Reduced Rate Energy Tariffs for Solar PV and Heat Pumps
Exciting news for anyone looking to save on energy bills! Some energy providers are rolling out enticing tariffs to encourage the adoption of solar PV systems and heat pumps. Here’s what you need to know to make the most of these offers.
Boost Your Earnings with Solar
If you have a solar PV system, you can now earn more for the energy you export. E.on has introduced two new solar export tariffs on 12-month fixed-term contracts:
Next Export Premium Plus: Pays a generous 40p per kWh of electricity exported. This is available to E.ON Next energy customers who’ve had solar panels and a battery solution installed by E.ON Solar and Storage since January 1, 2024.
Next Export Premium: Offers 25p per kWh of electricity exported, for customers who’ve had solar panels installed by E.ON Solar and Storage since January 1, 2024.
Making the Most of Heat Pump Tariffs
Taking advantage of preferential tariffs for heat pumps can be a bit more complex. There are two main types:
Time of Use Tariffs: These are based on dual or multi-band pricing for electricity, allowing you to save if you use your appliances or charge your EV during low-cost bands.
Type of Use Tariffs: These offer a discount on the heating portion of your bill if you install a heat pump as your main heating source.
Strategies for Heat Pump Efficiency
You might think that using your heat pump like a traditional boiler—turning it on during low-price bands and off during high-price bands—would save money. However, this approach can actually reduce the heat pump's efficiency. Heat Geek has a fantastic video where they explore different strategies. They found that running your heat pump in a steady, low-temperature mode, or turning it off for just 3 peak hours, provides the best results. This method balances efficiency with cost, allowing you to use low rates to charge or run other appliances and potentially time your system to heat water during these bands.
Running the heat pump as designed also helps the grid manage increased electrical demand, making it a win-win for everyone.
Case Study Insights
Heat Geek tested this on a standard semi-detached house with an EPC of D, equipped with a heat pump and radiators sized for low-temperature delivery. While some opt for high-temperature systems to save on initial costs or because they doubt low-temp systems, it's important to note that high-temp systems are significantly less efficient. Installing the most efficient system from the start is crucial for long-term savings.
Ovo's discount for heat pumps based on type of delivery rather than time of delivery could save the most money for the average heat pump owner. Remember, all these tariffs require a smart meter.
Time of Use Tariffs
Here’s a closer look at two Time of Use tariffs:
Octopus Cosy:
Standard day rate in your region.
Super cheap rates between 4:00-7:00 AM and 1:00-4:00 PM, 51% cheaper than the standard rate.
Peak rate from 4:00-7:00 PM, 45% higher than the standard rate.
EDF Heat Tracker:
Standard day rate in your region.
Discounted rate between 4:00-7:00 AM and 1:00-4:00 PM, 10p/kWh off the standard rate.
No exit fees or tie-ins.
The newest heat pumps can provide steady-state heating for less than gas bills in a modestly retrofitted home (with double glazing and good loft insulation). However, these tariffs are crucial to encourage market adoption, as many are still resistant to heat pumps.
Feel free to reach out if you want to learn more about whether your home can support a heat pump. We offer impartial, science-backed retrofit advice to help you make the most cost-effective and confident choices.
For more insights, check out Heat Geek’s full video here.
Ovo's Unique Offering
Ovo offers a slightly different structure with their Heat Pump Plus. Eligible customers can run their heat pump at just 15p per kWh, paying one rate for general electricity use and a lower rate for the electricity used by the heat pump.
Explore these opportunities and start saving on your energy bills today!