Heat Pump + Octopus Heat Pump Tariff UK 2026

The Octopus Heat Pump Tariff is a flat-rate (typically ~15-18p/kWh) electricity tariff applied specifically to the heat pump's dedicated meter circuit. Key features:

• Dedicated meter required. Heat pump runs on its own smart meter (second meter at the property) or partitioned circuit.
• Flat rate, no peak / off-peak structure. Simpler than Cosy or Intelligent Go.
• Decoupled from baseline household usage. Rest of home can be on Octopus Standard, Tracker, Agile, or any other tariff.
• Designed for high-usage households. Larger properties, poorly-insulated retrofits, properties with multiple heat sources (heat pump for space, immersion for DHW boost).

Eligibility requires:

• Heat pump installed in property (any MCS-certified install).
• Dedicated heat pump meter - second smart meter or partitioned circuit at the property.
• Octopus account for both tariffs (Heat Pump Tariff + whatever covers baseline).

Dedicated meter install cost:

• Second smart meter install via DNO: typically free (DNO provides) but requires arranging through energy supplier.
• Partitioned circuit / sub-metering install: GBP 800-1,500 typical for sub-meter + dedicated wiring (Eastron SDM630, Carlo Gavazzi EM340).
• Existing dedicated meter: some new installs already include sub-metering for performance monitoring; in this case Heat Pump Tariff is straightforward to activate.

Without dedicated metering, you can't access the Heat Pump Tariff - the GBP 800-1,500 install cost is a one-time barrier.

1. Very high heat pump usage households (7,000+ kWh/year heat pump electricity). Large properties, poorly-insulated retrofits, or properties with heavy DHW boost usage. At this consumption level, the flat ~15-18p/kWh Heat Pump Tariff beats Cosy's weighted ~16p/kWh + simpler operationally.
2. Baseline household on Octopus Tracker or Agile. If your rest-of-home usage is on a wholesale-tracking tariff (where rates can spike during cold-snap peaks), keeping heat pump on a flat Heat Pump Tariff protects against the heat pump usage hitting peak rates during high-demand evenings.
3. Multi-occupancy properties. Annex / granny flat / rental with shared heat pump - dedicated metering allows fair cost-sharing AND tariff optimisation for the heat pump portion separately.

For typical UK 3-bed households with standard heat pump usage (4-5,000 kWh/year heat pump electricity + 3-4,000 kWh baseline):

• Cosy works well. Multi-window off-peak (6 hours/day at ~13p) on the heat pump usage, combined with the same windows benefiting baseline usage. Simpler than maintaining two separate tariffs.
• Intelligent Go works for EV households. Cheapest off-peak rate (7.5p/kWh) but requires shifting heat pump load to overnight - works if you have flexible heating schedule + EV charging.
• No dedicated metering required. Skip the GBP 800-1,500 install cost.

Heat Pump Tariff requires the GBP 800-1,500 metering install premium to capture. That cost pays back ONLY if the flat-rate tariff structure delivers genuinely better economics than a multi-rate alternative - which is true mainly for the high-usage scenarios above, not typical households.

Typical UK 3-bed semi: 12,000 kWh annual heat demand → ~4,000 kWh heat pump electricity at SCOP 3.0. Baseline household 3,500 kWh.

Octopus Cosy whole-house (no dedicated metering):

• 4,000 kWh heat pump x 16p (weighted Cosy rate) = GBP 640.
• 3,500 kWh baseline x 19p (Cosy standard rate weighted) = GBP 665.
• Standing charge GBP 230.
• Total: GBP 1,535/year.

Octopus Heat Pump Tariff + Octopus Tracker baseline:

• 4,000 kWh heat pump x 17p (Heat Pump Tariff) = GBP 680.
• 3,500 kWh baseline x 16p (Tracker average) = GBP 560.
• Standing charge GBP 230 (single meter location) + GBP 100 if dedicated metering = GBP 330.
• Metering install amortised: GBP 1,000 over 10 years = GBP 100/year.
• Total: GBP 1,670/year.

Octopus Intelligent Go whole-house:

• 4,000 kWh heat pump x 25p (mostly peak rate, can't shift) = GBP 1,000.
• 3,500 kWh baseline x 25p = GBP 875.
• Standing charge GBP 230.
• Plus EV charging at 7.5p (if applicable, ~GBP 200 saving on 3,000 kWh).
• Total: GBP 1,905/year (or GBP 1,705 with EV).

Typical winner: Cosy. Cleanest economics for typical households without specialist usage patterns.

1. Calculate your annual heat pump electricity usage. From your manufacturer app, energy monitor, or 12-month bill history. Most UK 3-beds use 3-5,000 kWh; large properties / retrofits use 5-7,000 kWh.
2. If under 5,000 kWh/year: Cosy is almost certainly the right answer. Don't invest in dedicated metering.
3. If 5,000-7,000 kWh/year: marginal case. Heat Pump Tariff MIGHT win - run the math on your specific usage; decide based on whether GBP 100-150/year saving justifies metering install.
4. If 7,000+ kWh/year: Heat Pump Tariff likely wins. Worth the metering install investment.
5. If you already have dedicated metering: activate Heat Pump Tariff at no incremental cost; run for 12 months + compare actual cost vs Cosy.