Understanding heat pump tariffs in the UK

Heat pump tariffs

Installing an air source heat pump in your home can not only make your heating more energy-efficient and kinder to the planet, it can also help you save money on your bills. Heat pumps are significantly more efficient than gas boilers, achieving 300-400% efficiency as opposed to 85-95% efficiency. That means that, when installed by experienced heat pump installers, they produce three to four times more energy than they consume.

Let’s look at an example of air source heat pump efficiency. For a home requiring 15,833kWh of energy per year:

• Gas Price per kWh: 6.4p
• Gas Boiler Efficiency: 85% (older gas boiler)
• Electricity Price per kWh: 24.5p
• Gas Standing Charge: 31p per day
• Electricity Standing Charge: 52p per day

For a gas boiler with 85% efficiency, then, the annual cost with a 31p daily standing charge and a price of 6.4p per kWh is £1,305.28.

For a heat pump with 400% efficiency, the annual cost with a 52p daily standing charge and a price of 24.5p per kWh is £1,159.57.

So what are the heat pump tariffs offered by various energy companies? Let’s take a look.

Octopus Energy: Cosy Octopus Tariff

The Cosy Octopus heat pump tariff provides three periods of cheap electricity rates each day: 4am – 7am, 1pm – 4pm and 10pm – 12am. These are significantly cheaper than the day rate; however the peak rate on this tariff (4pm – 7pm) is higher than the day rate. Customers can save up to £395 per year with a heat pump delivering 400% efficiency.

OVO Energy: Heat Pump Plus Tariff

The Heat Pump Plus tariff from OVO offers a rate of 15p per kWh for energy used specifically by a heat pump. A standard rate is then applied to all other energy usage. In contrast to Octopus’ heat pump tariff, users can power their heat pump 24 hours a day, enabling them to retain a consistent temperature. With a heat pump running at 400% efficiency, customers can save up to £560 annually.

However, it’s worth noting that this tariff is only available to customers with a Vaillant or Viessmann heat pump, and only specific models qualify.

EDF Energy: Heat Pump Tracker Tariff

EDF’s heat pump tariff guarantees that customers will never be charged above the price cap, and provides six hours of discounted energy per day (4am – 7am and 1pm – 4pm). Customers can save around £164 compared to those on standard variable tariffs.

ScottishPower: Heat Pump Saver Tariff

This tariff provides a rate of 15p per kWh during off-peak hours (11am – 4pm) and an average of 25.649p per kWh for the remaining hours. Customers with any make and model of heat pump, who have a communicating smart meter and pay by monthly direct debit, can access this.

Heat pumps with Aura Heating

Whether you’re looking for air source heat pump installation or heat pump servicing  in the south of England, we at Aura Heating can help. Our expert heat pump installers in Hampshire, Dorset, Berkshire, Surrey and Sussex will assess your home and its energy requirements, carry out a high-quality, professional installation, and help you maintain your appliance. For air source heat pumps in Hampshire and beyond, contact our MCS certified installers today.