Switch to a cheaper heat pump tariff in the UK
Compare whole-of-market electricity tariffs that can suit heat pumps (including time-of-use options) and switch with confidence. We explain what “heat pump tariffs” really mean, what to check on your meter, and how to avoid costly mistakes.
- See tariffs that may better match heat pump running patterns (estimated costs vary)
- Know what matters: meter type, payment method, exit fees, and usage split
- Get a quote in minutes — no obligation
Estimates depend on your electricity use, heat pump settings, meter type, and tariff terms. Always check unit rates, standing charge, and any exit fees before you switch.
Fast answer: switch to a cheaper heat pump tariff UK
To switch to a cheaper heat pump tariff UK, compare electricity tariffs by your meter type (smart or traditional) and your day/night usage split—because there’s usually no single “heat pump tariff” in the UK. The best option is the tariff with the lowest estimated annual cost for how you run your heat pump, including standing charge and any exit fees.
Key takeaway 1
Focus on p/kWh unit rates and the standing charge. A low night rate can be offset by a high day rate if your heat pump runs across the day (which many do).
Key takeaway 2
If you’re considering time-of-use (off-peak) pricing, you’ll typically need a smart meter and you must be able to shift meaningful usage into the cheap windows.
Key takeaway 3
Check contract terms: exit fees, price changes, and any requirements (e.g., direct debit). For heat pumps, stability can matter as much as the headline rate.
Important: A “heat pump tariff” is usually just a normal domestic electricity tariff that may suit heat pumps because of its price structure. Suppliers rarely verify you have a heat pump, and savings are not guaranteed.
Compare heat pump-friendly tariffs (whole of market)
Use the quote form to see options that may suit heat pump households, including fixed and variable tariffs and (where available) time-of-use tariffs. We’ll ask for your postcode and a few details so estimates reflect your region and meter type.
What you’ll need (2 minutes)
- Your postcode (regional price differences apply)
- Whether you have a smart meter (helps unlock time-of-use)
- Your payment method (direct debit vs prepay can differ)
- A sense of when your heat pump runs most (overnight vs daytime)
If you don’t have exact kWh figures, you can still compare. We’ll show estimated annual costs, but your real bill will depend on weather, thermostat settings, hot water schedules, and how well your home is insulated.
Get your quote
No obligation. We use your details to return tariff options and contact you about your quote if requested.
How switching works for heat pump homes (UK)
- Compare using your meter and usage pattern: single-rate, Economy 7, or time-of-use.
- Check the full price structure: unit rates, standing charge, and any peak/off-peak windows.
- Confirm contract details: fixed term length, exit fees, and how prices can change.
- Switch: in most cases you don’t need an engineer visit; your supply changes remotely. If you need a smart meter for a tariff, your supplier may arrange an appointment.
Cooling-off: domestic energy contracts usually have a cooling-off period when sold at a distance, but exact rights depend on how you sign up and the supplier’s terms. If in doubt, check guidance from Citizens Advice on energy supply.
Heat pump tariff types compared
Heat pumps can run for long periods at low power, and many homes use them most during colder months. That means your “best” tariff depends less on the label and more on when you use electricity.
| Tariff type | Who it can suit | Potential upside | Watch-outs (heat pump specific) |
|---|---|---|---|
| Single-rate (flat unit rate) | Most homes; simplest option | Predictable costs; easy to compare | If your heat pump could shift load to off-peak, you may miss savings |
| Fixed (usually single-rate) | Those who want price certainty | Unit rates/standing charge fixed for a term (supplier terms apply) | Exit fees may apply; don’t pay extra for “certainty” if rates are uncompetitive |
| Variable (incl. standard variable) | Short-term flexibility | Often no exit fee; easier to move again | Rates can change; winter heat pump use can make you more exposed |
| Economy 7 (day/night rates) | Homes with meaningful overnight use | Cheaper night units can help if you heat water overnight or pre-heat | Day rate can be high; many heat pumps run through the day—so savings depend on your split |
| Time-of-use (smart meter pricing windows) | Homes able to shift usage (hot water, appliances, possibly pre-heating) | Very low off-peak prices in some windows (tariff-specific) | Peak windows can be expensive; if you can’t shift, bills may rise. Typically requires a working smart meter |
Quick decision checklist
- A time-of-use tariff may suit you if:
- You have a smart meter and can shift a chunk of electricity (e.g., hot water cycles, laundry/dishwasher, some pre-heating) into off-peak windows.
- A single-rate fixed tariff may suit you if:
- Your heat pump runs steadily across the day, you value predictability, and the unit rate + standing charge are competitive.
- Economy 7 may suit you if:
- A large share of your usage is genuinely overnight (check your meter readings or smart meter app for the split).
Two realistic heat pump scenarios (with numbers)
These examples are illustrative to show why “cheap” depends on your usage pattern. Prices are rounded and not a quote.
Scenario A (daytime heating-heavy home)
- Annual electricity use: 9,000 kWh (heat pump + household)
- Off-peak share: 20% (1,800 kWh off-peak / 7,200 kWh peak)
- Standing charge: 55p/day (≈£201/yr)
Tariff 1 (single-rate): 25p/kWh ⇒ 9,000×£0.25 + £201 ≈ £2,451/yr
Tariff 2 (time-of-use): 40p peak / 12p off-peak ⇒ (7,200×£0.40) + (1,800×£0.12) + £201 ≈ £3,297/yr
Even with a very cheap off-peak rate, a high peak rate can cost more if your heat pump runs mostly in peak hours.
Scenario B (good load shifting, smart controls)
- Annual electricity use: 9,000 kWh
- Off-peak share: 55% (4,950 kWh off-peak / 4,050 kWh peak)
- Standing charge: 55p/day (≈£201/yr)
Tariff 1 (single-rate): 25p/kWh ⇒ ≈ £2,451/yr
Tariff 2 (time-of-use): 30p peak / 12p off-peak ⇒ (4,050×£0.30) + (4,950×£0.12) + £201 ≈ £2,011/yr
If you can move hot water and some heating demand into off-peak, time-of-use can reduce the estimated annual cost.
Assumptions: examples ignore VAT differences (domestic is usually 5%), discounts, and supplier-specific rules. Your actual off-peak windows and rates may be different. Standing charges vary by region and meter type.
Costs, exclusions and common heat pump tariff pitfalls
Switching can be straightforward, but heat pump homes are more sensitive to price structure. These are the issues we see most often.
1) A high standing charge can wipe out gains
Heat pumps increase electricity usage, so the unit rate is important — but don’t ignore the standing charge. Always compare the estimated annual cost, not just p/kWh.
2) Off-peak tariffs only help if you can shift demand
Many heat pumps run through daytime in cold weather. If your home is in at peak times, or your heat pump must maintain a constant temperature, a tariff with expensive peak rates may increase bills.
3) Meter type can limit tariff availability
Time-of-use tariffs typically require a smart meter. Economy 7 requires a compatible dual-rate meter configuration. If you’re not sure, check a recent bill or ask your supplier.
4) Exit fees and fixed terms
Some fixed tariffs include exit fees. If you plan to switch again soon, factor the exit fee into your comparison (it can outweigh a small annual saving).
5) Prepayment vs direct debit
Prepayment customers may see different rates and fewer options. If you can switch payment method, compare both — but only choose what you can comfortably manage.
6) Don’t confuse heating performance with tariff choice
A tariff won’t make a heat pump “more efficient”. Efficiency depends on system design, flow temperature, controls, and insulation. A good tariff simply prices your kWh more favourably for your usage pattern.
Tip: If you have a smart meter, review a month of half-hourly usage (if available via your supplier) to estimate what percentage of your electricity falls into off-peak windows. That percentage is the key input for deciding whether time-of-use is likely to help.
What about gas?
Most heat pump homes are primarily electricity-powered for heating, so this guide focuses on electricity tariffs. If you still have a gas supply (e.g., for cooking), compare it separately — but be aware dual-fuel “discounts” are not always cheaper overall.
FAQs
Is there a specific “heat pump tariff” in the UK?
Usually not. Most suppliers offer standard domestic electricity tariffs (fixed, variable, Economy 7, time-of-use). Some are marketed as suitable for low-carbon heating, but your eligibility and savings depend on your meter type and when you use electricity.
Do I need a smart meter to get a cheaper heat pump tariff?
Not always. You can switch to a cheaper single-rate or fixed tariff without a smart meter. But if you want time-of-use pricing (specific off-peak windows and rates), a smart meter is typically required.
Is Economy 7 good for heat pumps?
It can be, but only if a significant share of your electricity use is overnight. Many heat pumps run mainly during daytime in winter, so a high day rate can outweigh night savings. The deciding factor is your actual day/night usage split.
Will switching tariffs affect my heat pump warranty or servicing?
Switching electricity supplier or tariff should not affect your heat pump warranty. Warranties are normally tied to the equipment, installation, and servicing schedule — not your energy tariff. If in doubt, check your installer’s paperwork.
Can I switch if I’m on prepayment?
Often yes, but your choice may be more limited and prices can differ from direct debit tariffs. You’ll need to pass supplier checks and meet any requirements for the tariff. If you’re in debt to your current supplier, switching may be restricted.
How do I know whether my heat pump runs mostly in peak hours?
If you have a smart meter, check your supplier’s usage view (often half-hourly). Otherwise, look at when your heating and hot water are scheduled, when you’re at home, and whether the system maintains a steady temperature all day. A week of observations in cold weather is often revealing.
Are exit fees common on cheaper tariffs?
They can be, especially on fixed deals. Exit fees vary by supplier and product. Always check the tariff information before switching and factor any exit fee into your savings calculation.
What’s the safest way to compare tariffs for a heat pump home?
Compare using your real (or best-estimate) annual kWh and, if relevant, your off-peak percentage. Then check: unit rates for each time band, standing charge, contract length, exit fees, and whether a smart meter is required. Choose the lowest estimated annual cost that matches how you actually live.
Trust, methodology and sources
Editorial accountability
- Written by: EnergyPlus Editorial Team
- Reviewed by: Energy Specialist
- Last updated: June 2026
How we assess “cheaper” for heat pump tariffs
We treat a tariff as “cheaper” only when it produces a lower estimated annual cost for the household’s electricity use pattern, including the standing charge. For heat pump homes, we emphasise:
- Usage pattern fit: single-rate vs Economy 7 vs time-of-use windows
- Meter compatibility: whether a tariff requires a smart meter or dual-rate setup
- Total cost: unit rate(s) + standing charge (and exit fees where relevant)
- Risk & stability: fixed vs variable pricing exposure (especially over winter)
Limitations: We can’t know your exact heat pump COP, insulation quality, or comfort preferences. Time-of-use tariffs also vary widely by supplier, region, and time bands. Always confirm the tariff’s rates and terms before agreeing to switch.
UK sources we rely on
- Ofgem: energy advice for households
- Citizens Advice: energy (billing, switching, complaints)
- GOV.UK: energy guidance
We link to independent UK regulators and public guidance. Supplier prices and product features change frequently, so always check the tariff information and your contract terms.
Ready to check if you can switch to a cheaper tariff?
Get a whole-of-market comparison tailored to your postcode and meter type. You’ll see options that may suit heat pump running patterns, with clear estimates and tariff terms.
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