Cheapest electricity tariff for home heating in the UK
Find the best-value electricity tariffs for electric heating (including heat pumps, storage heaters and panel heaters) based on your meter type, usage pattern and postcode. We’ll explain what “cheapest” really means and help you compare safely.
- UK-focused guidance for heat pumps, storage heaters and all-electric homes
- Clear trade-offs: unit rate vs standing charge vs off-peak windows
- Eligibility checks: smart meter, Economy 7, time-of-use tariffs, exit fees
Estimates only. Availability, rates and off-peak windows vary by supplier, region, meter type and credit status. Always check the tariff information label before switching.
Fast answer: what’s usually cheapest for electric heating?
There isn’t one single “cheapest electricity tariff for home heating” in the UK, because the best value depends on when you use most of your electricity and what meter you have. In practice, the cheapest option tends to fall into one of these patterns:
All-day heating (panel heaters, all-electric homes)
Often best with a low single-rate unit price (even if the standing charge is slightly higher). Time-of-use can cost more if you can’t shift usage.
Overnight-heavy heating (storage heaters)
Often best with an Economy 7-style tariff (cheap night rate, higher day rate). Works best when your storage heaters and hot water charge overnight.
Heat pumps (high usage, but flexible)
You may benefit from a time-of-use tariff if you can pre-heat/pre-heat hot water during cheaper windows. If not, a strong single-rate tariff may be safer.
Key takeaway: “Cheapest” = lowest annual cost for your real usage, not just the lowest unit rate you see in an advert. Standing charge, off-peak windows, meter compatibility, and exit fees can change the result.
Before you compare, check these 4 things
- Meter type: single-rate, Economy 7/10, or smart meter (half-hourly capable)
- Heating system: heat pump, storage heaters, panel heaters, electric boiler
- Usage pattern: can you move demand overnight or into set cheap periods?
- Constraints: renting (permission to change meter?), prepay, debt, or fixed-term exit fees
Two quick rules of thumb
- If you can’t shift usage
- Prioritise a competitive single-rate tariff with manageable standing charge and no harsh exit fees.
- If you can shift a lot of usage off-peak
- Check Economy 7 / time-of-use options, but confirm the off-peak times and your day rate.
Compare tariffs for electric heating (whole-of-market approach)
Use the form to get a tailored comparison for your postcode, meter type and heating setup. We’ll look at tariffs that fit your inputs (including single-rate, Economy 7 and time-of-use where compatible) and show estimated annual costs.
Good to know: If you’re on a legacy multi-rate meter (e.g. Economy 10) or have storage heaters, choosing the wrong tariff can increase costs. If you’re unsure, tell us what you have and we’ll highlight compatible options.
What you’ll need
- Postcode (to price your region and network costs)
- Rough annual usage (kWh) or your latest bill (we can work from either)
- Meter info (smart meter / Economy 7 / prepay) if known
Prefer to self-check first?
Jump to the comparison table and checklist to see which tariff types typically suit each heating system.
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How to choose the cheapest electricity tariff for heating (step-by-step)
- Confirm your meter and rates. Check your bill for “single rate” or two rates (day/night). If you have Economy 7, the day rate can be much higher—don’t compare on night rate alone.
- Work out when your heating loads happen. Storage heaters usually charge overnight. Heat pumps can be steady across the day (more in cold weather). Panel heaters often spike in mornings/evenings.
- Compare on estimated annual cost, not unit rate. Standing charge is paid every day. It can outweigh a slightly cheaper unit rate, especially for low-to-medium users.
- Check tariff rules and exit fees. Fixed deals may include exit fees. Time-of-use tariffs can require a smart meter and may have specific cheap periods.
- Check you can (and want to) change meter setup. Some homes with storage heaters rely on multi-rate wiring/controls. Switching to single-rate may remove off-peak charging benefits unless your setup is changed.
Tariff types compared (what usually works for home heating)
This table is designed for decision-making (not marketing). “Cheapest” depends on your usage pattern and whether your home can access off-peak periods.
| Tariff type | Best for | Potential upside | Common downside | Typical requirements |
|---|---|---|---|---|
| Single-rate (standard) | Panel heaters, electric boilers, heat pumps if you can’t shift load | Simple pricing; easier comparisons; fewer surprises | No cheap off-peak period for overnight heating | Any meter type (including non-smart) |
| Economy 7 (2-rate) | Storage heaters; hot water cylinders charging overnight | Cheaper night rate can reduce heating costs if most kWh are overnight | Day rate often higher; can be costly if you use lots of daytime electricity | Economy 7 meter (or smart set to multi-rate) + correct off-peak times |
| Time-of-use (smart tariffs) | Heat pumps + household flexibility; EV owners (if applicable) | Deep discounts in set windows (varies); can reward active shifting | Peak rates can be expensive; complexity; not ideal if you can’t shift | Smart meter; supplier eligibility; sometimes app-based control |
| Variable/standard (SVT) | Short-term stopgap; if you need flexibility or are mid-change | No exit fees; easy to leave | Often not the lowest estimated annual cost vs competitive fixed deals | No special requirements; rates can change (price cap driven) |
Decision checklist: it likely suits you if…
- Single-rate: your heating is spread through the day or you work from home
- Economy 7: you can reliably use a large share of kWh overnight (storage heaters/hot water)
- Time-of-use: you’re comfortable managing usage windows and you have a smart meter
- Fixed deal: you want price certainty and accept possible exit fees
It may not suit you if…
- Economy 7: you use a lot of daytime electricity (cooking, home working, tumble dryer)
- Time-of-use: you can’t avoid peak periods (school runs, evenings at home)
- Any fixed deal: you’re likely to move home soon and want to avoid exit fees
- Switching meter type: your storage heater controls depend on a multi-rate setup
Important: Economy 7 off-peak times vary by region and meter setup (and can shift with clocks). Always confirm the exact hours with your supplier before relying on overnight charging.
Costs, exclusions and common pitfalls (electric heating)
Standing charge can dominate for low users
If you heat with electricity but keep overall usage low (e.g. small flat), a tariff with a low unit rate but high standing charge may not be cheapest overall. Compare on estimated annual cost.
Economy 7: day rate “shock”
Economy 7 can be excellent for storage heaters, but the daytime unit rate is often significantly higher. If your home heating actually runs during the day (or you’re home a lot), you can end up paying more.
Time-of-use tariffs: cheap windows are not “free heating”
Off-peak windows can be narrow and peak rates can be high. If your heat pump needs to work hardest during peak times (cold evenings), the headline cheap rate may not translate to the cheapest annual bill.
Exit fees and fixed-term limits
Some fixed deals include exit fees. If you might move or change heating system, check the terms first. Your “cheapest” option today might be expensive to leave.
Scenario 1 (worked example): storage heaters + Economy 7
This is an illustrative estimate to show how day/night split changes the outcome. Rates vary by region and supplier.
- Annual electricity use: 8,000 kWh
- Usage split: 60% night (4,800 kWh) / 40% day (3,200 kWh)
- Example Economy 7 rates: day 30p/kWh, night 14p/kWh, standing charge 60p/day
Estimated annual cost: (3,200×£0.30) + (4,800×£0.14) + (365×£0.60) = £1,852
If your night share dropped to 35%, Economy 7 could become less competitive—because more kWh are charged at the higher day rate.
Scenario 2 (worked example): heat pump + single-rate vs time-of-use
Heat pump homes often use more kWh but can sometimes shift hot water and a portion of space heating to cheaper periods.
- Annual electricity use: 6,000 kWh
- Single-rate example: 25p/kWh, standing charge 55p/day
- Time-of-use example: 30% at 15p/kWh (1,800 kWh), 70% at 28p/kWh (4,200 kWh), standing charge 55p/day
Single-rate estimated annual cost: (6,000×£0.25) + (365×£0.55) = £1,701
Time-of-use estimated annual cost: (1,800×£0.15) + (4,200×£0.28) + (365×£0.55) = £1,647
Here, time-of-use wins because 30% shifts into a cheap window. If only 10% shifted, the time-of-use option may cost more than single-rate.
What we didn’t include in the scenarios: discounts, cashbacks, regional network variation, paper billing charges, smart tariff add-ons, or any future price changes. Treat examples as guidance, not predictions.
FAQs: cheapest electricity tariffs for heating (UK)
Is Economy 7 always cheaper for electric heating?
No. It’s often cheaper only if a large share of your electricity use is overnight (commonly storage heaters and hot water charging). If you use lots of electricity during the day, a single-rate tariff may be cheaper overall.
Do I need a smart meter for time-of-use tariffs?
Usually, yes. Most time-of-use tariffs rely on half-hourly readings from a smart meter. Some suppliers also have eligibility rules (e.g. compatible meter configuration or account setup).
Can tenants switch electricity tariff if they use electric heating?
In many cases, yes—if you pay the electricity bill and your name is on the account. If switching would require a meter change (e.g. Economy 7 to single-rate) you may need landlord permission, and you should consider how it affects storage heater controls.
What’s more important: unit rate or standing charge?
Both. Heavy electric-heating homes often care most about unit rate because kWh usage is high. But standing charge can still be significant (paid every day) and can make a “cheap unit rate” tariff worse for lower users.
Will switching tariff change how my storage heaters work?
It can. Storage heaters usually depend on an overnight off-peak period. If you move from Economy 7 to single-rate (or to a tariff with different off-peak hours), your heaters may charge at different times or cost more to run. Always confirm compatibility before switching.
Are “no standing charge” electricity tariffs good for electric heating?
Be cautious. If a tariff has no standing charge, the unit rates can be higher to compensate. Electric-heating homes usually use a lot of kWh, so higher unit rates may outweigh the benefit. Compare the estimated annual cost using your real usage.
Can I get a cheap tariff if I have a prepayment meter?
You can still compare, but tariff choice may be narrower and prices can differ from direct debit options. If you’re able to switch payment method or move to smart prepay, more deals may be available—subject to supplier checks.
How do I find my Economy 7 off-peak times?
Check your bill or online account, and confirm with your supplier. Off-peak hours vary by region and meter setup, and they can be affected by clock changes. Don’t assume the off-peak period is identical to your neighbour’s.
If I have a heat pump, should I always pick the cheapest unit rate?
Not always. Heat pumps can run at many times of day, and comfort matters. A very low off-peak rate may be paired with a high peak rate. If your home can’t shift enough heating/hot water into cheaper windows, a stable single-rate tariff can be the safer “cheapest overall” option.
Trust, methodology and sources
Page credentials
- Written by
- EnergyPlus Editorial Team
- Reviewed by
- Energy Specialist
- Last updated
- April 2026
How we assess “cheapest” for electric heating
We focus on estimated annual cost for a household, because that’s what you pay over time. For electric-heating homes, we also prioritise meter compatibility and usage timing (day/night or specific time windows).
- Inputs that matter: postcode/region, payment method, meter type (single/E7/smart/prepay), usage (kWh), and (where relevant) day/night split.
- What we compare: unit rates, standing charges, tariff type (single vs multi-rate vs time-of-use), fixed vs variable terms, and known exit fees (where published).
- What we don’t assume: guaranteed savings, identical availability across the UK, or that you can change your meter configuration without constraints.
Limitations: Tariffs can change, and some suppliers restrict smart/time-of-use deals to specific meter setups. Always check the Tariff Information Label, off-peak times, and any exit fees before you switch.
Helpful UK sources
- Ofgem (UK energy regulator) — guidance on tariffs, switching and consumer protections
- Citizens Advice: energy — practical help with billing, switching and complaints
- GOV.UK: energy — official information on home energy support and programmes
Ready to find the cheapest tariff for your electric heating?
Get a tailored comparison for your postcode and meter type, with clear notes on eligibility, off-peak timings and any key terms to check.
We aim to be accurate and transparent. Your final price depends on supplier terms, meter details and usage. Always check tariff documents before agreeing to switch.
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