Heat pumps to be sold ‘smart-ready’ in plans to save households money (2025)

Heat pumps and electricvehicle (EV) chargers will have to be sold with smart functionality under plans to help customers make use of cheaper energy tariffs, the Government has announced.

Energy smart appliances can adjust their usage automatically, allowing consumers to use electricity at its cheapest, such as overnight.

A household that already charges its EV overnight using a time-of-use tariff can save £332 a year, the Department for Energy Security and Net Zero (DESNZ) said.

The plan would introduce requirements for heat pumps to be sold “smart-ready”, in line with regulations that already apply to EV chargers.

This would give heat pump owners the choice to activate smart functionality and make savings by heating their homes when energy is cheaper, saving around £100 per year compared with the cost of a gas boiler.

A range of appliances including EV smart charge points, heat pumps and battery energy storage systems will have to be able to operate across different tariffs, meaning they are not tied to one energy supplier and consumers are not locked into one plan.

The new regulations for heat devices would apply to hydronic heat pumps, storage heaters, heat batteries, standalone direct electric hot water cylinders, hot water heat pumps and hybrid heat pumps, all up to a thermal capacity of 45kW.

The Government said it planned to put forward secondary legislation on energy smart appliances within the next year.

There would then be a 20-month period to allow manufacturers to update production, before the regulations will be enforced.

Consumers would always retain the option to use their devices in non-smart mode, the DESNZ said.

Energy minister Michael Shanks said: “From EV chargers to heat pumps, smart appliances can do the hard work for consumers by automatically using energy when the price is low.

“We want to put more money in people’s pockets as part of our Plan for Change by making it easier for people to benefit from cheaper off-peak tariffs in their home.

“These new standards will also bring a common sense approach to smart appliances by ensuring different brands and models can operate across different energy suppliers, allowing consumers to shop around for the best deals.”

Previous regulation of smart energy appliances raised concerns about data collection on consumers’ energy usage, and possible manipulation by “threat actors”.

The DESNZ said “tough” new cyber security standards would be introduced for smart appliances, to protect customers and their data from cyber attacks.

The introduction of the market-wide Half Hourly Settlement in 2027 will require energy suppliers to use the most accurate data to offer more smart tariffs that allow customers to choose when to use energy and benefit from savings.

Earlier this month, Energy Secretary Ed Miliband and Ofgem chief executive Jonathan Brearley wrote to energy companies warning that no further delay will be tolerated to the rollout of this new system, to ensure consumers could benefit as quickly as possible.