Best Electricity Tariff for Heat Pumps UK 2026

The wrong electricity tariff could be costing you hundreds of pounds a year. Many heat pump owners stay on a standard variable tariff, paying the Ofgem price cap rate of 26.32p per kWh (1 October 2026 to 31 December 2026, GB average, Direct Debit) for every unit their system draws. Time-of-use tariffs charge much less in set cheap windows, so if you can shift most of your heating into those windows your annual heating bill can fall noticeably.

We have reviewed what the major UK energy suppliers offer heat pump owners. Below, you will find how each tariff works, what it requires, which ones have closed, and a simple way to estimate savings for your home and your air source heat pump setup.

Why Heat Pump Owners Need a Special Tariff

A heat pump typically uses between 3,000 and 5,000 kWh of electricity per year for an average UK home. At the Ofgem price cap electricity rate of 26.32p per kWh (1 October 2026 to 31 December 2026), that translates to about £790 to £1,316 a year just for heating.

Dedicated heat pump tariffs — and time-of-use tariffs designed for high-electricity households — can reduce this substantially. Cosy Octopus, for example, prices its three daily cheap windows at 51% below your regional day rate (Octopus), meaning you can heat your home and hot water cylinder during off-peak hours for a fraction of the daytime cost.

The key is understanding which tariff suits your setup. Do you have a smart meter? Can you schedule your heating to run overnight? Is your home well-insulated enough to retain warmth through expensive peak periods? These factors determine which tariff will genuinely save you money.

The Best Heat Pump Tariffs Compared

1. Octopus Energy — Cosy Octopus

Octopus Energy has positioned itself as the go-to supplier for heat pump owners, and for good reason. Their Cosy Octopus tariff is specifically designed for homes with heat pumps, offering three off-peak windows throughout the day.

• Cheap rate: 51% below your regional day rate during three windows (4am-7am, 1pm-4pm and 10pm-midnight)
• Peak rate: 50% above your regional day rate during 4pm-7pm
• Day rate: Your regional day rate at all other times (check Octopus for current rates in your area)
• Requirements: Smart meter, registered heat pump
• Best for: Homes that can shift most heating to off-peak windows

Octopus also offers Intelligent Octopus Go, but that is an electric vehicle tariff: it usually requires a compatible EV or charger, so it is not a heat pump tariff. Households with both an EV and a heat pump can still benefit from its overnight cheap rate. Read our full Octopus heat pump tariff review for more detail.

2. Scottish Power — Heat Pump Saver (not currently available)

Scottish Power has offered a dedicated heat pump tariff, Heat Pump Saver, but its website says the tariff is not currently available because of market conditions. We could not verify any other current ScottishPower heat pump tariff, so check ScottishPower's own site before relying on one.

3. British Gas — Heat Pump Options

British Gas offers heat pump owners access to their flexible tariff range, though they do not currently have a bespoke heat pump-only product in the same way Octopus does. Their PeakSave offering provides some time-of-use flexibility.

• Rate: Standard variable rate set by the Ofgem price cap (26.32p per kWh GB average, 1 October 2026 to 31 December 2026), or a fixed rate
• PeakSave: Rewards for reducing usage during peak periods
• Requirements: Smart meter for PeakSave
• Best for: Existing British Gas customers who are not ready to switch

4. EDF Energy — GoElectric

EDF's GoElectric tariffs are electric vehicle tariffs with a cheaper overnight rate. They are not heat pump tariffs and usually require an EV or charger, but a household with both an EV and a heat pump can use the overnight rate for heating and hot water too.

• Off-peak rate: Cheaper overnight rate (check EDF's current rates)
• Peak rate: Standard daytime rate
• Requirements: Smart meter; usually an electric vehicle
• Best for: Households with both a heat pump and an electric vehicle

5. OVO Energy

OVO closed its Heat Pump Plus tariff on 1 February 2026 (OVO), so it does not currently offer a dedicated heat pump tariff to new customers. Its standard variable tariff is covered by the Ofgem price cap.

• Rate: Standard variable rate up to the price cap, or a fixed rate (check OVO's current rates)
• Smart features: OVO Greenlight provides half-hourly pricing signals
• Best for: Homeowners who want a competitive flat rate with green credentials

6. E.ON Next — Next Drive

E.ON Next's Next Drive is an electric vehicle tariff, not a heat pump tariff. It usually requires an EV, but heat pump and EV households can use its cheaper overnight electricity for heating too.

• Off-peak rate: Cheaper overnight rate (check E.ON Next's current rates)
• Daytime rate: Check the supplier's current rates
• Requirements: Smart meter; usually an electric vehicle
• Best for: Households with both an EV and a heat pump that can schedule heating overnight

How to Choose the Right Tariff

Step 1: Check Your Annual Heat Pump Electricity Usage

Before comparing tariffs, you need to know how much electricity your heat pump actually uses. Check your smart meter data or your energy bills from the past 12 months. A typical air source heat pump uses 3,000-5,000 kWh per year, but this varies enormously depending on your home's insulation, size, and your preferred indoor temperature.

Step 2: Assess Your Flexibility

Time-of-use tariffs only save money if you can actually shift your electricity usage to cheap periods. Ask yourself:

• Can you schedule your heat pump to pre-heat the house overnight or during afternoon off-peak windows?
• Do you have a hot water cylinder that can be heated during cheap periods and store heat for later?
• Is your home well-insulated enough to retain heat through peak-rate periods without the heat pump running?
• Do you have a smart meter installed (most time-of-use tariffs require one)?

If the answer to most of these is yes, a time-of-use tariff like Cosy Octopus will likely save you the most. If you cannot shift usage — perhaps because your home loses heat quickly — a flat-rate tariff may be better.

Step 3: Calculate Real Savings

Do not just compare unit rates. A tariff with a very cheap off-peak rate and an expensive peak rate could cost you more than a flat-rate tariff if you cannot shift enough consumption to the cheap windows. Use your actual half-hourly usage data (available from your smart meter) to model what each tariff would cost. If you are also considering solar panels to reduce electricity costs, factor in daytime self-consumption too.

Smart Meter: Essential for Best Rates

Almost every worthwhile heat pump tariff requires a smart meter. If you do not have one, contact your energy supplier to arrange a free installation — it is your legal right to request one.

A SMETS2 smart meter (the current standard) works with all suppliers, so you can switch freely. Older SMETS1 meters have largely been upgraded to work across suppliers too, but check with your current provider if you are unsure.

Smart meters enable half-hourly billing, which is the foundation of time-of-use tariffs. Without one, suppliers cannot verify when you used electricity, so they cannot offer you cheaper off-peak rates.

Scheduling Your Heat Pump for Maximum Savings

Once you are on a time-of-use tariff, the key to saving money is scheduling your heat pump to do the heavy lifting during cheap periods. Most modern heat pumps have built-in scheduling or can be controlled via apps.

Pre-Heating Strategy

The most effective approach is to pre-heat your home during off-peak hours. For example, on the Octopus Cosy tariff, you might:

• Run the heat pump at full capacity from 4am to 7am (off-peak) to warm the house before you wake up
• Let the house coast on stored heat through the morning with minimal top-up
• Boost again during the 1pm-4pm off-peak window
• Avoid running the heat pump during the 4pm-7pm peak period when rates are highest
• Heat your hot water cylinder during the 10pm-midnight off-peak window

This strategy works best in well-insulated homes with good thermal mass (solid walls, concrete floors). Lighter-construction homes may lose heat too quickly to coast through peak periods. If that describes your property, improving insulation first will unlock much bigger tariff savings.

What About Economy 7 and Economy 10?

Older two-rate tariffs like Economy 7 (seven hours of cheap overnight electricity) and Economy 10 (ten hours across day and night) still exist, but they are generally not the best option for heat pump owners in 2026.

The problem is that Economy 7's daytime rate is usually significantly higher than a standard single-rate tariff (check your supplier's current rates). Unless you can genuinely shift 40-50% of your total electricity usage to the overnight window, you will end up paying more overall.

Modern time-of-use tariffs such as Cosy Octopus are far more sophisticated, with multiple cheap windows throughout the day and more reasonable daytime rates. They are almost always a better choice.

How Much Can You Actually Save?

In this illustration the saving is about £316 a year, a real dent in your heat pump running costs; on our standard example (11,500 kWh of heat a year) a heat pump is already a little cheaper to run than a gas boiler at price cap rates. To estimate your own figure, start with how much electricity a heat pump uses in a year in a home like yours. Pairing a heat pump tariff with solar panels can reduce bills further still.

Our Recommendation

For most UK heat pump owners in 2026, Octopus Cosy is the best overall tariff. It offers three cheap windows a day and is specifically designed around heat pump usage patterns. The multiple cheap windows throughout the day give you more flexibility than tariffs with just a single overnight cheap period.

If you also have an electric vehicle, EV tariffs such as EDF GoElectric and E.ON Next Drive may suit overnight-heavy scheduling, but check eligibility because they usually require an EV. ScottishPower's Heat Pump Saver is not currently available, and OVO's Heat Pump Plus closed on 1 February 2026. Rates change often, so check the supplier's current rates before you switch (last reviewed October 2026).

Whatever you choose, it is worth checking whether a time-of-use tariff would beat your standard variable tariff for your own usage pattern. See our full tariff comparison guide for detailed tables and our 10 tips for cutting heat pump electricity costs for more ways to save.

Frequently Asked Questions

Do I need a special electricity meter for a heat pump tariff?

Most heat pump tariffs require a smart meter (SMETS2), which is installed free of charge by your energy supplier. You do not usually need a separate meter for the heat pump — the smart meter records your total household electricity use on a half-hourly basis, which enables time-of-use billing.

Can I switch energy supplier if I have a heat pump?

Yes, absolutely. Having a heat pump does not lock you into any particular supplier. You can switch freely, though you should check that the new supplier offers a tariff that benefits heat pump owners before moving.

Is it worth switching tariff if I only have a small heat pump?

Even a small heat pump using 2,500 kWh per year could save around £200 a year if 60% of its use falls in cheap windows priced at half the standard price cap rate. The savings scale with usage — the more electricity your heat pump consumes, the more you benefit from cheaper off-peak rates.

What happens if I use electricity during peak hours on a time-of-use tariff?

You pay the peak rate for that usage. Time-of-use tariffs have higher peak rates than standard tariffs, so you need to be disciplined about shifting usage to cheap windows. If you cannot do this, a flat-rate tariff may work out cheaper.

Will the government introduce a dedicated heat pump electricity rate?

There have been ongoing discussions about rebalancing electricity and gas levies to make heat pumps cheaper to run. As of early 2026, the government has committed to reviewing energy levies but no dedicated heat pump electricity rate has been legislated. The best option remains switching to a competitive time-of-use tariff from a commercial supplier.

Can I combine a heat pump tariff with solar panels?

Yes, and this is an excellent combination. Solar panels generate free electricity during the day, reducing what you draw from the grid. Combined with a cheap overnight tariff for heating, you can dramatically reduce your annual electricity bill. Some suppliers also offer export tariffs for surplus solar generation.