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British Gas Heat Pump Tariff: Options, Rates and Full Review

British Gas is the UK's largest energy supplier, serving around 7 million households. If you have recently installed a heat pump — or are considering one — you may be wondering what British Gas offers in terms of electricity tariffs for heat pump owners. The honest answer is: not as much as some competitors, but there are still options worth exploring.

In this review, we look at what British Gas currently provides for heat pump households, how their rates compare, and whether you should stick with them or switch to a more specialised supplier.

What British Gas Offers Heat Pump Owners

Unlike Octopus Energy, British Gas does not currently offer a dedicated, bespoke heat pump tariff with special rates for heat pump electricity usage. Instead, they provide their general tariff range, plus some smart-meter-enabled features that can benefit heat pump owners.

Standard Variable Tariff (Flex)

Most British Gas customers default to their standard variable tariff, called Flex. As of early 2026:

  • Unit rate: Approximately 24.5p per kWh (Ofgem price cap rate)
  • Standing charge: Approximately 53p per day
  • No time-of-use element: Same rate all day

This is the least cost-effective option for heat pump owners. At 24.5p/kWh, a heat pump using 4,000 kWh per year costs £980 in electricity — which may be comparable to or higher than a gas boiler depending on gas prices.

Fixed-Price Deals

British Gas periodically offers fixed-price tariffs that lock your unit rate for 12-24 months. These can be slightly below or above the price cap depending on market conditions.

  • Unit rate: Varies (typically 22-26p/kWh depending on the deal and timing)
  • Benefit: Price certainty for the contract period
  • Drawback: Usually includes early exit fees

Fixed deals can be worthwhile if you catch one at a competitive rate, but they do not offer the off-peak discounts that benefit heat pump scheduling.

PeakSave

British Gas's most relevant offering for heat pump owners is PeakSave, their demand flexibility programme. It rewards customers for reducing electricity usage during peak demand periods.

  • How it works: British Gas sends notifications asking you to reduce usage during specific peak periods (typically winter evenings)
  • Reward: Credits on your energy bill for participating
  • Requirements: Smart meter

PeakSave is not a tariff as such — it is a supplementary scheme that gives you small credits for flexibility. The savings are modest (typically £50-100 per year) compared to switching to a proper time-of-use tariff.

How British Gas Compares for Heat Pump Owners

Let us compare the annual cost of running a heat pump on British Gas versus the main competitors. Assuming 4,000 kWh heat pump electricity usage per year:

  • British Gas Flex (24.5p/kWh flat): £980
  • British Gas Fixed (23p/kWh estimated): £920
  • Octopus Cosy (effective rate ~15p/kWh with 60% off-peak): £600
  • Scottish Power SmartGen (16.5p/kWh flat): £660
  • EDF GoElectric (effective rate ~16p/kWh with off-peak scheduling): £640

The numbers are stark. British Gas customers with heat pumps are potentially paying £280-380 more per year than they would on a competitor's heat pump tariff. Over five years, that is £1,400-1,900 in unnecessary costs.

Why British Gas Lags Behind on Heat Pump Tariffs

British Gas's parent company, Centrica, has been slower to develop heat pump-specific products than newer entrants like Octopus. There are several reasons:

  • Legacy gas business: British Gas has historically been a gas supplier. Their business model revolves around gas boiler servicing and gas supply. Heat pumps represent a disruptive shift
  • Scale challenges: With 7 million customers, rolling out innovative tariffs is more complex than for a smaller, tech-first supplier
  • HomeCare focus: British Gas has invested heavily in its heat pump installation business (HomeCare and partnerships with Daikin/Samsung), focusing on the installation side rather than tariff innovation
  • Regulatory constraints: Larger suppliers face more scrutiny around pricing structures and cross-subsidisation

That said, British Gas is evolving. They have acknowledged that heat pump-specific tariffs are needed and have been trialling new products. It is possible that by late 2026 or 2027, they will have a more competitive heat pump tariff offering.

Should You Stay with British Gas?

Reasons to Stay

  • British Gas installed your heat pump: If British Gas installed your system under their HomeCare programme, you may have a service/warranty package tied to your account. Check whether switching suppliers affects this
  • HomeCare bundle: Some customers value British Gas's home emergency cover and boiler/heating servicing. If you have a combined deal, factor in the cost of replacing this separately
  • Inertia is expensive: This is not a reason to stay — but it is the main reason people do. Do not let the hassle of switching cost you hundreds of pounds a year

Reasons to Switch

  • Cost: You are likely paying £300+ more per year than you would on a heat pump-specific tariff from Octopus, Scottish Power, or EDF
  • No heat pump tariff: Without a dedicated product, British Gas simply cannot match the savings available elsewhere
  • Better options exist: The energy market is competitive and switching is free and easy

How to Switch Away from British Gas

If you decide to switch, the process is straightforward:

  1. Compare tariffs using our best heat pump tariff guide
  2. Choose your new supplier (we recommend Octopus Cosy for most heat pump owners)
  3. Sign up with the new supplier — they handle the switch from British Gas
  4. The switch takes 2-3 weeks. Your supply is not interrupted
  5. Check for exit fees if you are on a British Gas fixed-price contract (standard variable has no exit fees)

Your smart meter (if you have one) will continue to work with most suppliers. SMETS2 meters are fully interoperable. If you have an older SMETS1 meter, check with your new supplier that it will work correctly.

British Gas Heat Pump Installation vs Tariff

It is worth noting that British Gas is a significant heat pump installer in the UK. Through their partnership with Daikin and other manufacturers, they offer full heat pump installation packages including:

  • Site survey and system design
  • MCS-certified installation
  • BUS grant application (£7,500 government subsidy)
  • Ongoing servicing and maintenance

You can absolutely use British Gas for installation and then switch to a different energy supplier for your electricity tariff. The two are completely separate. An MCS-certified installation from British Gas is valid regardless of who supplies your electricity.

What British Gas Could Do Better

If British Gas wants to compete for heat pump customers, they need to:

  • Launch a dedicated heat pump tariff with time-of-use rates comparable to Octopus Cosy
  • Bundle installation and tariff — offer a combined deal where customers who install through British Gas get a preferential electricity rate
  • Develop smart scheduling — integrate tariff pricing with heat pump controls so systems automatically optimise for cheapest electricity

Until they do this, heat pump owners are better served by suppliers who have already built these products. See our full tariff comparison for alternatives.

Frequently Asked Questions

Does British Gas have a heat pump electricity tariff?

As of early 2026, British Gas does not offer a dedicated heat pump electricity tariff with special rates for heat pump owners. They offer their standard variable and fixed-price tariffs, plus PeakSave demand flexibility credits. This is less competitive than dedicated heat pump tariffs from suppliers like Octopus Energy.

Can I get cheaper electricity for my heat pump with British Gas?

The best British Gas can currently offer is a competitive fixed-price deal (if one is available) and PeakSave credits. For genuinely cheap heat pump electricity, you would need to switch to a supplier offering time-of-use or dedicated heat pump rates.

Will switching away from British Gas affect my heat pump warranty?

Your heat pump manufacturer warranty is independent of your energy supplier. Switching electricity providers does not affect it. If you have a British Gas HomeCare maintenance contract, check the terms — it should continue regardless of your electricity supplier, but verify to be safe.

Is British Gas likely to launch a heat pump tariff soon?

British Gas has indicated interest in developing heat pump-specific products, and market pressure from competitors like Octopus is driving innovation. It is likely that British Gas will improve their heat pump tariff offering in 2026-2027, but nothing has been confirmed at the time of writing.

Should I use British Gas to install my heat pump even if I switch supplier?

Potentially, yes. British Gas is a reputable MCS-certified installer with access to good manufacturers. Get quotes from multiple installers (including British Gas) and choose based on price, quality, and service. Your electricity supplier is a completely separate decision. See our heat pump cost guide for more on installation pricing.

What standing charge does British Gas charge?

British Gas's electricity standing charge is set at the Ofgem price cap level, approximately 53p per day as of Q1 2026. This is comparable to other suppliers — standing charges are largely uniform across the market due to the price cap mechanism.