How to cut your storage heater running costs

Storage heaters can be a smart heating solution for the modern energy era when paired with the right energy tariff. While older models sometimes had a reputation for inefficiency, modern advancements mean they can be a strategic asset for affordable home heating. This guide explains how storage heaters work and, crucially, how to optimise their use to reduce running costs in your home.

To cut your storage heater running costs, making the most of off-peak electricity is key. Fuse Energy offers smart, dual-rate tariffs designed to help you leverage cheaper energy, putting you in control of your heating costs. Click here to switch to Fuse Energy today.

Understanding your storage heater

A storage heater is an electric heating system that stores thermal energy during off-peak hours, when electricity is typically cheaper, and releases it gradually throughout the day. This allows you to heat your home using electricity purchased at a lower rate, making it a viable alternative to other electric heating methods that rely on peak-rate electricity.

How storage heaters function

The core principle behind storage heaters is thermal mass. They use electricity to heat up dense internal materials, usually ceramic or clay bricks, during specific off-peak periods. These bricks then slowly release the stored heat into your home over the following hours. The amount of heat stored depends on the "input" setting, while the rate at which it is released is controlled by the "output" setting.

Types of storage heaters

Storage heaters have evolved significantly. Older, manual models often required users to guess settings, leading to wasted energy or insufficient heat. Modern storage heaters, however, offer much more control. They feature advanced thermostats, fan assistance for faster heat distribution, and even smart controls that can learn your heating patterns and adjust automatically. These newer models are better insulated, retaining heat more effectively and reducing standby losses.

Maximising efficiency and control

Getting the most out of your storage heater means understanding its controls and matching them to your lifestyle. This approach can transform a potentially costly heating system into an efficient one.

Optimising input and output settings

The "input" control determines how much electricity the heater draws and how much heat it stores overnight. Set this too high, and you will waste money; too low, and you will be cold. The "output" control regulates how quickly the stored heat is released. A higher output setting means faster heat release, but the heater will cool down sooner.

The trick is to balance these. Start with a moderate input, adjusting it based on the weather forecast and your daily needs. Use the output control to release heat when you need it most, perhaps turning it down when you leave the house and up when you return. Modern heaters with automatic controls can simplify this, but even manual models can be efficient with careful management.

Common myths and misconceptions

Many people believe all storage heaters are inherently expensive to run or inefficient. This often stems from experiences with older, poorly controlled models or from being on the wrong electricity tariff. While it is true that electric heating can be more expensive than gas if not managed correctly, storage heaters are designed to take advantage of cheaper off-peak electricity. When paired with a suitable dual-rate tariff and optimised settings, they can provide affordable warmth. Ignoring modern advancements or tariff optimisation is a common pitfall.

Tariffs and smart meters for storage heaters

The key to affordable storage heater operation lies in your electricity tariff and metering. Without the right setup, you could be paying peak rates for all your heating.

The role of dual-rate tariffs

Dual-rate tariffs, such as Economy 7, offer cheaper electricity during specific off-peak hours, typically overnight. This is when your storage heater should be charging. The cost-saving potential of storage heaters is heavily influenced by using these tariffs. If you are on a single-rate tariff, your storage heater will be charging at the same price as your daytime electricity, negating its main benefit.

Smart meters and off-peak charging

To access most dual-rate tariffs and precisely manage your off-peak charging, you need a compatible meter configuration. Eligibility for off-peak or dual-rate tariffs is determined by your meter's Standard Settlement Configuration (SSC). This means you could be eligible with either a smart meter or a multi-register manual meter that supports dual rates. Smart meters enable automated readings and eligibility for smart-meter-dependent tariff features, allowing you to track your usage more accurately and ensure your storage heater is charging during the cheapest periods. A smart meter provides the control needed to maximise the benefits of off-peak charging.

The Radio Teleswitch service (RTS) switch-off

The Radio Teleswitch Service (RTS) is a legacy system that controls older off-peak electricity meters. This service is being phased out across the UK, with the phase-out beginning on 30 June 2025. This means affected RTS meters will need to be replaced with smart meters by your current energy supplier. Ofgem, the energy regulator for Great Britain, oversees this process. If you have an RTS meter, your current supplier is responsible for upgrading it to a smart meter, usually at no cost to you. Once your meter is upgraded, you will be able to access modern dual-rate tariffs and take full advantage of smart energy management.

Modern storage heaters and alternatives

Heating technology continues to advance, offering more efficient and controllable options for your home.

Advances in storage heater technology

Modern storage heaters are a far cry from their predecessors. They feature improved insulation, reducing heat loss and making them more efficient. Many now come with digital controls, programmable timers, and even Wi-Fi connectivity, allowing you to manage your heating from a smartphone app. Some models also incorporate fan assistance, which helps distribute heat more evenly and quickly throughout a room. These advancements mean modern storage heaters can offer significantly more control and efficiency compared to older, manual models.

When to consider replacement

Assessing whether to upgrade to a modern storage heater or an alternative heating solution depends on several factors, including the age and condition of your current system, your home's insulation, and your budget. If your existing storage heaters are very old and lack basic controls, upgrading to a modern, high heat retention model could significantly improve efficiency and comfort. For some, exploring alternatives like air source heat pumps might be a long-term consideration, especially if they are looking for a heating system that can also provide cooling.

Powering your storage heater with Fuse Energy

Fuse Energy is committed to building a future with power to play with, where energy is abundant and affordable. We believe storage heaters, when paired with our smart tariffs, can be a key part of that vision.

Affordable off-peak energy with Fuse

Fuse's dual-rate tariffs are designed to provide genuinely cheaper electricity during off-peak hours. This allows you to charge your storage heaters without worrying about high bills, aligning with our philosophy of abundance over scarcity. The average UK home uses around 2,700 kWh of electricity per year. By shifting a significant portion of this usage, particularly for heating, to off-peak times, you can make substantial savings.

Seamless control through the Fuse app

Our smart meters and dual-rate tariffs provide the precise control needed to maximise the benefits of off-peak charging for storage heaters. The Fuse app gives you visibility and control over your energy usage, empowering you to optimise your storage heater's charging schedule. This transparent control helps you ensure your heaters are only drawing power when it is cheapest, making your heating more efficient and affordable.

Support for your heating journey

Navigating smart meters and optimising energy use can sometimes feel complex. That is why Fuse offers 24/7 human customer support. We are here to help you understand your energy usage, make the most of your smart meter, and optimise your storage heater settings, ensuring a smooth and efficient heating journey.

Ready to take control of your storage heater running costs? Switch to Fuse Energy today for smart, dual-rate tariffs and 24/7 support. Our online sign-up process is quick and easy, getting you set up with a modern energy experience designed around your needs. Click here to switch to Fuse Energy today.