rate (above 26.11p/kWh) plus standing charge outweighs the off-peak saving.
- 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 working smart meter).
The most reliable approach is to compare tariffs using realistic heat pump consumption and timing, rather than assuming any heat pump tariff will automatically be cheaper.
Worked running-cost example (June 2026 figures)
Take a reasonably efficient air source heat pump in a typical home. Suppose annual space-heating and hot-water demand is about 10,000 kWh of heat, and the seasonal efficiency (SCOP) is 3.2. The electricity the heat pump draws is roughly heat demand ÷ SCOP:
10,000 kWh ÷ 3.2 ≈ 3,125 kWh of electricity for heating. Add roughly 2,700 kWh of non-heating electricity (lights, cooking, appliances — the TDCV medium-household figure) for a total of about 5,825 kWh/year.
| Scenario (5,825 kWh/yr) | Unit cost | Standing charge | Indicative annual cost |
|---|---|---|---|
| Standard single-rate at the July 2026 cap | 5,825 × 26.11p ≈ £1,521 | 57.19p × 365 ≈ £209 | ≈ £1,730 |
| Time-of-use, 45% of usage off-peak ~18p off-peak / ~30p peak (illustrative) |
(2,621 × 18p) + (3,204 × 30p) ≈ £472 + £961 = £1,433 | ~57p × 365 ≈ £209 | ≈ £1,642 |
| Time-of-use, only 20% off-peak same rates, less shifting |
(1,165 × 18p) + (4,660 × 30p) ≈ £210 + £1,398 = £1,608 | ~57p × 365 ≈ £209 | ≈ £1,817 |
In this illustration, shifting 45% of usage off-peak saves roughly £90 a year versus the capped single rate — but if you can only move 20% off-peak, the above-cap peak rate makes the time-of-use tariff more expensive by about £90. That swing is the whole point: the same tariff can win or lose depending on your household. The rates above are illustrative, not supplier quotes — run your own postcode and meter type for live numbers.
Heat pump tariff types: what to compare
When 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 against the July 2026 cap.
| Tariff feature | Why it matters for heat pumps | What to check |
|---|---|---|
| Peak unit rate | Heat pumps often run through cold daytime periods; a peak rate above 26.11p/kWh can raise overall cost. | Compare the peak kWh price to the July 2026 cap and your current rate. |
| 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 (Cosy-style tariffs add a midday window). |
| Standing charge | A standing charge above the 57.19p/day cap level can wipe out unit-rate savings, especially in summer. | Multiply the daily standing charge by 365 and include it in every comparison. |
| Meter & MCS requirements | Many TOU and reduced-rate heat pump tariffs require a smart meter, half-hourly readings, and sometimes proof of an MCS-certified heat pump. | Confirm eligibility, MCS evidence, and whether you can opt out later. |
| Exit fees / fix length | Heat pump performance varies by season; flexibility helps 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 comparison to see whole-of-market options for your postcode and meter type.
Eligibility: can you get a heat pump-friendly tariff?
Usually needed
- Domestic electricity supply at your home address.
- A working smart meter for most TOU and reduced-rate heat pump tariffs (supplier-specific).
- Permission to share half-hourly readings where required.
- For some reduced-rate plans, an MCS-certified heat pump and proof of install.
- Ability to schedule heating/hot water or otherwise 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 Economy 7 setup, 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 yet, you can still compare single-rate tariffs and some multi-rate options. Start with the tariff comparison and we’ll guide you.
Compare now and price it against the July 2026 cap
Enter your details to see whole-of-market home electricity tariffs — including heat pump-friendly and time-of-use options — benchmarked against the current 26.11p/kWh cap rate.
Regional considerations across the UK
Electricity unit rates and standing charges vary by region because of network costs, and the July 2026 cap figures are GB averages. A tariff that looks strong in one area may be less competitive elsewhere. For heat pump households the difference is amplified, because your electricity use is typically much higher than a gas-heated home.
Standing charges
Regional standing charges sit either side of the 57.19p/day cap average and can meaningfully affect annual cost — especially when comparing tariffs with similar unit rates.
Off-peak value
If your region already has a lower single-rate price, time-of-use savings may be smaller unless you can shift a lot of usage.
Property & climate
Colder areas and less insulated homes 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 the peak rate sits above the 26.11p/kWh cap and your heat pump runs mostly in the day, your total annual cost can rise.
Ignoring the standing charge
At 57.19p/day the cap standing charge alone is about £209 a year. Always include it when estimating annual cost — especially for tariffs that advertise cheap rates but carry 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 and efficiency.
Not checking smart meter or MCS requirements
Some TOU and reduced-rate tariffs require half-hourly data or proof of an MCS heat pump. 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 (June 2026)
Is a heat pump tariff cheaper than a standard tariff under the July 2026 cap?
It can be. The July 2026 (Q3) cap sets a standard electricity rate of 26.11p/kWh with a 57.19p/day standing charge. A reduced-rate or time-of-use heat pump tariff is cheaper only if enough of your usage falls in the cheaper off-peak window to pull your blended price below 26.11p/kWh, after allowing for an above-cap peak rate and the standing charge. A whole-of-market comparison is the fastest way to confirm.
Do I need a smart meter for a heat pump tariff?
Usually yes — especially for time-of-use and reduced-rate heat pump tariffs that rely on half-hourly readings. Some multi-rate tariffs may be available without one, but availability varies by supplier and region.
Do I need an MCS-certified heat pump to qualify?
For some dedicated reduced-rate heat pump tariffs, yes — suppliers may ask for evidence of an MCS-certified installation. Standard time-of-use tariffs that simply suit heat pump use generally only require a working smart meter. Always check the supplier’s specific terms before switching.
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 and Cosy-style tariffs often offer better-structured windows. Compare total annual cost against the July 2026 cap rather than relying on the label.
Will a heat pump increase my electricity bill?
If you’re replacing gas, your electricity use rises, but total heating cost can still be competitive depending on your heat pump’s efficiency (SCOP) and tariff. As the worked example shows, the right electricity tariff — paired with off-peak load shifting — keeps running costs down.
Can I use an EV tariff for my heat pump even without an EV?
Sometimes. Some EV-focused tariffs are 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, the peak rate and the standing charge.
How much could I save with a heat pump tariff?
It depends entirely on how much usage you can move off-peak. In our June 2026 worked example, shifting 45% of a 5,825 kWh annual load to an ~18p off-peak rate saved roughly £90 a year versus the capped single rate — but shifting only 20% made the time-of-use tariff about £90 more expensive. Model your own usage before switching.
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 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 reduced-rate and time-of-use 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 — all benchmarked against the current price cap.
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
Methodology & data: Figures on this page use the Ofgem July–September 2026 (Q3) price cap (electricity 26.11p/kWh, standing charge 57.19p/day), confirmed by Ofgem on 27 May 2026 and in effect from 1 July 2026. Worked examples are illustrative and use typical TDCV usage; they are not supplier quotes. The price cap is reviewed quarterly. Last updated June 2026.
Find out if a heat pump tariff is cheaper for your home
Get a tailored comparison based on your postcode and meter type, priced against the July 2026 cap. It’s the fastest way to see whether time-of-use or reduced-rate tariffs 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
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