Guide · Running costs
Heat pump electricity tariffs in the UK
The single biggest lever on your running cost after system design.
Dedicated UK heat pump tariffs price off-peak electricity well below the Ofgem capped rate of around 27p/kWh, which typically cuts annual heat pump running costs by 20–35% versus a standard variable tariff. Eligibility normally requires a smart meter, an MCS-certified heat pump and, on some tariffs, a compatible smart control.
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How heat pump tariffs work
Most are time-of-use products: a block of cheap hours (often overnight and early afternoon) alongside a standard or slightly higher peak rate. You shift hot water reheats and, where the house has enough thermal mass, some space heating into the cheap window.
A few suppliers offer a separate low rate applied only to metered heat pump consumption, which requires a second meter or an approved measurement device.
What to check before switching
- The peak rate, not just the headline off-peak rate.
- Standing charge, which is often higher on time-of-use products.
- Whether the tariff requires a specific brand of controller.
- Exit fees and how long the rate is fixed for.
- Whether your smart meter is in smart mode and sending half-hourly data.
Getting the most from off-peak hours
- Schedule the hot water cylinder reheat inside the cheap window.
- Use weather compensation so the house coasts through peak hours.
- Avoid boosting the cylinder at peak times unless you have to.
- Review consumption monthly for the first winter and adjust the schedule.
Frequently asked questions
- Do I need a special tariff for a heat pump?
- No, but a time-of-use or heat pump tariff usually cuts running costs by 20–35% compared with a standard variable rate.
- Do heat pump tariffs need a smart meter?
- Yes. Time-of-use pricing requires half-hourly settlement data from a smart meter in smart mode.
- Can I stay on my current tariff?
- You can, and the heat pump will work normally — you simply pay the standard unit rate for all consumption.
- Ofgem — UK energy regulator — current electricity unit rates and standing charges.
- Energy Saving Trust — Heat pump efficiency, running cost and SCOP benchmarks (UK).
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