Cheapest electricity tariff for home heating in the UK
If you heat your home with electricity (heat pump, storage heaters or panel heaters), the “cheapest” tariff depends on your meter, your usage pattern and whether you can shift demand to cheaper hours. This guide explains what to look for and lets you compare whole-of-market options in minutes.
- UK-specific: smart meters, Economy 7/10, EV/heat pump tariffs and regional pricing
- Clear pitfalls: exit fees, unit rate vs standing charge, and off-peak restrictions
- Two realistic cost scenarios with assumptions you can edit mentally to match your home
Estimates only. Prices vary by region, meter type, payment method and supplier terms. Always check your tariff details and annual cost before switching.
Fast answer: the cheapest tariff for electric heating is the one that matches when you use power
For most UK homes that rely on electricity for heating, the “cheapest” tariff usually falls into one of three buckets:
1) Single-rate tariff
Often best if you can’t shift heating to off-peak hours (panel heaters, daytime occupancy). Simpler and can be competitive when standing charges are lower.
2) Two-rate (Economy 7 / Economy 10)
Usually best for storage heaters or homes that can run a lot of load overnight. Works only if enough of your use lands in cheaper hours.
3) Smart time-of-use tariffs
Can be best for heat pumps and flexible households. Prices vary by time and sometimes by day. You’ll usually need a smart meter.
Key takeaway: don’t judge a tariff by unit rate alone. For electric heating, standing charge + off-peak hours + your meter type can matter just as much as the headline p/kWh.
Quick self-check (30 seconds)
- What type of heating do you have?
- Heat pump / storage heaters / direct electric radiators / other
- What meter do you have?
- Single-rate / Economy 7 (2-rate) / smart meter (half-hourly capable)
- Can you use most electricity at cheaper times?
- Yes (overnight / mid-day) or No (evenings and daytime only)
If you only remember one rule
Electric heating is high usage. The cheapest tariff is the one that produces the lowest estimated annual cost for your postcode once you enter your meter type and day vs night split (if applicable).
Use the comparison form below to check options that fit your home rather than headline rates.
Compare electricity tariffs for heating (whole of market)
Tell us where you live and how we can reach you. We’ll show tariffs that suit electric heating, including options for Economy 7/10 and smart meters where available.
Tip for electric heating: if you’re on Economy 7/10, have a recent bill handy so you can estimate your day vs night usage split when comparing.
What happens next
- We use your postcode to apply the correct regional charges (these affect the standing charge and unit rate).
- We match you to tariffs that fit your meter type and heating setup.
- You can review the full tariff details before making any decision.
Get your quote
Not sure what meter you have? If your bill shows separate “day” and “night” readings or rates, you’re likely on Economy 7 (or similar). If you see one reading/rate, you’re likely on a single-rate tariff.
How to choose the cheapest electricity tariff for home heating
For electric heating, you’re usually balancing three levers: unit rate(s), standing charge, and when you use energy. Use the steps below to avoid switching to a tariff that looks cheap but costs more across the year.
Step 1: Identify your heating type
- Heat pump: often runs across the day; cheaper if you can pre-heat or run more when rates are lower.
- Storage heaters: designed for cheaper overnight electricity (Economy 7/10).
- Panel heaters / electric radiators: usually peak-time use; a strong single-rate deal can beat two-rate tariffs.
Step 2: Confirm your meter & eligibility
- Single-rate meter: you can choose most standard tariffs.
- Economy 7/10 meter: you’ll need a compatible tariff (some suppliers support fewer legacy setups).
- Smart meter: enables more time-of-use tariffs and more accurate billing.
Step 3: Estimate your usage pattern
This is what makes or breaks “cheap” for electric heating.
- Economy 7: what % is night vs day?
- Time-of-use: can you run heat pump/immersion/laundry in cheaper slots?
- High usage: standing charge becomes less important than unit rate(s) — but it still adds up.
Standing charge warning: a tariff can have a low unit rate but a high standing charge. For electric heating (high kWh), unit rates usually dominate, but compare the estimated annual cost to be sure.
Two realistic scenarios (with numbers)
These examples are illustrative to show the trade-offs. We use simple maths so you can sense-check a quote. Assumptions are stated; your actual rates and usage will differ by region and tariff.
Scenario A: Flat with storage heaters (Economy 7 works)
- Annual electricity use: 7,200 kWh
- Night share: 60% (4,320 kWh night / 2,880 kWh day)
- Example single-rate: 27p/kWh, standing charge 55p/day
- Example Economy 7: day 30p/kWh, night 15p/kWh, standing charge 60p/day
In this scenario, Economy 7 is cheaper because the household genuinely uses most electricity overnight.
Scenario B: Family home with heat pump (single-rate may win)
- Annual electricity use: 9,500 kWh (includes heat pump)
- Off-peak share possible: 20% only (most demand mornings/evenings)
- Example single-rate: 26p/kWh, standing charge 50p/day
- Example time-of-use: peak 33p/kWh, off-peak 12p/kWh, standing charge 62p/day
Here, the higher peak rate and standing charge outweigh cheap off-peak because the household can’t shift enough load.
Reality check: The cheapest option can change if your day/night split changes (seasonally), if your supplier updates rates, or if you change heating controls. Re-check at least annually and after major home changes (new heat pump, insulation, different occupancy).
Tariff types compared (what’s cheapest for which heating setup?)
Use this as a decision tool. Then compare real tariffs for your postcode, because UK pricing varies by region, payment method and meter compatibility.
Decision checklist: likely a good fit if…
- You know your meter type (single-rate vs Economy 7/10 vs smart).
- You can estimate (even roughly) when you use electricity for heating.
- You compare total annual cost, not just p/kWh.
- You check contract length, exit fees, and payment method rules.
It may not suit if…
- You’re on a complex multi-rate meter and the tariff doesn’t explicitly support it.
- You can’t shift any usage but you’re considering a tariff with a high peak rate.
- You’re in a fixed deal with a large exit fee that wipes out the benefit.
- You’re in rented accommodation where the landlord controls the meter setup (check permissions first).
Tenants: you can usually switch supplier if you pay the bills, but check your tenancy agreement for any specific requirements and make sure any debt is addressed (some switches can be blocked where there is outstanding debt).
Costs, exclusions and common pitfalls (UK electric-heating specific)
These are the issues we see most often when people try to find the cheapest tariff for electric heating.
1) Economy 7 with too little night use
If only a small share of your heating load is off-peak, the higher day rate can cost more overall. Storage heaters usually work best when they’re correctly set up to charge overnight.
2) Not checking the off-peak hours
Off-peak windows aren’t always the same everywhere and can depend on your meter configuration. Confirm your actual cheap hours before relying on timers or heating schedules.
3) Fixed deals and exit fees
Some fixed tariffs charge exit fees per fuel. If you’re switching early, include that cost in your comparison.
4) Standing charge vs unit rates
A cheaper unit rate can hide a higher standing charge. Compare annual estimated cost for your usage, especially if you’re a low user outside winter.
5) Payment method differences
Direct Debit, variable Direct Debit, and prepayment can price differently. If you’re on prepayment, ensure the tariff is genuinely available for your meter type.
6) Smart tariffs and data settings
Some time-of-use tariffs require half-hourly readings. If your smart meter isn’t commissioned correctly or you’ve opted out of sharing reads, you may not be eligible.
If you’re vulnerable or struggling to pay: you may have access to extra support through your supplier and schemes such as the Priority Services Register. You can also get independent help from Citizens Advice.
FAQs
Is Economy 7 always the cheapest for electric heating?
No. Economy 7 can be cheaper if a large share of your electricity use is at night (often with storage heaters). If most of your heating is used during the day/evening, a single-rate tariff can be cheaper overall.
What are the Economy 7 hours?
It depends on your meter and region. Many meters provide 7 cheaper hours overnight, but the exact times vary. Check your bill, your in-home display (if smart), or ask your supplier for the off-peak window your meter uses.
Do heat pumps need a special electricity tariff?
Not necessarily. Many heat pump homes do well on a competitive single-rate tariff. A smart time-of-use tariff can help if you can shift heating/hot water to cheaper periods, but it can also increase costs if most use falls in peak windows.
Can I switch from Economy 7 to a single-rate tariff?
Often yes, but it depends on your meter and supplier. Some households keep the same meter and move to a single-rate product; others may need a meter reconfiguration or replacement. Always confirm any costs, timescales and whether it affects your heating controls.
Will a smart meter automatically make my electricity cheaper?
No. A smart meter can enable access to more tariff types and can improve billing accuracy, but the price depends on the tariff you choose and your usage pattern. Always compare estimated annual cost.
Why do electricity prices vary by postcode in the UK?
Some parts of the bill are regional (for example, electricity distribution network charges). That’s why the same tariff name can have slightly different standing charges and unit rates depending on where you live.
Are there any tariffs designed specifically for storage heaters?
Storage heaters usually benefit from Economy 7/10-style pricing rather than a particular brand of tariff. The key is ensuring your meter and tariff support the off-peak supply and that your heaters are set to charge during those hours.
What if I have solar panels as well as electric heating?
Solar can reduce daytime imports, but in winter your heating demand is often highest when solar output is low. You may still benefit from off-peak pricing for hot water or heat pump pre-heating. If you export, also check your export payment terms separately (export rates aren’t the same as import tariffs).
Trust, methodology and sources
Page ownership
- Written by
- EnergyPlus Editorial Team
- Reviewed by
- Energy Specialist
- Last updated
- May 2026
How we assess “cheapest” for electric heating
We treat “cheapest” as the lowest estimated annual cost for a specific home, not the lowest advertised unit rate. For electric heating, we prioritise:
- Meter compatibility: single-rate vs Economy 7/10 vs smart/time-of-use eligibility.
- Realistic usage pattern: especially day/night split for Economy 7 and peak/off-peak share for time-of-use.
- Tariff structure: unit rate(s), standing charge, contract length, exit fees, and any time restrictions.
- UK specifics: regional pricing differences and payment method availability.
Limitations: examples on this page use simplified rates to illustrate trade-offs. Supplier prices change, and off-peak hours can differ by meter configuration. Always check the tariff information and your own consumption before switching.
Sources and further reading (UK)
- Ofgem (Great Britain energy regulator) — guidance on tariffs, switching and consumer protections.
- Citizens Advice: Energy — help with bills, meters, and getting support if you’re struggling.
- GOV.UK — official information on household energy support and schemes (where applicable).
Ready to find the cheapest tariff for your electric heating?
Compare whole-of-market options for your postcode and meter type. You’ll see tariffs that fit how you heat your home, with clear caveats and next steps.
Reminder: If you’re on Economy 7/10 or considering time-of-use, double-check your off-peak windows and whether you can shift heating/hot water to those periods before choosing.
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