As heat pumps become more common, several energy providers have started to offer specific electricity tariffs for those who own one.

These deals, referred to as ‘heat pump tariffs’ or ‘heat pump electricity tariffs’ work in various ways but can ultimately reduce the cost of heating your home with electricity when compared to a regular tariff.

If you’re thinking of getting a heat pump installed, combining a heat pump tariff with a government grant can make the prospect of owning one very enticing. ‍

Snugg customers can log into their dashboard to see how much they could save by installing a heat pump with a special electricity tariff.

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What is a heat pump tariff?  

A heat pump tariff is a special electricity rate that some energy suppliers offer homeowners who have a heat pump installed.

Utility companies offer these discounted tariffs to encourage more homeowners to install heat pumps, which are greener and more energy efficient than many other forms of heating.

The heat pump electricity tariff can work in two ways:

• ‍Time-of-use tariffs: These offer cheaper electricity at specific times of the day ‍
• Type-of-use tariffs: These charge a lower rate for the electricity used exclusively by your heat pump

Because heat pump tariffs charge reduced electricity rates, you’ll see the cost of heating your home fall in many cases. But remember, even discounted electricity rates can be more expensive per kWh than a gas boiler. So, you’ll need to compare the costs carefully if you’re moving from a gas boiler - read more about this in our heat pump guide.

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Who are heat pump tariffs for?  

Heat pump tariffs are designed for people who have an air source or ground source heat pump installed (or planned to get one installed) in their home.

To get a heat pump tariff:

• You’ll need to have a heat pump that’s installed and operational
• Your heat pump must be compatible with the tariff (some tariffs only work with specific heat pump manufacturers)
• A smart meter must be installed and operational in your home (this allows your energy supplier to track when and how you use electricity)

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What’s the best heat pump tariff in the UK?  

Energy providers change their heat pump electricity tariffs every now and again, just like they change their other tariffs occasionally. So, make sure you compare your options!

The best heat pump tariff will depend on your needs. For example:

• A time-of-use tariff (such as one offered by Octopus Energy) might be suitable if you can restrict your heat pump's usage to off-peak hours. Your installer can advise you if this might be possible.
• A type-of-use tariff (such as one offered by OVO Energy) might be more suitable if you cannot easily limit your heat pump's usage to specific times, as the cost of electricity will always be cheaper when used to power your heat pump.

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What's the cheapest heat pump tariff in the UK?  

At the time of writing, British Gas offers the lowest heat pump electricity rate in the UK, at 14p per kWh. But this is only available for the first year of buying and installing your heat pump through them.

OVO’s Heat Pump Plus tariff and Scottish Power’s Heat Pump Saver tariff are both 15p per kWh, though Scottish Power only offers this rate during off-peak hours.

But bear in mind that energy suppliers change their rates throughout the year, and these rates are only accurate at the time of writing. As always, do your research before committing!

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Which energy companies offer the best heat pump tariffs?

Special discounted heat pump electricity tariffs are offered by a range of energy providers, including British Gas, EDF Energy, Octopus Energy, OVO Energy and Scottish Power.

At the time of writing, you could pay as little as 7p per kWh or £1 per kWh depending on the smart tariff you use and when you use your energy. There is alot of variation between the offerings, including how the pricing is calculated - some charge a flat rate at certain times, others charge only for the electricity the heat pump uses (rather than a blanket rate for all appliances), and others offer a percentage discount on their standard energy price rather than a specific cost per kWh.

Therefore, always do your own research before choosing a heat pump tariff. Consider your heating needs and daily routine to make sure you decide on the right type of heat pump electricity tariff.

Find out how to make your home more energy efficient with our free energy efficiency plan.