Home Heat Pump Guide

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

By Home Heat Pump Guide
Old gas boiler in a UK cupboard representing British Gas's legacy focus on gas heating rather than heat pump tariff innovation
British Gas's roots in gas supply mean their heat pump tariff offerings lag behind more agile competitors.

British Gas customers with heat pumps may be paying more than they need to. As far as we could check, British Gas does not offer a dedicated heat pump tariff, so heat pump owners on its standard variable tariff pay the price cap rate for every unit their system uses, including the hours when other suppliers' time-of-use tariffs are much cheaper.

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 for your air source heat pump.

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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. Instead, they provide their general tariff range plus some smart-meter-enabled features.

Product Rate Time-of-Use? Heat Pump Benefit
Flex (Standard Variable) 26.32p/kWh (price cap) No None — price cap rate
Fixed-Price Deals Varies (check British Gas) No Price certainty only
PeakSave Credits only Partial Credits for cutting use at peak times

Price cap: Ofgem, 1 October 2026 to 31 December 2026 (GB average, Direct Debit). PeakSave is a supplementary programme, not a standalone tariff. Last reviewed October 2026: check British Gas for current deals.

At 26.32p/kWh, a heat pump using 4,000 kWh per year costs about £1,053 in electricity. At current price cap rates that is already a little cheaper than heating the same home with a gas boiler on our standard example, and a time-of-use tariff can widen the gap. PeakSave adds modest credits for demand flexibility but is not a substitute for a proper heat pump tariff.

British Gas customer researching whether to switch energy supplier to get cheaper heat pump electricity rates
British Gas customers should compare their current costs against what dedicated heat pump tariffs offer.

How British Gas Compares for Heat Pump Owners

Illustration: Annual Heat Pump Electricity Cost (4,000 kWh)

British Gas standard variable (26.32p/kWh)
£1,053
Cosy-style time-of-use (60% in cheap windows)
£731

Illustration only: the October 2026 price cap rate versus 60% of use in cheap windows priced 51% below a day rate equal to that rate (the Cosy Octopus structure), with the rest at the day rate. Real rates are regional: check the supplier's current rates.

In this illustration the difference is about £320 a year, or roughly £1,600 over five years if rates stayed the same. If you have a heat pump and can schedule your heating into cheap windows, it is worth comparing.

Why British Gas Lags Behind on Heat Pump Tariffs

  • Legacy gas business: British Gas's business model revolves around gas boiler servicing and gas supply. Heat pumps represent a disruptive shift away from their core revenue
  • Scale challenges: Rolling out new tariffs across a very large customer base can be more complex than for a tech-first supplier like Octopus
  • Installation focus: British Gas has invested heavily in heat pump installation through partnerships with manufacturers, focusing on that side rather than tariff innovation

These are possible reasons rather than anything British Gas has stated. We have not seen any confirmed plans for a British Gas heat pump tariff, so check its current tariffs before deciding.

Heat pump versus gas boiler comparison highlighting why British Gas customers should review their electricity tariff
The shift from gas to heat pumps requires a shift in tariff thinking too — standard rates no longer make sense.

Should You Stay with British Gas?

Reasons to Stay

BG installed your heat pump with warranty tied to account; HomeCare bundle value; prefer Big Six support

Reasons to Switch

Could pay around £300 a year more than on a time-of-use tariff; no dedicated heat pump tariff; heat pump tariffs exist elsewhere

For heat pump owners who can schedule their heating, the financial case for comparing tariffs is strong. Check whether your heat pump warranty or HomeCare contract is genuinely tied to your energy account (it usually is not), and then explore the alternatives.

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How to Switch Away from British Gas

  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. Your supply is not interrupted during the switch
  5. Check for exit fees if you are on a British Gas fixed-price contract (standard variable has no exit fees)

Your smart meter will continue to work with most suppliers. SMETS2 meters are fully interoperable.

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 manufacturers, they offer full heat pump installation packages including site survey, MCS-certified installation, BUS grant application (£7,500), and ongoing servicing.

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 decisions. An MCS-certified installation is valid regardless of who supplies your electricity.

Heat pump installation engineer at a UK home — installation and electricity supplier are separate decisions
You can use any installer (including British Gas) and any energy supplier independently.

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Frequently Asked Questions

Does British Gas have a heat pump electricity tariff?

As far as we could check (last reviewed October 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?

We have not seen any confirmed plans or launch date for a British Gas heat pump tariff. Check British Gas's current tariffs before deciding whether to stay or switch.

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

Potentially, yes. British Gas offers heat pump installation. Get quotes from multiple installers 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?

On its standard variable tariff, British Gas's electricity standing charge is limited by the Ofgem price cap: 54.83p per day for 1 October 2026 to 31 December 2026 (GB average, Direct Debit). Standing charges vary by region, and other suppliers' standard variable tariffs are capped at the same level.

British Gas and the Changing UK Energy Market

British Gas's position in the heat pump market reflects the broader tension facing legacy energy suppliers. While British Gas offers heat pump installation services, including handling the Boiler Upgrade Scheme application, its tariff products have not kept pace with specialist competitors. For consumers, this means separating installation and supply decisions — potentially using British Gas for installation while choosing a supplier like Octopus for electricity. Combining the right tariff with solar panels and good insulation creates the most cost-effective overall heat pump system.

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