Time of use tariffs for heat pumps: The key to low-cost heating.

So, you’ve made the leap to a heat pump. You’re likely already enjoying the fact that your new system is incredibly efficient, often delivering 300% to 400% efficiency1. That means for every kilowatt of electricity you put in, you get three to four kilowatts of heat out. 

However, there is a catch that many homeowners notice early on: electricity costs more per unit than gas. If you stay on a standard, flat-rate energy tariff, those higher electricity unit costs can eat into the savings you expected from your investment.  

The issue here isn’t the heat pump itself, it’s the tariff supplying the energy for it. Think of it like owning an Electric Vehicle (EV), when you buy an EV, you typically switch to a specialist EV tariff to access significantly cheaper charging during off-peak times. A heat pump works the exact same way. We’ve designed a smart tariff to bridge that gap.

We want to be your one-stop shop, providing both the high-quality heat pump installation and our specialist Next Pumped tariff to ensure your home is as cheap and efficient to run as possible.

What is a time of use tariff?

Most people are used to a standard energy tariff where you pay the same price for electricity whether you’re making toast at 8am or running the dishwasher at midnight. While simple, this doesn't reflect how the energy grid actually works.

A time of use tariff is different. It offers windows of time where the electricity price drops significantly. The logic is based on supply and demand. During the day, there are times when the UK has generated more energy from wind or solar, or when general demand is very low. These are off-peak times. On the other hand, peak times usually happen between 4pm and 7pm, when everyone gets home, turns on the oven, and turns on the TV.

By switching to a time of use tariff, you get rewarded for using energy when the grid is quiet. Why wait until you arrive home to turn the heating on at peak times, when you can heat your home for less during an off-peak period and arrive to a warm house!

Scaling savings: House size vs heat pump capacity.

The way you use your tariff depends on the size of your home and your specific heat pump capacity. One size doesn't fit all, so here is how to use the windows to your advantage.

Small homes (1-2 bed | 4kW-5kW heat pump).

In smaller properties, the main energy draw often isn't just space heating, it’s hot water. If you have a small household, you can schedule your hot water cylinder to heat up entirely during the super-off peak window. This ensures you have a full tank of hot water for the day’s showers and dishes at the lowest possible rate. If your hot water tank needs topping up, minimal amounts of energy can be used to top this up whenever it’s needed, as the main heating requirement was completed off-peak.

Average homes (3 bed semi | 5kW-9kW heat pump).

For the classic British semi-detached, the 1pm to 4pm mid-day boost is your best friend. By using this window to slightly increase the temperature of your home, you're essentially storing heat in your walls and floors. This is known as your home’s thermal mass. 

This allows the heat pump to rest or run at a very low level during the expensive 4pm to 7pm evening peak, keeping you warm without the high cost.

Large homes (4+ bed | 10kW-16kW heat pump).

Large homes have the highest saving potential because they have the heaviest heating loads. Shifting these heavy loads away from peak times can save you hundreds of pounds per year2. With a larger system, smart scheduling becomes a game-changer for your annual budget.

The why now factor: Don’t miss the funding deadlines.

If you haven't installed a heat pump yet, the clock is ticking on some of the best financial support we’ve ever seen in the UK.

The £7,500 BUS grant.

The Boiler Upgrade Scheme (BUS) provides a massive £7,500 towards the cost of your installation. Plus, if you are replacing an old oil or LPG heating system, the government has temporarily increased this grant to £9,000 to offer extra support for off-grid homes. While the government extended the scheme to 2028, the annual budget is capped. This means if the money for 2026 runs out, you might have to wait or miss out entirely. Whether you qualify for the standard £7,500 or the enhanced £9,000 grant, it’s vital to secure your spot in the current funding pot.3 

0% VAT (ends 31 March 2027).

Currently, there is 0% VAT on heat pump installations. This saves the average homeowner roughly £500 on a standard install4. This tax relief is set to expire on 31 March 2027, so acting sooner rather than later keeps that money in your pocket.