How the Right Energy Tariff can make your Heat Pump even cheaper to Run
One of the biggest benefits of installing an air source heat pump is its exceptional efficiency. But what many homeowners don’t realise is that choosing the right heat pump tariff can make a huge difference to the cost of running your heating system.
With several UK energy suppliers now offering dedicated heat pump tariffs, households can further reduce their heating costs by taking advantage of cheaper electricity at certain times of day.
At Aura Retrofit, we always encourage homeowners to consider their energy tariff alongside their heating system, as the right combination can maximise both efficiency and savings.
What Are Heat Pump Tariffs?
Heat pump tariffs are special electricity tariffs designed for homes using low-carbon heating systems, such as air source heat pumps.
Instead of charging the same electricity price all day, these tariffs use time-of-use pricing, where electricity costs less during certain periods when demand on the national grid is lower.
These cheaper periods often include:
- Overnight hours
- Midday periods when renewable energy generation is high
- Late evening
Because heat pumps work best when they run slowly and consistently, they are perfectly suited to this style of tariff.
Why Heat Pumps Are So Efficient
Air source heat pumps don’t create heat in the same way a boiler does. Instead, they capture heat from the outside air and transfer it into your home.
In simple terms, they work in reverse to a fridge.
A fridge removes heat from inside the appliance and releases it into the room. A heat pump does the opposite — absorbing heat from the outside air, compressing it to increase the temperature and transferring it into your home’s heating system.
This process is incredibly efficient. For every unit of electricity used, a heat pump can produce three to four units of heat, making them around 300–400% efficient.
Most of the energy used by a heat pump occurs during the coldest months of the year — typically December, January and February — when your home needs the most heating. Even during these months, their efficiency remains significantly higher than traditional heating systems.
You can learn more about how these systems operate in our guide to how air source heat pumps work on the Aura Retrofit website.
How Heat Pump Tariffs Reduce Running Costs
When a highly efficient heat pump is paired with a smart electricity tariff, the savings can be substantial.
For example:
- A typical standard electricity tariff may cost around 27p per kWh
- Heat pump tariffs can offer electricity for much lower prices during off-peak periods
Because heat pumps heat homes gradually and maintain a steady temperature, they can take advantage of these cheaper periods to heat your home more economically.
This can reduce heating costs by hundreds of pounds per year, depending on the property size and heating demand.
Octopus Energy and Heat Pump Tariffs
One of the most innovative energy suppliers in the UK for heat pump households is Octopus Energy.
Octopus has developed several tariffs specifically designed to work well with heat pumps.
Cosy Octopus Tariff
The Cosy Octopus tariff was designed specifically for homes with heat pumps.
It offers three cheaper electricity windows every day, typically during:
- Early morning
- Early afternoon
- Late evening
These lower-cost periods allow heat pump systems to run when electricity is cheaper, helping homeowners reduce their overall heating costs.
Many households use these periods to:
- Heat their hot water cylinder
- Warm the home slightly more during cheaper energy windows
- Allow their heating system to run more intensively at lower cost
Because heat pumps maintain temperature gradually, the warmth produced during cheaper periods can carry through the rest of the day.
Get £50 credit when you switch to Octopus Energy!
You could receive £50 off your first bill when you sign up to an Octopus Energy Trusted Partner Tariff with Aura Retrofit.
Click the button below, complete the short form and get your quote for cheaper, greener energy and receive £50 off your first bill.
Backed by the Energy Switch Guarantee, you can be confident that things will run smoothly and that you’re making the right move.
Please note that new customers must first be on supply with Octopus Energy and the first Direct Debit must taken before you will be eligible for the bill credit or switch to any of the Smart or Intelligent Tariffs.
Other Energy Tariffs for Heat Pump Homes
As more households switch to low-carbon heating, other suppliers are also launching heat pump-friendly tariffs.
Some examples include:
- EDF Energy – Heat Pump Tracker tariff
- British Gas – Heat Pump tariff options
- E.ON Next – NextPumped tariff
- Scottish Power – EV and heat pump tariffs
While the details vary between suppliers, the idea is the same: cheaper electricity during certain periods to support low-carbon technologies like heat pumps.
Combining Heat Pump Tariffs with the Boiler Upgrade Scheme
Many UK homeowners installing a heat pump today are also eligible for the government’s Boiler Upgrade Scheme.
This scheme provides a £7,500 government grant to help households switch from fossil fuel heating systems to low-carbon alternatives like air source heat pumps.
When you combine:
- The Boiler Upgrade Scheme grant
- The efficiency of a heat pump
- A smart heat pump tariff
You can significantly reduce both the installation cost and long-term running costs of your heating system.
£50 Credit when you Switch to Octopus with Aura Retrofit
If you decide to switch your energy supplier to Octopus Energy, there’s an additional benefit available.
By using the Octopus referral link on the Aura Retrofit website, new customers receive £50 credit added to their energy account after signing up.
It’s a simple way to start saving straight away while taking advantage of smart energy tariffs designed for modern heating systems.
Click here and make the switch to greener, cheaper energy!
Why Homeowners Choose Aura Retrofit
At Aura Retrofit, we specialise in installing high-performance air source heat pumps designed to deliver maximum efficiency and comfort.
But our support doesn’t stop at installation.
We help homeowners understand:
- How heat pumps work
- How to run them efficiently
- Which energy tariffs can reduce running costs even further
Our goal is to ensure your heating system is not only environmentally friendly but also economical to run for years to come.
Conclusion
Heat pumps are already one of the most efficient home heating systems available. But pairing them with the right electricity tariff can unlock even greater savings.
With energy suppliers now offering heat pump-specific tariffs, homeowners can benefit from:
- Lower heating costs
- Smarter energy usage
- Reduced carbon emissions
- Greater control over their energy bills
When installed correctly and paired with the right tariff, a heat pump becomes one of the smartest long-term investments you can make in your home.
And with expert installation from Aura Retrofit, you can be confident your system is designed to deliver maximum comfort, efficiency, and savings.
Contact Aura Retrofit today for more information.
*Information correct at time of publishing. E&OE.