Our research shows that switching to a heat pump appropriate tariff can lead to significant savings, especially if you also disconnect from the gas grid.
The homes of the future are the homes of today
Our latest research looks at the importance of tariff choice when considering a heat pump installation, as well as the financial feasibility of combining heat pumps with other technologies.
This information is critical in supporting homeowners to adopt these technologies, as current generic advice isn’t enough to enable confident, informed decision making.
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Tariff choice is a key factor in unlocking heat pump savings
Our research reveals which tariff types provide the best heat pump savings – and which might actually increase energy bills.
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It's possible for a heat pump to pay for itself within two to four years
With government grants, no gas standing charge and avoiding a replacement boiler, heat pump payback is the shortest it’s ever been.
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Better advice is needed for consumers to confidently make the switch.
These savings are possible, but more needs to be done to ensure advice is tailored to people’s energy needs.
Tariff choice is a key factor in unlocking heat pump savings
It's possible for a heat pump to pay for itself within four years
With government grants available in Great Britain, and deducting the cost of needing a replacement boiler, heat pumps can be much more affordable than previously thought.
And with the savings provided by a good tariff, heat pump payback periods could be as little as four years.
£11,700
Average cost to switch to a heat pump with no financial support.
£4,200
Cost to switch to a heat pump with government grant (England, Wales, Scotland)
£500
Cost to switch to a heat pump factoring in government grant and not needing to replace the old boiler.
Better advice is needed for consumers to confidently make the switch
There are tariffs available now that can unlock these kinds of savings. But there isn’t any tailored advice available to enable consumers to switch with confidence.
This research shows that using clean technologies together, and choosing the right tariff, can help bring costs down.
People need clearer advice, better tools to compare tariffs, and more support to access these technologies so they can make confident, informed decisions on what is right for their home.
Stew Horne, Group Head of Sector Intelligence and External Affairs
Last updated: 10 July 2026