What's the best energy tariff for your home?
A complete 2026 guide to choosing the best energy tariff.
By choosing the best energy tariff for your home, your energy can start working in your favour. That means lower costs, fewer surprises, and the peace of mind that you’re getting the best deal for how you actually live.
In this guide, we’ll explain what the different energy tariff types mean, outlining everything you need to consider to find the best fit for your home and lifestyle.
What is a fixed energy tariff?
A fixed tariff locks in your unit rates and standing charge for a set period (usually 12–24 months). This means your rates won’t change during that time, even if wholesale energy prices rise or fall.
What is a variable energy tariff?
A variable tariff can go up or down depending on wholesale energy prices or regulatory changes. In the UK, many standard variable tariffs track the energy price cap set by Ofgem, which changes periodically. You can see the current price cap here.
What is a smart energy tariff?
Smart tariffs (also called time-of-use tariffs) charge different rates depending on when you use electricity. They’re designed to encourage energy use in off-peak periods, by rewarding you with cheaper rates when demand on the grid is lower. For example, electricity might be cheaper overnight and more expensive during peak evening hours. A smart tariff is perfect for those with EV chargers, heat pumps, or batteries – as you can charge or run appliances overnight when rates are lower.
For example, one Good Energy customer combined solar panels and a home battery with our Smart EV tariff, offering a cheaper rate between midnight and 5am. By charging their battery overnight and using solar during the day, they saved an additional £192.42 compared to a standard single-rate tariff – bringing their total annual energy bill savings to £478.70. You can read their full savings breakdown here.
To access certain tariffs, particularly smart tariffs, your home may need a smart meter to measure your usage more accurately. If you don’t already have one, Good Energy offers free smart meter installation to make switching simple.
4 key considerations when choosing the best energy tariff
1. If you need price certainty
Fixed tariff: Your unit rate stays the same for the length of your contract. This can make it easier to forecast your bills over the year.
Variable tariff: Your unit rate can go up or down during the year. This can make bills less predictable, but you could benefit if market prices fall.
Smart tariff: Your rate is often fixed for a year, but changes depending on the time of day you use electricity. This unlocks cheaper costs if you can adapt when you use energy.
Key takeaway: If you want complete price certainty and protection from price rises, a fixed tariff offers the most stability. But, if you’re comfortable with some fluctuation, a variable or smart tariff could offer greater savings potential.
2. If you need flexibility
Fixed tariff: You’re tied in for a set period and may pay exit fees if you leave early.
Variable tariff: You can usually switch anytime without exit fees.
Smart tariff: May be fixed-term or flexible, so you should check before signing up.
Key takeaway: If you want the freedom to switch easily – for example, if you’re moving or want to hold out for better deals – a variable tariff usually offers the most flexibility. Fixed tariffs trade flexibility for stability, while smart tariffs reward flexibility in when you use energy and can be fixed-term or flexible.
3. When you use electricity
Fixed tariff: You pay the same rate no matter what time of day you use electricity.
Variable tariff: You pay the same rate at all times of the day/week, even if prices change overall.
Smart tariff: You pay different rates depending on the time of day you use electricity.
Key takeaway: If you can shift your usage to evenings or overnight, a smart tariff could lower your costs. If not, fixed or variable may be simpler.
4. Technology in your home
Fixed tariff: Your rate doesn’t change based on how or when you use energy.
Variable tariff: Your rate doesn’t change based on how or when you use energy.
Smart tariff: Often designed for homes with EV chargers, heat pumps, solar or batteries that can use cheaper overnight electricity.
Key takeaway: If you have an EV charger, heat pump, or battery – a smart tariff can make your technology significantly cheaper to run by taking advantage of lower overnight rates.
More considerations when choosing the best energy supplier
Don’t forget: tariff type and energy source aren’t the same. A fixed, variable or smart tariff simply determines how you’re charged – it doesn’t tell you where your electricity comes from, how transparent the supplier is, or what kind of service you’ll receive. The best tariff for your home should also come from a supplier you trust.
When choosing the best supplier, it’s worth looking at:
- Whether the supplier offers genuinely renewable energy and how they source it.
- Their customer reviews and ratings – especially when it comes to customer service.
- Their standing charges – particularly if you use very little energy.
Ultimately, there’s no single “best” tariff – only the one that best fits how you live. The right choice comes down to your habits, your home, and how much control you want over your energy costs. Take the time to match your tariff to your lifestyle, and you can feel more confident about what you’re paying for.
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