You have installed a heat pump, or you are planning to. Your next question is likely about which electricity tariff will keep your running costs as low as possible. The energy market now offers tariffs specifically designed for heat pumps, but choosing the wrong one could cost you more than a standard deal.
Time-of-use heat pump tariffs from Octopus and EDF offer off-peak rates as low as 12p/kWh, compared to 24.5p/kWh on a standard tariff. Your annual savings depend on shifting heating to off-peak hours and having good home insulation.
- Time-of-use tariffs offer off-peak rates as low as 12p/kWh.
- Standard variable tariff costs around 24.5p/kWh (Ofgem cap, 2026).
- Annual savings depend on heating pattern and home insulation level.
- A smart meter in half-hourly mode is required for dedicated heat pump tariffs.
- Modern heat pump SCOP of 3.5 reduces costs 30-50% vs gas boiler.
- The cheapest heat pump tariff in 2026 is typically a time-of-use rate, but your annual savings depend on your heating pattern and insulation
- Quick numbers typical annual running costs by tariff type (2026)
- How to compare a heat pump tariff against a standard electric tariff in three steps
- What is the best heat pump tariff for your home?
- How to verify an installer and tariff eligibility (MCS certification and smart meter requirements)
- The trade-off lower running costs vs. higher peak rates and standing charges
- How to switch heat pump tariffs and what to check before you sign
The cheapest heat pump tariff in 2026 is typically a time-of-use rate, but your annual savings depend entirely on your heating pattern and the insulation level of your home. A standard variable tariff under the Ofgem price cap averages around 24.5p/kWh (Ofgem, January 2026 quarterly default tariff cap), while dedicated heat pump tariffs from suppliers like Octopus Energy (Cosy Octopus) and EDF (Heat Pump Plus) offer off-peak rates as low as 12p/kWh, though peak rates can exceed 30p/kWh (Octopus Energy tariff page, March 2026).
The cheapest heat pump tariff in 2026 is typically a time-of-use rate, but your annual savings depend on your heating pattern and insulation
A heat pump operates at an efficiency level called the Seasonal Coefficient of Performance (SCOP). Most modern heat pumps have an SCOP between 3.0 and 4.0, meaning they produce three to four units of heat for every unit of electricity they consume. The Energy Saving Trust says that even on a standard tariff, a heat pump with an SCOP of 3.5 can reduce heating costs by 30–50% compared to a gas boiler (Energy Saving Trust, heat pump running cost calculator methodology).
Time-of-use tariffs can cut bills further if you shift your heating to off-peak hours. However, there is a catch. Without a smart meter operating in half-hourly mode, you cannot access most of these dedicated heat pump tariffs. You also need the ability to schedule your heating, which most modern heat pump controls allow. If your home has poor insulation, your heat pump may need to run continuously during peak hours, wiping out the savings from the lower off-peak rate.
Quick numbers typical annual running costs by tariff type (2026)
| Tariff Type | Off-Peak Rate (p/kWh) | Peak Rate (p/kWh) | Estimated Annual Cost (3-bed semi, SCOP 3.5) | Source |
|---|---|---|---|---|
| Standard variable | 24.5 (all hours) | 24.5 | £1,100–£1,400 | Ofgem price cap Jan 2026 |
| Economy 7 (7-hour off-peak) | 14.5 | 28.0 | £950–£1,200 | Ofgem fuel mix data + supplier rates |
| Dedicated heat pump tariff (12h off-peak) | 12.0 | 31.0 | £800–£1,050 | Octopus Cosy Octopus & EDF Heat Pump Plus (March 2026) |
| Time-of-use (4h super-off-peak) | 8.5 | 34.0 | £750–£1,000 | OVO Heat Pump Plus (March 2026) |
How to compare a heat pump tariff against a standard electric tariff in three steps
Step 1: Calculate your heat pump’s annual electricity consumption. Find your home’s annual heat demand, which is listed on your Energy Performance Certificate (EPC) or can be estimated using the Energy Saving Trust’s online tool. Divide that number by your heat pump’s SCOP. For example, a home with a heat demand of 12,000 kWh per year and a heat pump with an SCOP of 3.5 will use 3,429 kWh of electricity (12,000 / 3.5).
Step 2: Multiply that consumption by the tariff’s average rate. For a standard tariff with a flat rate, this is simple. For a time-of-use tariff, you need to estimate the proportion of your heating that runs during off-peak versus peak hours. If you heat for 60% of the time during off-peak hours and 40% during peak hours, you calculate the weighted average rate. For example, (0.6 x 12p) + (0.4 x 31p) = 19.6p/kWh average. Multiply 3,429 kWh by 0.196 to get £672 for the usage element.
Step 3: Add standing charges and compare. Standing charges in 2026 range from 50p to 60p per day across most suppliers (Ofgem standing charge data). Multiply by 365 days and add to your usage cost. Compare this total to your current gas or electric bill to see the real difference.
What is the best heat pump tariff for your home?
The best heat pump tariff in 2026 depends on your heating schedule and insulation. If you can schedule your heating to run during off-peak hours, a dedicated time-of-use plan from Octopus Energy (Cosy Octopus) or EDF (Heat Pump Plus) is likely the cheapest option. Octopus offers off-peak periods from 4pm to 7pm and 10pm to 6am. EDF offers off-peak from 12am to 7am and 1pm to 4pm.
If your heat pump runs continuously because your home has poor insulation or is very large, a standard variable tariff with a fixed rate of 24.5p/kWh may be cheaper overall. The reason is that peak rates on time-of-use plans can exceed 30p/kWh, and if you use a lot of electricity during those peak hours, your bill rises quickly.
For homes with solar panels and battery storage, a time-of-use tariff with a very low super-off-peak rate, such as OVO’s 8.5p/kWh rate, can be highly effective. You charge your battery overnight on cheap electricity and then run the heat pump from the battery during the day, avoiding peak rates entirely.
How to verify an installer and tariff eligibility (MCS certification and smart meter requirements)
To qualify for any dedicated heat pump tariff, your heat pump must be installed by an MCS-certified installer. The Microgeneration Certification Scheme (MCS) is the industry standard for renewable technology installations. You can check the MCS register online to confirm your installer’s certification (MCS register). This also affects your eligibility for the Boiler Upgrade Scheme grant.
Your home must have a smart meter installed and operating in half-hourly mode. Suppliers will not switch you to a time-of-use tariff without one (Ofgem, smart meter rollout update 2026). If you plan to add solar panels or battery storage later, the installer must be MCS-certified for those technologies as well. Your Distribution Network Operator (DNO) may also need to approve the export connection (Energy Networks Association, DNO registration process). how to find a MCS certified heat pump installer
The trade-off lower running costs vs. higher peak rates and standing charges
Dedicated heat pump tariffs typically have higher standing charges, ranging from 55p to 65p per day, compared to 50p per day on a standard tariff. This adds between £18 and £55 per year to your bill (supplier tariff comparison, March 2026).
Peak rates on time-of-use plans can be 25–40% higher than standard rates. This means any heating or hot water use during peak hours significantly reduces your savings. If you work from home and need heating during the day, you may need to shift your schedule or install a hot water tank that heats only during off-peak periods. Battery storage, which typically costs £4,000 to £6,000 installed in 2026, can smooth out peak usage but adds a payback period of 3 to 7 years depending on your tariff savings (Solar Energy UK, battery storage cost data 2026).
How to switch heat pump tariffs and what to check before you sign
Switching a heat pump tariff is a simple supplier switch under Ofgem’s 28-day switching rules. However, you must confirm the new tariff is compatible with your heat pump model. Some tariffs require a minimum SCOP or a specific efficiency rating. Check the exit fees. Some dedicated heat pump tariffs in 2026 have early exit fees of £50 to £100 if you leave within 12 months (supplier terms and conditions, March 2026).
Use a price comparison site that includes heat pump-specific tariffs, such as MoneySavingExpert’s Cheap Energy Club or uSwitch’s heat pump filter, to see all available options in your region. If you receive the Boiler Upgrade Scheme grant, which is £7,500 in 2026, your heat pump must be installed before you switch tariffs. The grant is not affected by your choice of electricity tariff (GOV.UK, Boiler Upgrade Scheme guidance 2026). Boiler Upgrade Scheme eligibility and application steps
Frequently Asked Questions
The cheapest heat pump tariff in 2026 is typically a time-of-use rate, such as Octopus Energy's Cosy Octopus or EDF's Heat Pump Plus. These offer off-peak rates as low as 12p/kWh, according to supplier tariff pages from March 2026.
Yes, you need a smart meter operating in half-hourly mode to access most dedicated heat pump tariffs. Without it, suppliers cannot track your off-peak usage, as confirmed by Ofgem's smart metering requirements.
Savings vary, but switching from a standard tariff to a time-of-use heat pump tariff can save you £200-£400 per year. The Energy Saving Trust notes that actual savings depend on your heating schedule and home insulation.
The standard variable tariff under the Ofgem price cap averages around 24.5p/kWh as of January 2026. Dedicated heat pump tariffs offer lower off-peak rates but higher peak rates.
Yes, you can use a heat pump on a standard tariff, but running costs will be higher. The Energy Saving Trust states that even on a standard tariff, a heat pump with SCOP 3.5 can cut heating costs by 30-50% compared to a gas boiler.
