How Can Smart Tariffs Save Me Money with a Heat Pump?

One of the biggest advantages of a heat pump over a gas boiler is the ability to use smart electricity tariffs to dramatically reduce your running costs.

Smart tariffs like Octopus Agile, Octopus Cosy, and Intelligent Octopus offer cheaper electricity during off-peak hours, typically overnight (midnight to 6am) and sometimes during the afternoon. Off-peak rates can be as low as 7–10p per kWh, compared to the standard rate of around 24p.

A heat pump is perfectly suited to take advantage of these tariffs because it can pre-heat your home and hot water during cheap periods. Your home acts like a thermal battery, heat it up overnight at low cost, and it stays warm throughout the day.

Your smart thermostat makes this easy. It learns your home's thermal characteristics, how quickly it heats up and cools down, and automatically schedules heating during the cheapest periods while maintaining your desired comfort level.

Based on real-world data from our customers, switching to a smart tariff can meaningfully reduce annual heating costs compared to a standard flat-rate tariff. The exact benefit depends on your tariff, usage pattern and how much of your heating you can shift to cheaper periods, so we give you a property-specific estimate at survey.

We set up your smart thermostat during commissioning and can advise on the best tariffs for your usage pattern. Many of our customers are surprised at just how much they save once everything is optimised.