Best Electricity Tariffs for Heat Pump Owners in 2026

Why Does Your Electricity Tariff Matter for a Heat Pump?

Choosing the right electricity tariff can save a heat pump owner £300–600 per year compared to remaining on a standard variable tariff. This matters because a heat pump uses significantly more electricity than a typical household — typically 3,000–4,500 kWh/year for space heating in an average UK home. At the Ofgem April 2026 price cap rate of 24.5p/kWh, that equates to £735–£1,103/year in electricity costs for heating alone. Moving to a specialised off-peak tariff can reduce the effective per-unit cost considerably, making the difference between a heat pump that saves you money and one that costs more than a gas boiler.

According to Nesta research (2025), households with heat pumps that switch to a time-of-use tariff save an average of £226/year compared to those on standard variable tariffs — and this figure rises when a heat pump owner also has solar panels or battery storage, enabling smarter energy shifting.

How a Heat Pump Uses Electricity — and Why Timing Matters

Heat pumps do not use electricity the same way a kettle or immersion heater does. They draw power continuously at a relatively low rate — typically 1–2 kW of electrical input — to move heat into your home. Because they run for extended periods (often 8–16 hours per day in winter), small differences in per-unit electricity costs have a large cumulative effect.

Most modern heat pumps, when paired with a suitable hot water cylinder, can be programmed to run intensive cycles (particularly for hot water heating) at set times. This means you can schedule the highest-consumption periods to fall in cheap off-peak windows. A well-insulated home with a correctly sized heat pump can absorb enough heat during off-peak hours that only minimal top-up heating is needed during peak periods.

Octopus Cosy: Designed for Heat Pump Owners

Octopus Cosy is widely regarded as the best starting tariff for most heat pump owners in 2026. It is specifically designed around the patterns of heat pump operation and offers three daily off-peak windows at reduced rates:

• 09:00–11:00 (cheap rate)
• 14:00–16:00 (cheap rate)
• 02:00–05:00 (cheap rate, sometimes called the “super off-peak” window)

Peak rate hours are in the evenings (typically 16:00–19:00). Outside peak and off-peak windows, a mid-rate applies.

The advantage of Octopus Cosy over Economy 7 is the two daytime cheap windows, which align well with times when your heat pump can top up heat stored in the buffer tank or run intensive hot water cycles without disrupting the household. The evening peak window is relatively short, making it easier to schedule heating away from peak.

Published rates for Octopus Cosy as of April 2026 are approximately 18–20p/kWh for off-peak periods and 34–38p/kWh at peak. Always check Octopus Energy’s website for current rates as they adjust quarterly in line with the Ofgem price cap.

Octopus Intelligent: The EV and Heat Pump Charger

Octopus Intelligent was originally designed for electric vehicle (EV) owners but works well for heat pump owners with compatible smart equipment. It offers a flat overnight off-peak rate from 23:30–05:30 at around 6–7p/kWh (as of early 2026) — one of the cheapest available rates on the UK market.

The catch: Octopus Intelligent currently requires an Intelligent-compatible EV or charger to access the ultra-cheap overnight rate. Heat pump owners without an EV may not qualify for the lowest rate, though Octopus has been expanding the tariff’s eligibility. Check directly with Octopus for current eligibility criteria.

For heat pump owners who also have an EV, Octopus Intelligent can deliver very low effective heating costs by scheduling both the vehicle charging and heat pump hot water cycles into the cheap overnight window.

Economy 7: The Traditional Off-Peak Option

Economy 7 is a long-established tariff (available from most suppliers) that provides 7 hours of cheap overnight electricity, typically from midnight to 07:00 (times vary by supplier and region). During cheap hours, rates are typically 50–60% lower than the standard rate.

In 2026, Economy 7 off-peak rates are approximately 10–14p/kWh (compared to 24.5p/kWh standard rate). The standard daytime rate on Economy 7 is, however, slightly higher than the standard variable rate — often 27–32p/kWh — which means if your heat pump runs substantially during the day, you could end up paying more than on a standard tariff.

Economy 7 works best for heat pump owners who: - Have a well-insulated property that can retain heat from overnight charging - Have a large hot water cylinder that can be fully heated overnight - Have buffer tank capacity to store thermal energy heated during cheap hours

Older properties with lower insulation levels may struggle to retain overnight heat into the late afternoon, making Economy 7 less effective than a tariff with multiple daily cheap windows.

Octopus Agile: The Variable-Rate Option

Octopus Agile is a half-hourly tariff where electricity prices track the wholesale market and update every 30 minutes. Prices are published the evening before, allowing you to plan your heat pump’s intensive cycles (particularly hot water) around the cheapest half-hours.

Agile can deliver very low average costs for tech-savvy users with smart home energy management systems (HEMS) — such as the Loxone or Homely systems that integrate directly with heat pumps and Agile pricing. According to Octopus Energy data (2025), the average Agile user paid approximately 16–19p/kWh over the course of a year, compared to 24.5p at the Ofgem cap rate.

Agile is less suitable for households that need consistent comfort without active management. Prices can occasionally spike to 35–50p/kWh during high-demand periods (typically cold snaps in winter evenings), which can drive up costs if your heat pump is running hard at those times.

Tariff Comparison Table

Note: All rates are approximate as of April 2026. Tariff rates change quarterly. Always verify current rates with your supplier before switching.

Real-World Running Cost Example: 3,500 kWh Heat Pump

A typical 3-bedroom semi-detached home in the TW area with an air source heat pump uses approximately 3,500 kWh of electricity per year for space heating (based on a system COP of 3.0 and 10,500 kWh annual heat demand, as estimated by the Energy Saving Trust for a medium-insulated UK home).

Note: Blended rates depend heavily on how much of your consumption falls in each pricing window. Results vary significantly by household and heat pump programming.

The Octopus Intelligent example assumes the majority of heating and hot water loads can be scheduled into the overnight window — which is realistic for well-insulated homes with large thermal stores but may not be achievable in all properties.

Combining a Heat Pump Tariff with Solar Panels

If you have — or are considering — solar panels alongside your heat pump, your tariff choice becomes even more important. Solar panels generate electricity during daylight hours, which overlaps with the Octopus Cosy daytime off-peak windows (09:00–11:00 and 14:00–16:00). During these windows, you can run your heat pump on cheap grid electricity while simultaneously generating and self-consuming solar electricity.

A heat pump and solar combination with Octopus Cosy can significantly reduce your net heating electricity cost — especially in the shoulder seasons (spring and autumn) when your heat pump is running but solar generation is still good. For a full analysis of the heat pump and solar combination, read our guide to solar panels and heat pumps as the perfect energy combination.

Local Context: Tariff Choice in London and Surrey

Residents in the TW postcode area are covered by UK Power Networks (UKPN) as their distribution network operator. Octopus Cosy, Intelligent, and Agile are all available in this area. Economy 7 is available through all major suppliers. There are no regional restrictions on tariff access for homeowners in Hampton, Twickenham, Richmond, Kingston, or Sunbury-on-Thames.

One local consideration: some older properties in the TW area — particularly Victorian and Edwardian terraces common in Twickenham and Richmond — may have lower insulation levels and struggle to retain heat adequately through overnight-only charging. In these cases, a tariff with multiple daytime cheap windows (such as Octopus Cosy) may outperform Economy 7 even though its off-peak rate is higher.

For a full picture of heat pump running costs, see our detailed guide to what you actually pay in heat pump running costs in 2026. And if you are still weighing up whether a heat pump is right for your property, our guide to how much a heat pump costs in the UK in 2026 covers the full financial picture including the BUS Grant.

How Electromatic Can Help

Electromatic M&E Ltd installs air source heat pumps across London and the Surrey TW area. As part of every installation, we advise on the most suitable electricity tariff for your property and heat pump model, and we configure your system controls to maximise performance during off-peak windows. We work under MCS certification via our accredited umbrella partner, and we handle the full project from BUS Grant application through to commissioning and handover — including a full walkthrough of your tariff options on the day of installation.

Book your free home survey →

Call us: 07718 059 284 | Email: admin@electromatic.uk

Frequently Asked Questions

What is the best electricity tariff for a heat pump in the UK in 2026?

For most heat pump owners, Octopus Cosy is the most suitable tariff in 2026. It offers three daily off-peak windows at reduced rates, which align well with heat pump operation patterns. Octopus Intelligent is better for households with an EV, offering cheaper overnight rates. Economy 7 suits well-insulated homes where most heating can be shifted overnight.

Can I use Economy 7 with a heat pump?

Yes. Economy 7 can work well with a heat pump, particularly in well-insulated homes with a large hot water cylinder or buffer tank that can be fully charged overnight during the cheap hours. The main risk is that Economy 7 daytime rates are higher than standard rates, which can increase costs if your heat pump needs to run extensively during the day.

How much can I save by switching to a heat pump tariff?

Switching from a standard variable tariff to an optimised heat pump tariff can save £200–600 per year, depending on your heat pump’s electricity consumption, your property’s insulation level, and how much of your consumption you can shift to off-peak windows. The more flexible your heat pump scheduling, the greater the saving.

Does Octopus Cosy work with all heat pump brands?

Yes. Octopus Cosy is a general electricity tariff — it is not limited to specific heat pump brands. However, to make the most of the off-peak windows, your heat pump must have programmable controls (either built-in or via a smart thermostat) that allow you to schedule intensive cycles (especially hot water) during the cheap windows.

Will tariff rates change in 2026?

Yes. Electricity tariff rates in the UK adjust quarterly in line with the Ofgem price cap. The rates quoted in this article are based on the April 2026 price cap and will change at subsequent quarterly reviews. Always check current rates directly with your supplier before switching tariffs.

The information in this article is for general guidance only and does not constitute financial, legal, or technical advice. Energy savings estimates are based on typical UK household data from the Energy Saving Trust and Ofgem (April 2026 price cap). Actual savings depend on your property type, insulation levels, energy usage patterns, and electricity tariff. The Boiler Upgrade Scheme (BUS) grant of £7,500 is subject to eligibility criteria set by Ofgem — not all properties qualify. Electromatic M&E Ltd operates under MCS certification via an accredited umbrella partner. All installations comply with Building Regulations Part L and MCS standards. E&OE.

Last updated: April 2026 | Electromatic M&E Ltd, Company No. 13837345

Written by Electromatic M&E Ltd — ASHP & Solar installer, London & Surrey (electromatic.uk)