Installing a heat pump is one of the biggest steps you can take towards reducing your home’s carbon emissions, but it’s also a great opportunity to review how you buy your electricity.

Many homeowners continue using the same electricity tariff they had before installing their heat pump. While there’s nothing wrong with that, it may mean you’re missing out on a tariff that’s better suited to your new heating system. If you’re new to heat pump tariffs, our guide to understanding heat pump tariffs explains how they work and what to consider when comparing your options.

As more UK energy suppliers introduce tariffs designed for homes with low-carbon technologies, it’s worth taking a fresh look at your options.

Why your electricity tariff matters

Unlike a gas or oil boiler, a heat pump uses electricity to provide heating and hot water. Thanks to the way heat pumps work, they can deliver several units of heat for every unit of electricity they consume, making them an efficient way to heat your home.

However, the electricity tariff you choose still plays an important role in your overall running costs.

Reviewing your tariff doesn’t necessarily mean switching supplier. Your current supplier may already offer a tariff that’s better suited to homes with heat pumps.

The growth of smart electricity tariffs

Over the past few years, energy suppliers have developed a growing range of smart tariffs designed to encourage electricity use outside of peak demand periods.

These tariffs often offer lower electricity prices during selected times of the day, balanced by higher prices during busier periods.

For many households with heat pumps, especially those with well-designed heating systems that run steadily throughout the day, these tariffs may be worth exploring.

Heat pumps work differently

One common misconception is that a heat pump should only run when electricity is at its cheapest.

In reality, most heat pumps operate most efficiently by maintaining a consistent indoor temperature rather than heating the home in short bursts.

A well-designed system, with correctly sized radiators or underfloor heating and appropriate controls, will generally deliver the best combination of comfort and efficiency.

Your electricity tariff should complement how your heating system operates, rather than dictate how you use it.

What should you compare?

If you’re reviewing your electricity deal, look beyond the headline unit rate.

Consider:

  • Unit rates during both peak and off-peak periods.
  • Daily standing charges.
  • Whether the tariff suits your household’s daily routine.
  • Eligibility requirements.
  • Whether you have solar PV, battery storage or an electric vehicle.
  • Any exit fees or contract terms.

Looking at the overall picture will help you choose a tariff that fits your lifestyle rather than simply chasing the lowest advertised price.

Smart meters and eligibility

Many smart tariffs require:

  • A compatible smart meter.
  • Half-hourly electricity meter readings.
  • Eligibility checks by the supplier.

Requirements vary between suppliers, so it’s important to confirm that you’re eligible before switching.

If you also have solar panels or battery storage

Reviewing your tariff becomes even more worthwhile if you’ve added solar PV or battery storage to your home.

Battery systems can store electricity generated by your solar panels or charge when electricity prices are lower, helping reduce the amount of electricity you buy during more expensive periods.

Choosing a tariff that works alongside your home’s technologies can help you get the most from your overall energy system.

There’s no single “best” tariff

One of the questions we’re asked most often is:

“Which electricity tariff is best for a heat pump?”

The honest answer is that there’s no single tariff that’s right for every household.

The most suitable option depends on factors such as:

  • Your home’s insulation.
  • Your heating system design.
  • Your electricity usage.
  • Whether anyone is home during the day.
  • Whether you own an electric vehicle.
  • Whether you have solar PV or battery storage.

As energy suppliers regularly update their products, it’s worth reviewing your tariff from time to time rather than assuming the tariff you chose last year is still the most appropriate.

We’re seeing more choice than ever

The number of tariffs designed for low-carbon homes continues to grow.

Many suppliers now offer products aimed at households with heat pumps, electric vehicles or battery storage, giving homeowners more flexibility than ever before.

Rather than focusing on one supplier or one specific tariff, it’s sensible to compare what’s currently available and consider which option best suits your household’s energy use.

How IMS Heat Pumps can help

While we don’t recommend specific energy suppliers or tariffs, we’re always happy to explain how different types of electricity tariffs work and how they may interact with your heating system.

A well-designed heat pump should operate efficiently on a range of electricity tariffs. Choosing the right tariff can help maximise the benefits of your system, but the quality of the installation, system design and commissioning remain just as important.

If you’re considering installing a heat pump, or you’ve recently had one fitted and would like advice on getting the most from your system, our team is always happy to help. You can also read our guide to heat pump funding to see what grants may currently be available.

Frequently Asked Questions

Should I change my electricity tariff after installing a heat pump?

It’s worth reviewing your options. Your existing tariff may still be suitable, but many suppliers now offer products specifically designed for homes with low-carbon heating.

Will changing tariff reduce my bills?

Potentially, but it depends on your household’s electricity usage and the tariff you choose. There are no guarantees, and savings will vary between homes.

Do I have to switch supplier?

No. Many suppliers offer several tariffs, so you may be able to move to a different tariff without changing supplier.

Is a smart tariff right for everyone?

Not always. Some households benefit more than others, depending on how and when they use electricity.

Disclaimer

Electricity tariffs, prices, eligibility criteria and tariff structures are subject to change. Some smart tariffs require a compatible smart meter, half-hourly meter readings and eligibility checks. This article is intended as general guidance only. Always refer to the relevant energy supplier for the latest tariff information, terms and conditions before making a decision.