Martin Lewis on Air Source Heat Pumps: The Energy Suppliers Now Offering Heat Pump Tariffs

By stephenWD | April 2, 2025

Air source heat pumps are being hailed as a game-changer. Not in always the best light but as homeowners find that they can get their installation costs covered by a grant and save energy costs, the path to greener sources gets clearer.

Along with solar energy, the quest for more environmentally friendly home heating solutions means that heat pumps are a talked about peculiarity that soon makes sense.

Martin Lewis, the personal finance expert and founder of MoneySavingExpert.com, has long been an advocate for energy savings. Recently, he highlighted a growing trend among energy suppliers to offer specific heat pump tariffs designed to make this green technology more affordable for homeowners.

Let's look at those tariffs that Martin Lewis analysed and covered for his readers. Have a browse over what's available for those using or plan to use air source heat pumps.

Get in touch with us via the form below with any heat pump questions you have albeit pre-installation or because you have general questions.

Energy suppliers are now introducing innovative electricity tariffs

And they are tailored for homes with heat pumps. These tariffs function similarly to traditional time-of-use tariffs like Economy 7, where the rate you pay for electricity varies depending on the time of day.

However, it’s something to note that peak prices under these tariffs can be up to 60% more than the standard Price Cap rates. Alternatively, some tariffs offer cheaper rates solely for powering heat pumps.

Smart meters are required to take advantage of these tariffs, and the good news is that there are no exit fees. This flexibility allows customers to switch to another tariff or provider whenever they choose.

Yet, comparing these tariffs can be challenging. While you can use tools like MoneySavingExpert’s Cheap Energy Club to find the cheapest fixed deals, you’ll still need to compare those rates against the specialised heat pump tariffs.

So what energy provider is offering what? We've included the providers that allow you to get a good deal on a heat pump from us here at S Fearn.

E.on Next

E.on Next has launched its NextPumped tariff, which provides two cheap off-peak periods daily. Between 1pm and 4pm, and between 4am and 7am, customers will pay less than the standard electricity rates in their region for all household electricity use.

This 12-month fixed-term tariff has no exit fees, providing the flexibility to switch if necessary.

EDF Energy

EDF Energy’s Heat Pump Tracker Tariff follows a similar off-peak model. The tariff offers cheaper electricity rates during two off-peak periods: 4am to 7am, and 1pm to 4pm.

During these hours, customers receive a discount of 10p/kWh off the standard tariff rate in their region. This setup is particularly beneficial for households that can adjust their energy usage to these off-peak times.

Good Energy

Good Energy has introduced the Heat Pump tariff, which provides seven hours of off-peak electricity at 12p/kWh across two periods: 5am to 9am, and 1pm to 4pm. Outside of these times, the rate climbs to around 30p/kWh.

This tariff is fixed until March 2026, and customers must pay by Direct Debit. A notable feature is the £75 early exit fee for those who wish to terminate their contract early.

At S Fearn ,we can help you get all the facts on the importance of long-term planning when committing to this tariff.

Octopus Energy

Octopus Energy offers a range of smart tariffs suitable for homes with heat pumps. The 'Cosy Octopus' tariff features three different rates each day. An attractive off-peak rate is available from 4am to 7am, 1pm to 4pm, and 10pm to midnight.

There is a more expensive peak rate from 4pm to 7pm, and all other times are charged just above the standard variable ('Flexible') rate. This tiered approach provides excellent flexibility for users who can manage their energy consumption around these times.

Octopus Energy also offers other smart tariffs that can benefit homes with heat pumps. For example, the Intelligent Octopus or Octopus Go tariffs are designed for those with electric vehicles, enabling cheap off-peak rates that can also be used to power a heat pump.

For households with solar panels and battery storage, Octopus Flux or Intelligent Octopus Flux might be ideal. Those with both a heat pump and solar panels but no battery storage can pair Cosy Octopus with Outgoing Octopus.

Ovo Energy

Ovo Energy’s 'Heat Pump Plus' tariff is an add-on to its existing range of tariffs. Customers who have installed a heat pump through Ovo’s partner Heat Geek, or those with a compatible air source heat pump, can power their heat pump at a rate of 15p/kWh, roughly half the standard Price Cap rate.

The electricity used to power the rest of the home will depend on the specific Ovo tariff in place. This flexibility includes the option to combine this tariff with other add-ons, such as those for electric vehicles or solar energy.

Scottish Power

Scottish Power's Heat Pump Saver tariff allows customers to power their heat pump at a cheaper rate of 14p/kWh between 11am and 4pm daily. This focused timeframe can be particularly advantageous for households that can shift their heating needs to these hours.

Are Financial Savings Guaranteed With My Choice Of Tariff?

It's important to acknowledge that while heat pumps are much more environmentally friendly than traditional gas boilers, the financial savings might not be significant for everyone initially. For homes with highly efficient boilers, replacing them with a heat pump might not result in substantial financial savings and could even lead to higher costs in the short term.

Nonetheless, the eco-friendly benefits of heat pumps are undeniable. They do not burn fossil fuels and instead use electricity, which can be sourced from renewable energy.

For those committed to reducing their carbon footprint, the lack of immediate cost savings might be a worthwhile trade-off for the long-term environmental benefits.

Martin Lewis’s insights: Heat pump-specific tariffs indicate a positive shift towards more sustainable home heating options

So you have a variety of tariffs available from major energy suppliers like E.on Next, EDF Energy, Good Energy, Octopus Energy, Ovo Energy, and Scottish Power, homeowners have more choices to find a tariff that suits their needs and financial situation.

Consider the above heat pump tariffs details carefully for the long term before you commit to a energy provider. Ask about the short term as well. Be clear on how the heat pump will benefit you.

Innovative tariffs? Well, if you save money and cut your carbon emissions, it is a leap forward. UK households can take a significant step towards reducing their energy bills and their environmental impact.

Get in touch with S Fearn via the below form or call us on 0113 513 5130 with any queries we will be happy to answer on heat pumps.

Read our articles on heat pumps and gain a clear understanding of how they operate and why they save on energy costs.