A dedicated heat pump tariff can cut heating costs by 15% to 35% against a standard variable tariff, which for a three-bedroom semi is roughly £240 to £600 a year (Retrofit Planner, 2026). For installers, understanding these tariffs is now part of the job, because the running cost you quote is only as good as the tariff the customer ends up on.
This guide compares the main UK heat pump tariffs in 2026, explains how time-of-use pricing works, and sets out the eligibility rules on MCS certificates and smart meters. Rates move often, so treat the figures as a snapshot and confirm the live numbers before you advise a specific customer.
Key Takeaways
- A dedicated heat pump tariff typically saves 15% to 35% on heating costs, around £240 to £600 a year for a three-bedroom home.
- Cosy Octopus gives three cheap windows a day, roughly 51% below the regional day rate, but a pricey 4pm to 7pm peak.
- Most heat pump tariffs need a smart meter with half-hourly readings, and some ask for MCS evidence.
- OVO Heat Pump Plus closed to new customers on 1 February 2026, so the market shifts quickly.
- The right tariff depends on when the home actually uses heat, which is where installer advice adds real value.
What is a heat pump tariff?
A heat pump tariff is an electricity tariff designed around when a heat pump uses power, usually offering cheaper units during off-peak windows in exchange for higher peak rates. The savings come from time-of-use pricing: run the heat pump and heat the hot water cylinder during the cheap periods, and the annual bill drops sharply.
These tariffs suit heat pumps because a well-designed system can store heat in the fabric of the home and in the cylinder, shifting demand to cheap hours. That flexibility is exactly what an EV or a battery offers on the electricity side, and it is why the smart meter that enables half-hourly billing is a precondition for almost every tariff on this list.
Best heat pump tariffs UK 2026 compared
The market splits between tariffs with fixed cheap windows and those that discount all heat pump use against a regional rate. Cosy Octopus offers three off-peak periods a day, from 4am to 7am, 1pm to 4pm and 10pm to midnight, at around 51% below the regional day rate, with a peak from 4pm to 7pm that costs about 50% more (MoneySuperMarket, 2026). British Gas offers half-price electricity daily from 1pm to 4pm and 12am to 7am.
Other suppliers take different shapes, so the best choice depends on the household's routine. The table below summarises the main options as of August 2026, and every figure should be checked live before you quote it.
- Cosy Octopus: Cheap-rate structure: Three windows daily (4-7am, 1-4pm, 10pm-12am) around 51% below regional day rate; 4-7pm peak
- British Gas Heat Pump: Cheap-rate structure: Half-price electricity 1-4pm and 12am-7am daily
- EDF Heat Pump Tracker: Cheap-rate structure: 10p/kWh below the regional standard rate, 4-7am and 1-4pm
- ScottishPower Heat Pump Saver: Cheap-rate structure: 14p/kWh between 11am and 4pm
- E.ON Next Pumped: Cheap-rate structure: Eight overnight hours near 16.9p/kWh, plus about 13 hours near 21.3p/kWh
The EDF Heat Pump Tracker gives a discount of 10p per kWh against the regional standard rate during its cheap windows (Sunsave, 2026), while E.ON Next Pumped splits the day into super off-peak and off-peak bands (MoneySuperMarket, 2026).
How much can a heat pump tariff save?
Moving from a standard variable tariff to a dedicated heat pump tariff saves 15% to 35% on heating costs, which translates to roughly £240 to £600 a year for a typical three-bedroom home (Cucumber Eco, 2026). The size of the saving depends on how much demand the household can shift into the cheap windows.
The real lever is the heat pump's efficiency combined with load shifting. A system with a high SCOP that heats water and pre-warms the home during cheap hours captures most of the available saving, which is why a good tariff and good design work together. A poorly designed system on a great tariff still disappoints, and that gap is where installer advice earns its keep.
Cosy Octopus versus time-of-use tariffs
Cosy Octopus is purpose-built for heat pumps with fixed daily windows, which makes scheduling simple, while broader time-of-use tariffs such as Octopus Go or Agile are built around variable or overnight pricing that can suit some households better. The choice comes down to routine: a home that can heat mid-afternoon and overnight fits Cosy well.
Households with an EV or a home battery may do better on a blended time-of-use tariff that rewards overnight charging and heat pump use together, and the choice between Octopus Go and Agile-style pricing turns on how predictable the household's demand is (Amp Renewables, 2026). A fixed-window product rewards routine, while a fully dynamic rate rewards households that can respond to changing prices.
Where a home also runs a solar diverter or exports under the Smart Export Guarantee, the tariff maths gets more involved, and the best answer is rarely the headline cheap rate alone. Model the actual usage pattern, not the advert, and remember that a customer who cannot shift load into the cheap windows may save less than the marketing implies.
Do you need MCS certification or a smart meter for a heat pump tariff?
Every heat pump tariff needs a smart meter capable of half-hourly readings, and eligibility beyond that varies by supplier. E.ON Next Pumped and British Gas require a heat pump or electric heating plus a working smart meter rather than MCS paperwork, while EDF may ask you to prove the heat pump by sharing the MCS certificate or a photo of the unit (Cucumber Eco, 2026).
For installers, this is a practical handover point. Make sure the customer has a working smart meter before the heat pump commissioning, because a delayed meter exchange can leave them on an expensive standard tariff for weeks. Keep the MCS certificate accessible too, since it is the fastest proof of eligibility for the tariffs that ask for it. A smooth tariff switch is part of a good handover, not an afterthought.
Does Economy 7 still work with a heat pump?
Economy 7 can work with a heat pump, but it is a blunt instrument compared with modern heat pump tariffs, because its single overnight cheap window rarely matches when a heat pump needs to run in cold weather (IMS Heat Pumps, 2026). A heat pump often needs daytime output on the coldest days, which Economy 7 charges at the expensive rate.
Where a household is stuck on Economy 7, the day rate is usually high enough to erode the overnight saving unless the home has significant heat storage. In most cases a dedicated heat pump tariff or a modern time-of-use tariff beats it. The exception is a very well-insulated home with a large buffer or thermal store that can ride through the day on cheap overnight energy.
How should installers advise customers on tariffs?
Installers should not recommend a single supplier, but should explain how time-of-use pricing interacts with the specific system they have designed. Show the customer which hours their heat pump will mostly run, then let them compare tariffs against that pattern. This keeps you impartial while adding genuine value, and it protects the running-cost figures in your quote.
The running cost in an air source heat pump cost breakdown only holds up if the customer lands on a suitable tariff, so flag it at handover. A one-page note listing the main heat pump tariffs, the smart meter requirement and the MCS evidence step saves a lot of follow-up calls. It also protects your reputation, because a customer who blames high bills on the heat pump when the real problem is the tariff will still leave a poor review.
Set expectations at the quote stage as well as at handover. If a household genuinely cannot run heat during the cheap windows, say so and adjust the projected running cost rather than promising a saving that will not appear. Software like Reonic helps installers keep that customer-facing detail consistent across every job, so the tariff advice matches the design.
Frequently asked questions
What is the best heat pump tariff in the UK in 2026?
There is no single best tariff, because it depends on when the home uses heat. Cosy Octopus suits many heat pump owners with its fixed daily cheap windows, while EDF Heat Pump Tracker and ScottishPower Heat Pump Saver work well for others. Compare each against the household's actual usage pattern and confirm live rates before switching, as offers change frequently.
How much does a heat pump tariff save?
A dedicated heat pump tariff typically saves 15% to 35% on heating costs compared with a standard variable tariff, around £240 to £600 a year for a three-bedroom home. The saving depends on how much demand shifts into cheap windows and on the system efficiency. A high SCOP combined with good load shifting captures most of the available benefit.
Do I need a smart meter for a heat pump tariff?
Yes. Every heat pump tariff requires a smart meter capable of half-hourly readings, because the pricing is based on when electricity is used. Arrange the smart meter exchange before or alongside commissioning so the customer is not left on an expensive standard tariff. Some tariffs also ask for MCS evidence or a photo of the heat pump.
Is Cosy Octopus better than Economy 7 for a heat pump?
For most homes, yes. Cosy Octopus gives three cheap windows spread across the day, including afternoon and overnight, which matches how a heat pump actually runs better than Economy 7's single overnight block. Economy 7 can still suit a very well-insulated home with large heat storage, but for typical retrofits a modern heat pump tariff usually wins.
Can I use a heat pump tariff with solar or an EV?
Yes, and it often improves the maths. A home with solar, a battery or an EV can shift more demand into cheap windows and use its own generation, though the best tariff then depends on the whole system. Time-of-use tariffs that reward overnight EV charging alongside heat pump use can beat a heat-pump-only product for these households.
Choosing a heat pump tariff is really about matching cheap hours to when the home needs heat, and that is a question the installer is best placed to answer. Quote the running cost, name the smart meter and MCS steps, and point the customer at the two or three tariffs that fit their pattern. The rates will change, but that method does not.
