Cosy up to more savings: Octopus Energy launches new off-peak rate for heat pump customers
Cosy up to more savings: Octopus Energy launches new off-peak rate for heat pump customers
Octopus drops UK’s lowest heat pump tariff even further – Cosy heat pump customers on the Cosy Octopus tariff saved an average of £230 last year compared to using a gas boiler running at 85% efficiency on our standard variable tariff.
One-of-a-kind ‘Cosy Octopus’ heat pump tariff gets third off-peak rate window
Customers love the tariff, with nine out of ten (93%) saying they’d like it to stay
London, 25th June 2024 - Octopus Energy, the UK’s largest electricity supplier, makes green heating even cheaper by announcing a third off-peak rate for customers on its heat pump tariff ‘Cosy Octopus’.
From the 1st July, customers can heat their homes for an average of 11.10p per kilowatt-hour (kWh) between 10pm and midnight, adding an evening window to the two existing off-peak rates in the morning and afternoon*.
‘Cosy Octopus’ is the UK’s cheapest smart heat pump tariff, with all three off-peak windows priced roughly 50% below the new rate on a standard variable tariff (SVT).
The new low-cost period offers more savings and flexibility for Cosy customers who often also have other clean technologies such as solar panels, batteries and EVs in their homes.
On top of the additional off-peak window, Octopus is lowering the rates across the entire tariff by 10.1%.
Cosy heat pump customers on the Cosy Octopus tariff saved an average of £230 last year compared to using a gas boiler running at 85% efficiency on our standard variable tariff.
Customers love ‘Cosy Octopus’, with 93% saying they would be disappointed if the tariff were to be removed***.
Rebecca Dibb-Simkin, Chief Product Officer at Octopus Energy, said: "Heat pumps are ushering in a new era in heating – helping us to end our addiction to dirty gas boilers and moving us towards a clean, cheap heating system.
“We’re always looking for new ways to reward customers who are choosing clean tech and, by that, are getting the country closer to a green, flexible energy system. And we’ll keep innovating relentlessly to bring the costs of green heating down even further.”
Octopus Energy has been pioneering heat pumps since 2021, investing over £50 million to accelerate their rollout and launching Britain's first R&D centre for heat pumps in Slough. Last year the company launched its own air-source heat pump – the Cosy 6 – which is designed and manufactured in the UK.
For more information on the Cosy Octopus Octopus tariff visit octopusenergy.com/cosy.
-ENDS-
Notes to editors
* New ‘Cosy Octopus’ average rates:Electricity Standing Charge: 55.00p
Off-Peak Rate (between 04:00-08:00, 13:00-16:00 and 22:00-00:00): 12.951p
Peak Rate (00:00-04:00 and 08:00-13:00): 39.590p
Day Rate: 26.391p (for the rest of the day)
** This figure is based on the actual energy consumption of all Cosy heat pump customers on a Cosy Octopus tariff between 1 Oct 2025 and 1 Oct 2026, using tariff rates at the time. We compared this to the cost of producing the same amount of heat with a gas boiler operating at 85% efficiency, priced using our Flexible Octopus (standard variable) tariff at the same time. Savings from gas standing charges were included only for customers who had fully removed their gas supply (less than 2% of customers). Actual savings vary depending on system design, tariff choice, home insulation and energy use.
*** ‘Cosy Octopus’ customer survey of 278 respondents conducted on 4 June 2024. Question: How would you feel if Octopus Cosy no longer existed?
Press Contacts
Octopus Energy Group
press@octoenergy.com
+44 (0)20 4530 8369
About Octopus Energy Group
Octopus Energy is a global clean energy tech business, driving the affordable, green energy system of the future. Under its own retail brand, Octopus delivers world-class customer service and cutting edge energy products to 7.9 million households globally. Its operations span 18 countries and the entire energy value chain. The group invests in, builds and flexibly manages renewable energy, operating a £7 billion portfolio of projects.
Octopus has licensed its advanced data and machine learning platform, Kraken, to support over 54 million customer accounts worldwide through licensing deals with companies such as EDF, E.ON and Origin Energy. Kraken enables Octopus to drive the electrification of heat and transport through smart tariffs and innovative cleantech. Backed by pension funds, investors and energy giants, Octopus Energy Group businesses deliver cheaper, greener energy and cutting-edge tech to countries and customers worldwide. For more information, check out our website.
Cosy heat pump customers on the Cosy Octopus tariff saved an average of £205 last year compared to using a gas boiler running at 85% efficiency on our standard variable tariff
This figure is based on the actual energy consumption of all Cosy heat pump customers on a Cosy Octopus tariff between 1 Oct 2025 and 1 Oct 2026 , using tariff rates at the time.
We compared this to the cost of producing the same amount of heat with a gas boiler operating at 85% efficiency, priced using our Flexible Octopus (standard variable) tariff at the same time.
Savings from gas standing charges were included only for customers who had fully removed their gas supply (less than 2% of customers). Actual savings vary depending on system design, tariff choice, home insulation and energy use.
Our typical heat pump price is £4,064, which is lower than the national average of £5,408
This is the median post-survey price from all of our heat pump quotes after the £7,500 Boiler Upgrade Scheme has been applied, between 01/06/2026 and 30/09/2026. The national average is taken from the Boiler Upgrade Scheme statistics: April 2026 – median cost of installation Q3 2026.
Cut carbon emissions by 85% with a heat pump
This is the typical reduction in heating carbon emissions using an electric powered heat pump compared to a gas boiler.
The carbon breakdown
Gas CO2 (tonnes per year) - 2.00
Electricity CO2 (tonnes per year) - 0.31
Carbon saving (tonnes per year) - 1.69
Data sources and assumptions
Gas Energy Usage (kWh) 9500 (Ofgem medium use gas usage (Oct 2026))
Heat Pump Efficiency 312% (typical seasonal coefficient of performance from a fleet of Octopus high temperature heat pumps)
Gas Boiler Efficiency 85% (The typical gas boiler efficiency from a BEIS study)
Gas fuel emissions of (gCO2/kWh) 210 (SAP 10.3)
Electricity fuel emissions of (gCO2/kWh) 119 (SAP 10.3)
Based on these sources, heat pumps typically produce lower operational emissions when heating the home than gas boilers.
For more information, explore our Octopus Cosy heat pump fleet performance dashboard.
We're the largest heat pump installer on the Boiler Upgrade Scheme
Based on Octopus benchmarking against Ofgem reports from 2026, and we've continued to grow since.
Our customers love their heat pumps!
93% of people say it's the same or more comfortable than their previous boiler
87% say it costs the same to run or less
83% say it's the same noise or less than the previous boiler
90% say it's just as easy or easier to maintain
We survey all our heat pump customers 3 months post-installation to see how they find their heat pump compared to their previous gas boiler. Survey results are taken from a sample of 2,837 customers:
Comfort: 93% of people say it is the same or more comfortable than their previous boiler.
Running Costs: 87% say it costs the same to run or less.
Noise: 83% say it is the same noise or less than the previous boiler.
Maintenance: 90% say it is just as easy or easier to maintain.
A heat pump is around 4x more efficient than a gas boiler
Heat pumps don't generate heat by burning fuel. Instead, they transfer existing heat into your home. This means they can deliver multiple units of heat for each unit of electricity used.
Based on performance data from a fleet of installed Octopus Cosy heat pumps, typical real-world seasonal performance (SPF or SCOP) is around 3.6. This means around 3–4 kWh of heat is delivered for every 1 kWh of electricity used (an effective efficiency of 300–400%). By comparison, typical UK domestic gas boilers operate at around 85% efficiency, delivering approximately 0.85 kWh of heat per 1 kWh of gas used. On this basis, a heat pump can be around 4× more efficient than a typical gas boiler.
All our heat pumps are independently tested by the Building Research Establishment (BRE), with SCOP values published on the Microgeneration Certification Scheme (MCS) product database. Actual efficiency will vary depending on the property, system design, and usage. For more information, explore our Octopus Cosy heat pump fleet performance dashboard.
The UK's most awarded energy supplier
We've won more awards for customer service than anyone else.
Heat pumps give reliable, consistent heating and hot water
The heat pump user survey report by Nesta from May 2023 summarises that "users are highly satisfied with their heat pumps". It states: "People living in England, Scotland and Wales who own their home and use a heat pump to heat it are satisfied that heat pumps are safe, reliable, quiet heat sources that are effective for space heating and producing hot water." Find the full report here.
The Cosy heat pump is quiet
Heat pump sound power levels are verified by an independent, third-party laboratory as part of the testing process for inclusion on the MCS product database. The laboratory verifies the sound power on the A-weighted decibel curve, as A-weighting closely aligns to how humans perceive "loudness".
All heat pumps are measured using EN14511 standards to ensure uniformity across manufacturers and models. Our Cosy 6 heat pump has a verified sound power level lower than many other heat pumps of the same capacity.
Heat pump heating makes the air healthier in your home
Homes with a heat pump emit far less harmful nitrous oxide (NOx) emissions than those with gas boilers and cookers, significantly reducing asthma and other respiratory illnesses. According to the Sustainable Markets Initiative Cleantech Homes report.
A heat pump can add thousands to your property value
Analysis by the Department of Land Economy at the University of Cambridge suggests a 16% value uplift for new-build homes with enough solar and battery storage to eliminate energy bills. A further study of over five million existing properties indicates a 2-3% value increase for existing homes with solar panels or heat pumps (versus like-for-like gas-heated homes), according to the Sustainable Markets Initiative: Cleantech Homes report, 2024.
As of July 2026, the average house price in the UK is £272,611 according to the Land Registry. Therefore, a 2-3% value increase for an average house priced at £272,611 would be between £5,460 and £8,190.
Heat pumps typically last longer than gas boilers
The expected lifespan of a typical gas boiler is 10–15 years. A heat pump typically has a lifespan of 15–20 years, with UK government research indicating an average of around 20 years. Manufacturer Daikin reports similar ranges. Actual lifespan depends on factors such as installation quality, maintenance, usage patterns, and operating conditions.