What are the best tariffs if you have an EV and a heat pump?
Why EV and heat pump owners need to choose the right tariff
EVs and heat pumps are energy-intensive, and using them together increases electricity consumption and costs. It's crucial to choose a tariff that offers cost-efficient electricity and suits your usage.
Managing costs means matching your energy use to the right tariff. Without the right plan, you face paying higher rates during peak hours, even if you can shift your usage to cheaper times.
Time-of-use (TOU) tariffs offer cheaper rates when energy demand is lower, usually at night. If you own an EV and a heat pump, these tariffs can lower your overall costs by encouraging you to use energy during cheaper times.
How do TOU tariffs work with EVs and heat pumps?
TOU tariffs charge different rates depending on the time of day. Unlike flat-rate tariffs which cost the same whenever you use energy, TOU tariffs charge less during off-peak periods.
Off-peak periods typically occur overnight when demand is low, while peak periods usually run from early morning to late afternoon. To save money, charge your EV overnight during off-peak hours, and schedule your heat pump to pre-heat during these times for reduced costs.
By scheduling your energy use, you can take advantage of lower off-peak rates saving you money on both your EV charging and heat pump use.
Cost analysis: how much can you save with an EV and heat pump?
The table below shows estimated annual costs and savings for typical UK households running both an EV and a heat pump. It compares the following tariffs:
- Flat-rate tariff - Fixed rate for energy use
- TOU tariff (e.g. Octopus Go) - Different rates for off-peak and peak periods, with savings for shifting usage to off-peak
- Heat pump-focused tariff (e.g. Octopus Cosy) - Specifically designed for homes with heat pumps, typically offering savings during off-peak hours.
| Tariff type | Annual EV charging cost (£) | Annual heat pump cost (£) | Total annual cost (£) | Estimated annual savings (£) | Standing charges (£) |
|---|---|---|---|---|---|
| Flat-rate | 700 | 1000 | 1700 | 0 | 200 |
| TOU (e.g. Octopus Go) | 500 | 750 | 1250 | 450 | 200 |
| Heat pump-focused (e.g. Octopus Cosy) | 550 | 850 | 1400 | 300 | 250 |
These figures are based on typical usage scenarios and standing charge estimates, and may vary depending on your specific circumstances
Strategies for homes with an EV and heat pump
To reduce costs of using an EV and heat pump, you can use a combination of strategies:
- Smart charging: Schedule EV charging during off-peak hours to avoid peak rates and lower costs
- Scheduled heating: Set your heat pump to run during off-peak hours to save on heating costs
- Home batteries: Store energy during off-peak hours for use during peak times, helping reduce your reliance on expensive electricity
- Apps and energy monitors: Track energy usage to maximise savings.
Off-peak hours may not always align with your energy needs, which can be challenging. For example, if your EV needs charging during peak times or your heat pump requires heating at specific times, you may miss out on the bigger savings. However, with smart charging and home batteries, you can still reduce your costs.
Supplier overview: who offers the right tariff?
Several key suppliers offer tariffs tailored to homes with EVs and heat pumps. Here are some options to consider:
British Gas
- Relevant tariffs: British Gas EV Plan (EV), British Gas Electricity (Heat Pump)
- Designed for: EVs, with optional add-ons for heat pump use
- Smart meter requirement: Yes, smart meters help monitor off-peak usage and manage energy costs.
E.ON Next
- Relevant tariffs: E.ON Next Drive (EV), E.ON Next Pumped (Heat Pump)
- Tailored for: EVs, with an emphasis on energy-efficient plans for heat pump owners
- Smart meter requirement: Yes, required for accurate billing and tracking of off-peak usage.
Octopus Energy
- Relevant tariffs: Octopus Go (EV), Octopus Cosy (Heat Pump)
- Tailored for: Both EVs and heat pumps
- Smart meter requirement: Yes, smart meters are required to track accurate usage during off-peak periods.
OVO Energy
- Relevant tariffs: OVO EV Plan (EV), OVO Heat Pump Plus (Heat Pump)
- Tailored for: Primarily EVs, but also offers add-ons for heat pump owners
- Smart meter requirement: Yes, essential for optimising usage and accurate billing.
These tariffs are available nationwide, but specific options may vary depending on your location and the supplier’s coverage.
Comparing Octopus Go, Intelligent Go and Cosy: which is best?
| Tariff | Off-peak hours | Off-Peak Rate (per kWh) | Best use cases | Performance with EVs | Performance with heat pumps |
|---|---|---|---|---|---|
| Octopus Go | 12.30 AM - 5:30 AM | 8.5p | EV charging with a five-hour off-peak window at night. | Ideal for charging EVs overnight at a low rate. | Not designed specifically for heat pumps but can work well for general electricity needs. |
| Intelligent Octopus Go | 11:30 PM - 5:30 AM | 7p | EV charging and general household use with a longer off-peak window at night. | Ideal for charging EVs overnight at a lower rate. | Suitable for heat pumps but not the best for homes with high heating demand. |
| Octopus Cosy | Three periods of cheap rates between 04:00am - 07:00am, 1:00pm - 4:00pm and 10:00pm - 12:00am every day | 51% cheaper than the day rate in your region during cheap rate hours | Homes with heat pumps, offering multiple off-peak windows for energy-intensive heating. | Works well with EVs but primarily focuses on heat pump use. | Tailored for heat pumps, offering multiple off-peak periods for heating in the winter. |
Prices, off-peak hours and other tariff details may change. Always check with Octopus Energy for the most up-to-date information before making any decisions.
You may also benefit from switching tariffs seasonally. Octopus Go is ideal for summer months when EV charging might be a priority, while Octopus Cosy is better suited for winter, especially if you rely on a heat pump for heating your home.
Tips before you switch
Before switching to any new tariff, keep these important considerations in mind:
1. Smart meter requirement
You need a smart meter to track off-peak usage and benefit from the lower rates. Ensure your smart meter is SMETS2 compliant to allow switching between suppliers without affecting functionality and supply. If you’re not sure, check with your supplier.
2. Compatible hardware checklist
- Smart charger: Make sure your EV has a smart charger that you can schedule to charge during off-peak hours
- Heat pump with scheduling: Check that your heat pump can schedule operation during off-peak times. Many modern heat pumps have built-in scheduling features that work well with TOU tariffs.
3. Monitor energy use
Track your energy use before and after switching to check savings.
FAQs
Can one tariff serve both an EV and heat pump efficiently?
Yes, but it depends on your usage. Some tariffs focus on EVs, others on heat pumps. A battery can help balance usage and boost savings.
Are there specific energy tariffs for heat pump users?
Yes, Octopus Cosy is tailored for heat pumps for example, offering reduced rates during off-peak hours.
Is a home battery useful with TOU tariffs?
Yes, a home battery is useful with TOU tariffs. It stores cheap electricity from off-peak hours for use during peak times, therefore reducing costs.
Are combined EV and heat pump tariffs available?
There’s currently a lack of combo tariffs designed specifically for both EVs and heat pumps. However, smart technology setups can simulate combined benefits. By installing a home battery, you can store electricity during off-peak hours and use it during peak times, effectively managing both EV charging and heat pump operation. Smart meters and compatible chargers help this further, allowing for efficient energy use and increased savings.
Can I use Intelligent Octopus Go with a heat pump?
Yes, you can use Intelligent Octopus Go with a heat pump, but it's not specifically designed for them. This tariff primarily supports EVs so it may not offer the most cost-effective rates for your heat pump.
For greater savings, consider Octopus Cosy. It's tailored for heat pump users, offering multiple off-peak periods throughout the day. This allows you to run your heat pump during cheaper hours and reduce overall energy costs.
Can I switch between EV and heat pump tariffs seasonally?
Yes, you can switch between EV and heat pump tariffs seasonally with suppliers like Octopus, typically with a notice period of 30 days. Switching tariffs helps you align energy use with seasonal needs, such as prioritising EV charging in summer and heat pump use in winter.
Can I combine solar panels with my EV and heat pump setup?
Yes, you can combine solar panels with your EV and heat pump setup. Solar panels reduce energy costs by generating electricity when the sun shines. When paired with battery storage and TOU tariffs you can store excess energy, improving efficiency and savings by using cheaper energy when needed.
Are there any government incentives for installing heat pumps or EV chargers?
Yes, the UK government offers incentives for installing heat pumps and EV chargers.
The Boiler Upgrade Scheme offers up to £7,500 for installing heat pumps, while the Electric Vehicle Chargepoint Grant offers up to £350 for home chargepoints.
Check eligibility and application details on government websites.
