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Heat pump tariffs offer cheaper electricity at certain times. In 2026, Octopus Cosy, OVO Heat Pump Plus, and E.ON Next Drive offer varying rates. The £7,500 is the maximum grant under the Boiler Upgrade Scheme, not a tariff discount. The figures above are as published by the named sources on the review date and are checked against the tables in
Heat pump tariffs offer cheaper electricity at certain times, but the £7,500 is the Boiler Upgrade Scheme grant, not a tariff discount.
KEY FACTS
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LAST REVIEWED 2026-09-06
What makes a heat pump tariff different?
Heat pump tariffs offer lower electricity rates during off-peak hours, encouraging use when demand is low. Unlike standard tariffs, they often have higher peak rates. These tariffs are designed for homes with heat pumps, which use electricity to provide heating and hot water.
The main difference is the time-of-use structure. For example, Octopus Cosy has three off-peak periods, OVO Heat Pump Plus has one, and E.ON Next Drive has a six-hour window. These windows typically occur at night and sometimes in the afternoon.
Standing charges may also differ. Some tariffs have no exit fees, while others require a smart meter. It is important to check if your heat pump is compatible and if you can shift your usage to off-peak times.
Compared to the standard variable tariff, which is capped by Ofgem, heat pump tariffs are not capped but are often cheaper for heat pump users. The typical dual fuel bill under the cap is £1,663 from July 2026, but this is for gas and electricity, not heat pump only.
Octopus Cosy 2026: rates and structure
Octopus Cosy is a time-of-use tariff with three off-peak periods each day. These are typically 4am-7am, 1pm-4pm, and 10pm-1am, but exact times vary by region. The off-peak rate is lower than the peak rate, which applies during other hours.
For a typical household, the off-peak rate might be around 12p per kWh, but this is not confirmed. The peak rate is higher, often around 30p. Standing charges are similar to standard tariffs.
To benefit, you need a smart meter and must shift your heating and hot water to off-peak times. Octopus claims savings for heat pump users, but actual savings depend on your usage pattern.
Compared to the price cap, which is £1,663 for typical dual fuel, Octopus Cosy may be cheaper if you use most electricity off-peak. However, the cap is not a direct comparison because it includes gas.
| Supplier | Owner | Standard variable tariff | Source |
|---|---|---|---|
| British Gas | Centrica | not published | supplier site |
| E.ON Next | E.ON | Next Flex | supplier site |
| EDF | EDF | not published | supplier site |
| Octopus Energy | Octopus | Flexible Octopus | supplier site |
| OVO | OVO | not published | supplier site |
| ScottishPower | Iberdrola | not published | supplier site |
| So Energy | ESB | not published | supplier site |
| Utilita | Utilita | not published | supplier site |
| Utility Warehouse | Telecom Plus | not published | supplier site |
| Fuse Energy | Fuse | not published | supplier site |
| Outfox the Market | Outfox | not published | supplier site |
| Rebel Energy | Rebel | not published | supplier site |
OVO Heat Pump Plus 2026: rates and structure
OVO Heat Pump Plus offers a single off-peak window, typically from 1am to 7am. During this time, electricity is cheaper. Outside these hours, you pay a higher rate. This tariff is designed for heat pump owners who can heat their home overnight.
The off-peak rate is not published, but it is likely to be lower than the standard variable rate. The peak rate is higher. Standing charges are similar to other tariffs.
To benefit, you need a smart meter and must set your heat pump to run mainly during the off-peak window. This may not suit everyone, as heat pumps often need to run during the day in cold weather.
Compared to the price cap, which is £1,663 for typical dual fuel, OVO Heat Pump Plus could be cheaper if you use most electricity at night. However, the cap is not a direct comparison because it includes gas.
E.ON Next Drive + Heat 2026: rates and structure
E.ON Next Drive + Heat is a tariff that combines off-peak electricity for both electric vehicles and heat pumps. It offers a six-hour off-peak window, typically from 10pm to 4am. During this time, electricity is cheaper.
The off-peak rate is not published, but it is likely to be lower than the standard variable rate. The peak rate is higher. Standing charges are similar to other tariffs.
To benefit, you need a smart meter and must charge your EV and heat your home during the off-peak window. This tariff is suitable for households with both an EV and a heat pump.
Compared to the price cap, which is £1,663 for typical dual fuel, E.ON Next Drive + Heat could be cheaper if you use most electricity at night. However, the cap is not a direct comparison because it includes gas.
Cost comparison at typical consumption
To compare costs, consider a typical household using 2,500 kWh of electricity per year for a heat pump. Under the price cap, the typical dual fuel bill is £1,663, but that includes gas. For electricity only, the cap is not directly comparable.
Heat pump tariffs often have lower off-peak rates, but higher peak rates. However, actual savings depend on your usage pattern and the specific rates.
That is lower than the typical standard variable rate, which is around 24p per kWh, but not confirmed.
It is important to check the exact rates for your region and compare them to the standard variable tariff. The £7,500 is the Boiler Upgrade Scheme grant, which is separate from tariff savings.
Which heat pump tariff should you choose?
Choosing a heat pump tariff depends on your heating patterns and whether you have an EV. Octopus Cosy offers three off-peak periods, which may suit homes that need heat during the day. OVO Heat Pump Plus has a single overnight window, ideal for those who can heat overnight. E.ON Next Drive + Heat is best for EV owners.
Consider your ability to shift usage. If you cannot run your heat pump mainly off-peak, you may not save money. Also, check if the tariff requires a smart meter and if there are exit fees.
Compare the standing charges and unit rates to the standard variable tariff. The price cap typical bill is £1,663 from July 2026, but that is for dual fuel. For electricity only, the cap is not directly comparable.
Remember, the £7,500 is the Boiler Upgrade Scheme grant, not a tariff discount. It is available to help with the cost of installing a heat pump, not for running it.
| Cap period | Typical dual fuel, Direct Debit | Change | Source |
|---|---|---|---|
| Jul to Sep 2026 | £1,663 | Ofgem | |
| Oct to Dec 2026 | £1,723 | 4% | Ofgem |
| From 1 Jan 2027 | to be announced late November 2026 | Ofgem |
What is the Boiler Upgrade Scheme and how does it relate to tariffs?
The Boiler Upgrade Scheme provides a grant of £7,500 towards the cost of installing a heat pump in England and Wales. This grant is separate from energy tariffs. It is designed to reduce the upfront cost of heat pump installation.
The grant is not a discount on your energy bills. It is paid to the installer, who then reduces the cost of the heat pump. You must apply through an MCS-certified installer.
Heat pump tariffs are ongoing electricity tariffs that offer cheaper rates for heat pump users. They are not related to the grant. You can benefit from both the grant and a heat pump tariff.
When comparing tariffs, consider the unit rates and standing charges. The £7,500 grant does not affect your tariff choice, but it does reduce the initial cost of going green.
How do heat pump tariffs compare to the energy price cap?
The energy price cap sets a maximum rate for standard variable tariffs. From July 2026, the typical dual fuel bill is £1,663. However, heat pump tariffs are not capped, so they can be higher or lower.
Heat pump tariffs often have lower off-peak rates but higher peak rates. If you use most electricity off-peak, you may pay less than the cap. If you use a lot during peak, you may pay more.
The cap is for dual fuel, including gas. Heat pump tariffs are for electricity only. To compare, you need to look at the electricity unit rates and standing charges.
For example, if the cap's electricity rate is around 24p per kWh, a heat pump tariff with an off-peak rate of 12p and peak of 30p could be cheaper if you shift usage. But this is not guaranteed.
What should you check before switching to a heat pump tariff?
Before switching, check if your heat pump is compatible with the tariff. Some tariffs require a smart meter. Also, check the off-peak times and whether they suit your lifestyle.
Look at the unit rates and standing charges. Compare them to your current tariff and the price cap. Consider your annual electricity usage and how much you can shift to off-peak.
Check for exit fees. Some tariffs have no exit fees, while others may charge. Also, check if the tariff is available in your area.
Remember, the £7,500 Boiler Upgrade Scheme grant is for installation, not for running costs. It does not affect your tariff choice, but it does reduce the upfront cost of a heat pump.
Glossary: the terms on an energy bill explained
Heat pump tariff: An electricity tariff with lower rates during off-peak hours, designed for homes with heat pumps.
Off-peak: Times when electricity demand is low, typically at night, when tariffs offer cheaper rates.
Standing charge: A fixed daily cost for electricity supply, paid regardless of usage.
Smart meter: A digital meter that records energy usage in real time, enabling time-of-use tariffs.
Boiler Upgrade Scheme: A UK government grant of £7,500 to help with the cost of installing a heat pump.
Price cap: A limit on the maximum rate energy suppliers can charge for standard variable tariffs.
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Disclaimer. This guide is editorial information drawn from primary sources. It is not financial, legal or tax advice and does not recommend any provider. Figures are those published by the named sources on the review date and may change. Kael Tripton Ltd receives no commission, referral fee or lead payment from any provider named on this page. |
Frequently asked questions
What is the £7,500 in heat pump tariffs?
The £7,500 is the maximum grant available under the Boiler Upgrade Scheme in England and Wales. It is not a discount on your energy tariff. It is paid to the installer to reduce the cost of buying and installing a heat pump. You can still choose a heat pump tariff to save on running costs, but the grant is separate.
Are heat pump tariffs cheaper than standard tariffs?
Heat pump tariffs can be cheaper if you use most electricity during off-peak hours. They often have lower off-peak rates but higher peak rates. Compared to the price cap, which is £1,663 for typical dual fuel, a heat pump tariff might be cheaper for electricity-only use, but it depends on your usage pattern.
Do I need a smart meter for a heat pump tariff?
Yes, most heat pump tariffs require a smart meter to track your usage at different times. The smart meter sends half-hourly readings to your supplier, allowing them to charge different rates for off-peak and peak hours. Without a smart meter, you cannot benefit from time-of-use tariffs.
Can I switch to a heat pump tariff if I don't have a heat pump?
Some suppliers may allow you to switch, but the tariff is designed for heat pump users. If you don't have a heat pump, you might not benefit from the off-peak rates, as you may not be able to shift your electricity usage. Check with the supplier for eligibility.
What are the off-peak times for Octopus Cosy?
Octopus Cosy has three off-peak periods each day, typically 4am-7am, 1pm-4pm, and 10pm-1am. These times can vary by region and are subject to change. Check the Octopus website for exact times in your area.
Is the £7,500 grant available in Scotland?
The Boiler Upgrade Scheme is available in England and Wales. Scotland has its own scheme, which may offer different amounts. As of 2026, the £7,500 grant is for England and Wales only. Check the Scottish government website for details.
