A heat pump combined with a dynamic energy tariff can dramatically reduce your heating bills – without any loss of comfort. The key is letting your heat pump run automatically when electricity is cheapest: at midday, for instance, when solar generation is at its peak. The tado° Heat Pump Optimizer X handles all of that for you automatically.
Heating typically accounts for more than 60% of a household's total energy use. For years, that meant steep bills and a heavy reliance on gas or oil. Heat pumps are changing that picture entirely. Heat pumps draw warmth from the air, ground, or water around your home and convert it into usable heat – with an efficiency that traditional boilers simply can't match. With the UK government's Boiler Upgrade Scheme offering up to £7,500 towards installation, more households than ever are making the switch.
The thing is: heat pumps still need electricity to run. And how much that electricity costs depends a lot on the tariff you're on. That's where dynamic tariffs come in. They track the real-time price of electricity on the wholesale market – and let you take advantage of it. This becomes particularly interesting when smart control systems such as the tado° Heat Pump Optimizer X are integrated.
A heat pump works on a straightforward physical principle. It extracts heat from its surroundings – like air, water, or ground – and uses electricity to raise that heat to a usable temperature for your radiators or hot water system.
The key measure here is the Coefficient of Performance (or short: COP). It tells you how much heat a pump produces for every unit of electricity it consumes. Modern systems typically achieve a COP of 3 to 5 – meaning one kilowatt-hour of electricity generates up to five kilowatt-hours of heat. That efficiency is impressive. But electricity prices can fluctuate – directly affecting the costs of running your heat pump.
Find out exactly how heat pumps work here →
On a standard fixed tariff, you pay the same rate for every unit of electricity, around the clock. On a dynamic tariff, the price shifts hour by hour – tracking supply and demand across the grid.
For households with flexible devices like heat pumps, this creates a genuine opportunity. Shift your energy use to cheaper hours, and you can save meaningfully over the course of a year.
Tariffs like Octopus Agile already make this possible in the UK – and smart systems like tado°, offering dynamic tariff integration, are making it easier than ever to act on those price signals automatically.
Despite what you might have heard, heat pumps don't need to run constantly to keep your home warm. It actually makes sense to manage when they run. A slower-response heating system – like underfloor heating – holds warmth for hours after the pump has stopped. That means you can run your heat pump during cheaper midday hours, when solar energy is abundant, and your home will still be comfortably warm by evening.
The tado° Heat Pumpf Optimizer X connects simply to your heat pump. Condnected with your dynamic tariff, its intelligent algorithms schedule heating around the cheapest electricity hours, outside temperature, and solar forecasts. Combined, this can significantly reduce your electricity costs.
This is where intelligence makes the real difference.
The tado° Heat Pump Optimizer X connects your heat pump to live electricity pricing and weather forecasts. It automatically prioritises running your pump during cheaper hours – while always ensuring your home reaches the temperature you want. Setup is straightforward. Everything is managed through the tado° App. No engineer required, and no complicated wiring.
A standard home requires roughly 9,000 kWh of heat per year. With a heat pump at COP 3.0, that means around 3,000 kWh of electricity consumption.
If your heat pump is paired with a solar PV system, it can run largely on the electricity you generate yourself during the day. Add a battery and you can also capture cheap overnight rates. The result: lower heating costs and a much higher proportion of self-generated power.
Instead of heating your cylinder at expensive peak times, your heat pump runs at midday when solar generation is at its highest. Hot water alone can account for several hundred kilowatt-hours being shifted to cheaper slots each year.
Many people worry that flexible pricing means a less comfortable home. It doesn't. Underfloor heating and thermal mass naturally buffer temperature swings. With additional automation from tado°, you don't have to think about any of it. Instead of compromising on comfort, you gain more control and more transparency over what you're actually spending.
Heat pumps are the heating system of the future. Efficient, sustainable, and free from fossil fuels. Paired with a smart dynamic tariff – such as Octopus Agile – and controlled by the tado° Heat Pump Optimizer X, they reach their full potential. Experience real savings while keeping your comfort high. It’s a meaningful step towards energy independence.
The tado° Heat Pump Optimizer X works with most common heat pump models. Check your system compatibility quickly and easily here.
You'll see the biggest savings with a dynamic tariff that tracks hourly wholesale prices – such as Octopus Agile. That said, even on a standard tariff, the tado° Heat Pump Optimizer X uses weather-based control to reduce your energy consumption.
No. The tado° Heat Pump Optimizer X always ensures your target temperature is met. It simply shifts operation within the limits your heating system allows. With underfloor heating acting as a natural heat store, you're unlikely to notice any difference in day-to-day comfort.
It depends on your current supplier, but switching is usually free and quick. Combined with the tado° Heat Pump Optimizer X, the investment typically pays for itself in a short time.
