Cheapest tariff for electric storage heaters in the UK (what to choose)

Storage heaters can be cheap to run on the right meter and tariff. This guide explains what usually works best (Economy 7 / single-rate / smart time-of-use), what you’re eligible for, and how to compare safely.

  • Find out whether an off-peak tariff is actually cheaper for your usage
  • Understand Economy 7 vs single-rate vs smart time-of-use (with examples)
  • Compare whole-of-market options with clear eligibility checks (meter, region, payment type)
Get your storage-heater tariff quote See the best tariff type for you

Estimates only. Cheapest option depends on your meter, off-peak hours, usage split, region, and payment method. Always check your tariff information label and any exit fees.

Fast answer: the “cheapest” tariff for storage heaters is usually the one that matches your off‑peak usage

Most UK homes with electric storage heaters get the best value from Economy 7 (two-rate) if a large share of their electricity is used in the off‑peak window (often overnight) to charge the heaters. If you can’t reliably shift usage, a single-rate tariff can be cheaper overall, even if the day rate looks higher.

Key point: Don’t shop on the off‑peak unit rate alone. Storage heaters often need a higher day rate on Economy 7, and standing charges vary. The cheapest tariff depends on your meter type, off‑peak hours, and your day vs night split.

Key takeaways (UK-specific)

  • If you already have an Economy 7 meter, start by checking whether at least ~35–45% of your usage is off‑peak. Below that, a single-rate tariff may win.
  • If you don’t have an Economy 7 or smart meter, you may not be able to access the cheapest time-of-use deals without a meter change.
  • Off-peak hours aren’t the same everywhere and can vary by region, supplier, and meter set-up. Always confirm your exact times.
  • Paying by Direct Debit typically unlocks lower prices than pay-as-you-go (prepayment), but availability varies by supplier and region.
  • Exit fees can make switching mid-contract poor value—check before you switch.

Compare whole-of-market storage-heater friendly tariffs

Use the form to get a tailored comparison based on your postcode and contact details. We’ll help you check whether Economy 7, a single-rate plan, or a smart time‑of‑use tariff is likely to suit your home.

What you’ll need: your postcode, and ideally a recent electricity bill showing whether you’re on single-rate or two-rate (Economy 7), plus your payment method (Direct Debit / prepayment).

Before you switch: 3 quick checks

1) What meter do you have?
Economy 7 and other time-of-use tariffs require a compatible meter setup. If you have a smart meter, you may have more options.
2) What are your off‑peak hours?
Off‑peak is commonly ~7 hours overnight, but exact times can differ (and may shift with BST/GMT depending on meter programming).
3) How much can you shift to off‑peak?
Storage heaters are a good match because charging is typically overnight. The more of your total electricity that’s off‑peak, the more likely Economy 7 helps.

Get a quote (no obligation)

We use your postcode to show tariffs available in your region and network area.

If you’d like help confirming your meter type or off‑peak hours, a callback can be useful.

No guaranteed savings. We’ll show estimated costs based on the details available.

Tenant? You can usually switch supplier if you pay the bills, but check your tenancy terms and ensure any meter changes are agreed where needed.

Tariff types for storage heaters: what’s usually cheapest (and when)

There isn’t one universal “cheapest tariff” for electric storage heaters. The best choice depends on your usage split (day vs off‑peak), your meter, and whether you can control when the heaters charge.

Tariff type Best for Watch-outs Meter/eligibility notes
Economy 7 (two-rate) Homes that can put a large share of electricity into off‑peak (storage heater charging overnight; EV charging; timers). Day rate can be materially higher; if your off‑peak share is low, total cost can rise. Off‑peak times vary. Needs a two-rate meter (often smart or legacy E7). Some suppliers restrict availability by region/payment type.
Single-rate (flat rate) Households that use a lot during the day, can’t reliably shift usage, or have storage heaters that aren’t charging effectively overnight. Can be more expensive than E7 if you could shift more to off‑peak. Standing charges still vary widely. Works with most meters. If you have an E7 meter, you can often move to single-rate (may require meter configuration change).
Smart time-of-use (ToU) Homes with a smart meter that can schedule charging/heating. Potential fit if you can shift usage into cheap windows beyond a single overnight block. Prices can change by time/day; “peak” rates can be high. Not ideal if you can’t control when you use electricity. Requires a working smart meter and supplier support. Not available everywhere; check region and payment method.

Decision checklist: who Economy 7 suits (and who it doesn’t)

Economy 7 is more likely to suit you if…

  • Your home relies on storage heaters and you charge them overnight.
  • You can run hot water immersion, washing, or EV charging in off‑peak hours.
  • You can confirm your off‑peak times and your household routine fits them.
  • You’re comfortable using timers/boost controls to avoid daytime top-ups.

Economy 7 may be poor value if…

  • You’re in most of the day and use lots of electric heating/boost during peak times.
  • Your storage heaters are old/undersized and don’t hold heat through the day.
  • Your off‑peak share is low (often below ~35–45% of total electricity).
  • You can’t access E7/ToU due to meter limitations or supplier restrictions.

Two realistic cost scenarios (with numbers you can sanity-check)

These are illustrative estimates to show how the “cheapest tariff” flips depending on your off‑peak usage. Actual prices vary by supplier, region, and time.

Assumptions for both scenarios (example only): Standing charge ignored to keep the comparison simple (it can change results). Single-rate unit rate = 27p/kWh. Economy 7: day rate = 33p/kWh, night rate = 12p/kWh. Annual usage = 4,500 kWh.

Scenario A: Storage heaters charging overnight (60% off‑peak)

  • Off‑peak: 2,700 kWh × 12p = £324
  • Day: 1,800 kWh × 33p = £594
  • Economy 7 estimate: £918/year (units only)
  • Single-rate estimate: 4,500 kWh × 27p = £1,215/year (units only)

What it shows: With a high off‑peak share, Economy 7 can be materially cheaper on unit costs.

Scenario B: Low off‑peak share (20% off‑peak)

  • Off‑peak: 900 kWh × 12p = £108
  • Day: 3,600 kWh × 33p = £1,188
  • Economy 7 estimate: £1,296/year (units only)
  • Single-rate estimate: £1,215/year (units only)

What it shows: If most usage happens in the day, the higher day rate can outweigh off‑peak savings.

Important: Standing charges (and any price guarantee/discounts) can change the outcome. When comparing, use the supplier’s estimated annual cost for your exact meter and region, not just unit rates.

Costs, exclusions and common pitfalls (storage heater households)

These are the issues most likely to stop a “cheap” tariff being cheap in practice.

1) Off‑peak hours aren’t universal

Economy 7 typically provides ~7 off‑peak hours overnight, but the exact window can vary. If your heaters charge outside that window, you’ll pay the day rate.

2) Old storage heaters can force daytime “boost”

If heaters don’t store enough heat (or you’re out all day and need evening warmth), the daytime boost can be costly on Economy 7.

3) Standing charges and discounts can dominate

A tariff with a slightly better unit rate can still cost more overall if the standing charge is higher. Always compare total annual estimates.

Meter and tariff compatibility

  • Two-rate meters: Some suppliers support them better than others. Switching may require accurate meter readings for both registers.
  • Smart meters: Can unlock more ToU options, but not all smart setups support every tariff type.
  • Complex legacy setups: Some storage-heating systems historically used specialised metering. If you’re unsure, get advice before switching.

Contract terms to check

  • Exit fees: Fixed tariffs may charge to leave early.
  • Price changes: Variable tariffs can change with notice.
  • Payment method: Direct Debit vs prepayment can affect availability and price.
  • Billing and readings: Ensure both day/night reads are recorded correctly to avoid misbilling.

If you’re not sure which meter you have: look at your bill for two unit rates (often labelled “Day/Night” or “Rate 1/Rate 2”) and two readings. If it’s unclear, contact your supplier before switching.

FAQs: cheapest tariffs for electric storage heaters (UK)

Is Economy 7 always the cheapest for storage heaters?

No. It’s often cheapest when a high portion of your electricity use lands in the off‑peak window. If you use lots of power in the daytime (including boost heating), a single-rate tariff can work out cheaper overall.

What off‑peak times does Economy 7 use?

It’s usually around 7 hours overnight, but the exact times can vary by region and meter configuration. Some meters may not adjust automatically between GMT/BST. Confirm the times on your bill or with your supplier.

Can I switch from Economy 7 to a single-rate tariff?

Often yes, but it depends on your meter and supplier. Some suppliers can bill a two-rate meter on a single-rate tariff, while others may need a meter reconfiguration/change. Always ask about any fees and how long it may take.

Do I need a smart meter for the cheapest time-of-use deals?

For many modern time-of-use tariffs, yes. Economy 7 can work on older two-rate meters too, but the widest ToU options typically require a smart meter that’s communicating properly.

Is Economy 10 better than Economy 7 for storage heaters?

Sometimes, but it’s less widely available and the off‑peak periods may be split across the day. It can suit households that need top-up heating at certain times, but compare carefully—rates, hours, and eligibility vary.

Do prepayment customers have access to Economy 7?

It depends on the supplier, meter type, and region. Some prepayment meters support two-rate billing, but tariff availability can be narrower than Direct Debit deals.

How do I estimate my day vs night usage split?

Check your electricity bill: Economy 7 statements usually show separate day and night kWh. If you have a smart meter with an in-home display or app, it may also break down usage by time period.

Will switching affect my storage heater wiring or controls?

Switching supplier usually doesn’t change your wiring, but moving between tariff types and meter setups can affect when off‑peak power is available. If your system relies on dedicated off‑peak circuits, confirm compatibility before you proceed.

Trust, methodology and sources

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How we assess the “cheapest tariff” for storage heaters

We treat “cheapest” as the lowest estimated annual cost for your circumstances, not the lowest headline unit rate. For storage heater homes, that means weighting:

  • Meter compatibility: single-rate vs two-rate vs smart ToU eligibility.
  • Usage split: estimated percentage of electricity used off‑peak (from bills where available).
  • Regional pricing: tariffs vary by distribution region and supplier.
  • Payment method: Direct Debit vs prepayment availability and pricing.
  • Contract terms: standing charges, exit fees, and tariff type (fixed/variable).

Limitations: Our examples use simplified unit-rate assumptions and may exclude standing charges to illustrate the trade-off. Your actual cheapest option can differ, especially if you have specialised metering or your off‑peak hours differ from typical patterns.

Sources (UK)

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Updated on 21 Apr 2026