Storage heaters

The installation of heat pumps makes more sense in off-grid properties due to the cost differential being less, but costs are still significant. A cheaper option is to look at less efficient electrical heating (100%) and take advantage of cheaper tariffs. The way to do this is via storage heaters. These are cost effective ONLY if you have an overnight ‘Economy 7’ or Time of Use (ToU) tariff.

Companies are no longer installing Economy 7 meters and so unless you have an historic one the main option is to look at ToU tariffs.

ToU tariffs work by providing electricity cheaply (around 25% of normal cost) when demand is low and supply outstrips it – this tends to be in the early hours of the morning. Tariffs then go up (around 25% higher) when demand is high, so generally between 5 and 7 in the evening. So you can avoid the expensive tariffs by ‘charging up’ your heating overnight. New storage heaters have much better controllability and can be programmed to keep your home warm all day and night, so ensure that you get good advice from any installer to ensure that you have enough capacity to keep you comfortable.

Notes:

ToU tariffs require a SMETS2 Smart Meter to measure your consumption.

To avoid any higher tariffs you could also look at a battery system that is also recharged overnight at low cost and then releases this stored energy when tariffs increase.

ToU also helps the grid balance demand and this smoothing of flow through 24 hours is beneficial both to the increased use of renewables and by reducing pressure on the national grid network.

More information at: https://energysavingtrust.org.uk/time-use-tariffs-all-you-need-know/