Smart functionality to be required in new heat pumps under updated appliance standards

New rules are set to require heat pumps and other electric heating devices to include smart functionality so that consumers can benefit from a wider range of cheaper energy deals.

Under regulations announced by the Department for Energy Security and Net Zero, appliances such as heat pumps, hot water cylinders and heat batteries must be sold with the ability to operate in smart mode. This function allows them to automatically use electricity at cheaper times of day, such as overnight, when demand is lower.

Electric vehicle charge points are already subject to similar requirements. The updated standards expand this to a wider range of appliances, giving consumers more opportunities to access time-of-use tariffs that offer discounted rates for off-peak electricity use.

The appliances must also be interoperable — meaning they can work with any energy supplier. This is intended to make it easier for consumers to switch providers and find the best available deals, without being tied to the company that supplied the device.

According to government estimates, an EV owner charging their car overnight could save more than £300 a year compared to using standard rates. Households replacing a gas boiler with a smart heat pump on an off-peak tariff could cut annual costs by around £100.

The measures are part of the government’s Clean Power Action Plan and are aimed at improving energy efficiency and reducing peak demand on the grid. By shifting usage to times of lower demand or high renewable output, the government expects long-term savings on energy infrastructure costs.

Cybersecurity standards will also be introduced to protect users and their data from potential cyberattacks linked to connected appliances.

The changes come ahead of the Market-wide Half Hourly Settlement, due in 2027, which will require energy companies to use more accurate consumption data. This is expected to expand access to flexible tariffs and ensure billing reflects when energy is used.

The new rules will apply to heat devices up to 45kW in thermal capacity, including hydronic heat pumps, hybrid systems and direct electric heaters.