Grant rules checked against Ofgem on 15 October 2026
Heat pump tariffs: how cheaper electricity plans for heat pumps work
Published and last updated 15 October 2026
A heat pump tariff is an electricity plan, usually a time-of-use tariff, that charges less at set times so your heat pump can heat the home and hot water when power is cheapest. The Energy Saving Trust says running costs on a standard tariff can be slightly higher than a new gas boiler, but on a heat pump time-of-use tariff they can be lower.
What types of heat pump tariff are there?
There are four main types: multi-window time-of-use tariffs, overnight off-peak tariffs, Economy 7 and standard single-rate tariffs.
| Type | How it works | Best for |
|---|---|---|
| Multi-window time-of-use | Several cheap periods a day and a pricier evening peak | Homes that can schedule heating and hot water |
| Overnight off-peak | One cheap overnight window | Homes with an EV or battery as well as a heat pump |
| Economy 7 | Seven cheaper night hours on an older two-rate meter | Homes with high overnight use |
| Standard single rate | One price all day | Homes that can't shift when they use power |
How does a multi-window tariff work?
It gives you several cheap periods across the day and one expensive peak, so the heat pump pre-heats the home and cylinder before the peak.
Rates and windows change; check the supplier's tariff information label before switching.
Do you need a smart meter?
Yes, almost every time-of-use heat pump tariff needs a smart meter that sends half-hourly readings, such as a SMETS2 or secure SMETS1 meter.
How do you get the most from a heat pump tariff?
Schedule hot water and pre-heating for the cheap periods and avoid running hard during the peak.
- heat the cylinder in a cheap window
- let the home warm slightly before the peak
- use weather compensation
- check your app's usage data after a month
Should you drop your gas supply?
If a heat pump replaces all your gas use, closing the gas account removes the gas standing charge, currently 29.68p a day under Ofgem's price cap.
How much could a tariff save you?
Savings depend on your home's heat demand, how much use you can shift and your region's rates, so model your own figures.
What about a standard single-rate tariff?
A single-rate tariff is simpler and can suit homes that can't shift their use, but it gives up the cheaper periods that make heat pumps cheapest to run.
Frequently asked questions
Does switching tariff affect my Boiler Upgrade Scheme grant?
No, your tariff is separate from the grant.
Can I switch before my heat pump is installed?
Most heat pump tariffs require the heat pump to be in place, so switch after installation.
Is a heat pump tariff worth it with solar panels?
Often, because the battery or solar can cover daytime use while the cheap windows cover the rest.