The cheapest heat pump tariff in 2026 saves you roughly £150–£200 a year compared to a standard variable tariff
If you have a heat pump, the electricity tariff you choose has a major effect on your annual running costs. The cheapest option in 2026 is not a single fixed-rate product but a category of tariffs designed around when you use power.
Time-of-use heat pump tariffs save £150-£200 a year versus standard variable rates in 2026. The cheapest option, Octopus Cosy, offers 7.5p/kWh off-peak for 4 hours. Your actual saving depends on your heat pump's efficiency and how much heating you shift to off-peak hours.
- Time-of-use tariffs save £150-£200 a year over standard variable rates.
- Octopus Cosy offers 7.5p/kWh for 4 off-peak hours in 2026.
- Octopus Agile average off-peak rate is 8.2p/kWh in Q1 2026.
- Your actual saving depends on heat pump SCOP and home heat loss.
- Eligibility requires an MCS-certified heat pump installation.
- The cheapest heat pump tariff in 2026 saves you roughly £150–£200 a year compared to a standard variable tariff
- Heat pump tariffs ranked by 2026 average off-peak rates (p/kWh)
- Quick numbers — annual running cost comparison for a typical 3-bed semi (12,000 kWh heat demand)
- Who qualifies for the cheapest heat pump tariffs in 2026
- Who does NOT qualify for heat pump tariffs — and what to do instead
- How to verify your installer is MCS-certified (the only way to qualify)
- The direct answer — the 2026 heat pump tariff that saves the most for the average household
These are time-of-use tariffs that charge a lower per-kWh rate for electricity during off-peak hours, typically 5–8 hours overnight. The Department for Energy Security and Net Zero (DESNZ) modelling for 2026 shows that a household on a standard variable tariff pays roughly £150–£200 more per year than one on a well-matched time-of-use tariff (DESNZ, 2026). The Energy Saving Trust’s own running cost comparison confirms this range for a typical 3-bed semi with a heat pump (Energy Saving Trust, 2026).
Your actual saving depends on three factors: the heat pump’s Seasonal Coefficient of Performance (SCOP — the average efficiency across a year), the home’s heat loss, and how much of your heating load you can shift to the cheaper rate period. The “cheapest” tariff on paper is not always the best fit — eligibility and your daily heating pattern matter more than the headline off-peak rate.
Heat pump tariffs ranked by 2026 average off-peak rates (p/kWh)
Below is a ranked list of the top five heat pump tariffs available in 2026, based on average off-peak rates published by Ofgem’s electricity tariff comparison data for Q1 2026 (Ofgem, 2026) and the Energy Saving Trust’s heat pump tariff guide (Energy Saving Trust, March 2026).
Rates vary by region. The figures below reflect the Great Britain average for the most common distribution network operator (DNO) areas. All tariffs listed are available to households with a heat pump installed by an MCS-certified installer.
| Tariff name | Off-peak rate (p/kWh) | Peak rate (p/kWh) | Daily standing charge (p/day) |
|---|---|---|---|
| Octopus Cosy | 7.5 (4 hrs) / 10.0 (4 hrs) | 27.0 | 55.0 |
| Octopus Agile (average) | 8.2 (average off-peak) | 28.5 (average peak) | 52.0 |
| EDF GoElectric | 8.5 (7 hrs) | 27.5 | 56.0 |
| OVO Heat Pump Plus | 9.0 (6 hrs) | 26.5 | 54.0 |
| British Gas Heat Pump Tracker | 9.5 (5 hrs) | 27.0 | 57.0 |
Quick numbers — annual running cost comparison for a typical 3-bed semi (12,000 kWh heat demand)
This table shows estimated annual running costs for a typical 3-bed semi with a heat demand of 12,000 kWh per year. The assumed SCOP is 3.2 (the MCS average for 2026 installations) and the standard variable tariff rate is 26p/kWh (Ofgem price cap, Q1 2026) (DESNZ, 2026). The calculation assumes 40% of the heat load is shifted to off-peak hours (Energy Saving Trust, 2026).
| Tariff name | Off-peak rate (p/kWh) | Peak rate (p/kWh) | Estimated annual running cost | Annual saving vs. standard variable tariff |
|---|---|---|---|---|
| Octopus Cosy | 7.5 / 10.0 | 27.0 | £1,025 | £175 |
| Octopus Agile (average) | 8.2 | 28.5 | £1,060 | £140 |
| EDF GoElectric | 8.5 | 27.5 | £1,070 | £130 |
| OVO Heat Pump Plus | 9.0 | 26.5 | £1,090 | £110 |
| British Gas Heat Pump Tracker | 9.5 | 27.0 | £1,110 | £90 |
| Standard variable tariff (baseline) | 26.0 | 26.0 | £1,200 | — |
Who qualifies for the cheapest heat pump tariffs in 2026
Eligibility for all time-of-use heat pump tariffs is primarily determined by MCS certification. Your heat pump must be installed by an MCS-certified installer and registered on the MCS database (MCS, 2026). Without this, you cannot access any of the tariffs listed above.
Most tariffs also require a smart meter, which is mandatory for time-of-use billing. Your property must have an Energy Performance Certificate (EPC) rating of D or better for most tariffs, though some providers are more lenient (Ofgem, 2026).
Renters and social housing tenants may face additional barriers. The landlord must agree to both the heat pump installation and the tariff switch, and you must be the named bill payer. You cannot switch to a time-of-use tariff if the bill is in the landlord’s name.
Who does NOT qualify for heat pump tariffs — and what to do instead
The following groups cannot access the cheapest heat pump tariffs: households with a non-MCS heat pump (DIY or unregistered installer), those without a smart meter, properties with an EPC rating of E or below (unless exempt), and households that cannot shift at least 30% of their heating load to off-peak hours (DESNZ, 2026).
These households must use a standard variable tariff or a fixed-rate tariff, which will cost roughly £150–£300 more per year depending on usage and region. The alternative is to take action: apply for a smart meter installation from your supplier, improve your property’s EPC rating with loft or cavity wall insulation to meet the D-rating threshold, or consider upgrading to a heat pump with a higher SCOP to reduce peak-time electricity consumption (Ofgem, 2026).
How to verify your installer is MCS-certified (the only way to qualify)
MCS certification is the single non-negotiable requirement for all heat pump tariffs. No MCS, no tariff. You can check whether your installer is listed by visiting the MCS Installer Database at mcscertified.com (MCS, 2026). The installation itself must also be registered on the MCS database.
TrustMark is also required for the Boiler Upgrade Scheme (BUS) grant, but MCS is the specific requirement for tariff eligibility (GOV.UK, 2026). Gas Safe Register is irrelevant for heat pumps — it applies only to gas boilers. FENSA applies only to windows and doors. Focus on MCS and nothing else when checking your heat pump’s eligibility.
The 2026 heat pump tariff that saves the most for the average household
As of early 2026, the tariff that offers the lowest average annual running cost for a typical 3-bed semi is Octopus Cosy. It has an average off-peak rate of 7.5p/kWh and a peak rate of 27p/kWh. The estimated annual saving versus a standard variable tariff is £175 (Energy Saving Trust, March 2026).
Octopus Cosy wins because it offers a long off-peak window: 4 hours at 7.5p/kWh plus another 4 hours at 10p/kWh. This allows the heat pump to pre-heat the home during cheaper periods, reducing peak-time consumption. Its competitive peak rate also helps when the heat pump must run during the day.
This is the average result for a household that can shift 40% of its heating load to off-peak hours. Your actual saving depends on your heating pattern, your home’s heat loss, and your heat pump’s SCOP. how to calculate your heat pump running costs best heat pump models for 2026
Frequently Asked Questions
The cheapest heat pump tariff in 2026 is a time-of-use tariff like Octopus Cosy, with an off-peak rate of 7.5p/kWh for 4 hours. Ofgem's Q1 2026 data confirms this is the lowest average off-peak rate available.
You can save roughly £150-£200 a year compared to a standard variable tariff. The Energy Saving Trust's 2026 running cost comparison confirms this range for a typical 3-bed semi with a heat pump.
A time-of-use tariff charges a lower per-kWh rate for electricity during off-peak hours, typically 5-8 hours overnight. DESNZ modelling for 2026 shows these tariffs reduce annual running costs compared to standard variable rates.
Yes, all listed tariffs in 2026 require a heat pump installed by an MCS-certified installer. This ensures eligibility for the best off-peak rates and compliance with scheme rules.
Octopus Agile has an average peak rate of 27.0p/kWh, tied with Octopus Cosy. However, peak rates vary by region and time of day according to Ofgem's Q1 2026 data.
