Why Electric Heating Homes Pay More

Understanding the cost challenges of all-electric properties

Homes with electric-only heating face significantly higher energy bills than gas-heated properties. This premium comes from relying exclusively on electricity for space heating, hot water, and all appliances.

Critical Challenge

Electricity unit rates are typically 3-4 times higher than gas per kWh, meaning heating costs can be substantially higher without the right tariff strategy.

Common Electric Heating Types

  • Storage heaters (night storage)
  • Electric panel heaters
  • Electric radiators
  • Underfloor electric heating
  • Air source heat pumps
  • Electric boilers

Typical All-Electric Properties

  • Flats and apartments
  • New-build homes
  • Rural properties off-gas
  • Listed buildings
  • Urban conversions

2026 Electric Heating Cost Analysis

Annual electricity costs across different property types

Property Type Typical Annual Cost Cost Range Tariff Impact
1-Bed Flat
Studio/1-bed, single occupant
 £1,500 £1,200 – £1,800 Save up to £600
2-Bed Flat
Couple/small family, moderate use
 £2,150 £1,800 – £2,500 Save up to £900
3-Bed House
Family home, electric heating
 £3,000 £2,500 – £3,500 Save up to £1,500
Poor Tariff Choice
Wrong tariff, high usage
 £4,000+ £3,500 – £5,000+ Overpay £1,000+

Best Energy Tariffs for Electric Heating

Comparing Economy 7, Economy 10 and single-rate options

Economy 7

Cheaper electricity for 7 hours overnight, higher daytime rates. Ideal for storage heaters and overnight water heating.

Save 20-40%

Economy 10

Multiple off-peak periods (day + night) for better heating flexibility. Limited availability, region-dependent.

Save 15-35%

Single Rate

One rate all day. Can be cheaper than Economy 7 for daytime heating, panel heaters, or low overnight usage.

Save 10-30%

Best for Economy 7

  • Storage heaters with night use
  • Overnight water heating
  • Controlled nighttime heating
  • High overnight consumption

Best for Single Rate

  • Panel heaters with daytime use
  • Low overnight electricity usage
  • Daytime home occupancy
  • No storage heating system

Heat Pumps & Electric Heating Tariffs

Optimising tariffs for air/ground source heat pumps

Heat Pump Considerations

  • Efficient but electricity-heavy
  • Require smart meter compatibility
  • Benefit from time-of-use tariffs
  • Not all "heat pump tariffs" are cheaper
  • Load shifting to off-peak periods

Smart Meter Benefits

  • Enable time-of-use tariffs
  • Accurate heating consumption tracking
  • Support load shifting strategies
  • Not mandatory but highly beneficial
  • Expands available tariff options

Electric Heating Savings Calculator

Estimate potential savings for your all-electric home

Customise Your Heating Profile

Adjust sliders to match your annual consumption

5,000 kWh
30%
Estimated Annual Savings
£420
Economy 7 tariff recommended for your usage pattern

Avoid These Electric Heating Mistakes

Costly errors that increase all-electric home bills

Common Costly Errors

  • Staying on Economy 7 without overnight usage
  • Using storage heaters incorrectly
  • Ignoring standing charges in calculations
  • Assuming all-electric homes can't save money
  • Never comparing or switching tariffs
  • Wrong tariff for heating pattern

Smart Switching Strategy

  • Switch before winter price rises
  • Review when fixed tariffs end
  • Re-evaluate when usage patterns change
  • Check after heating system upgrades
  • Compare annually as standard practice
  • Use postcode-specific comparisons

2026 Electric Heating Verdict

Expert recommendations for all-electric UK homes

✅ Electric Heating is Manageable

While electric heating costs more than gas, the right tariff strategy can deliver savings of £300–£1,500+ annually. The key is matching your tariff to your actual heating patterns and property type.

⚠️ The Wrong Tariff Destroys Budgets

Standard variable tariffs and incorrect time-of-use options can add £500–£1,500+ to annual bills. Never assume your current tariff is optimal without comparison.

Small Flats & Studios

Annual savings: £300–£600. Focus on Economy 7 for storage heaters or single-rate for panel heaters. Consider low standing charge tariffs.

Family Homes (3+ beds)

Annual savings: £600–£1,200+. Requires careful Economy 7 vs single-rate analysis. Fixed tariffs recommended before winter.