How to Price Green Energy Work as a UK Tradesperson
Pricing green energy work is one of the areas where tradespeople most commonly get it wrong – either leaving significant money on the table by undercharging, or losing jobs by quoting in a way that confuses customers about grants and net costs. Both mistakes are avoidable once you understand how the pricing and grant structure actually works.
Why Green Energy Pricing Is Different
Standard domestic trade work is relatively straightforward to price – materials plus labour plus margin. Green energy installations add several layers of complexity:
- Government grants change the customer’s perceived cost – the £7,500 Boiler Upgrade Scheme grant means customers see a net price significantly lower than your gross quote. How you present this affects conversion rates substantially
- VAT treatment varies – most qualifying renewable energy installations attract 0% VAT until March 2027. Applying the wrong rate is a compliance error
- Jobs are multi-stage and multi-day – you need to account for survey time, installation days, commissioning, and certification, not just the install itself
- Equipment costs are higher and more variable – a heat pump unit alone can cost £3,000–£8,000. Protecting yourself against cost increases between quote and installation matters more on these jobs
- Your certification has a cost – MCS certification, ongoing renewal, insurance uplifts, and additional training all represent business costs that need to be built into your pricing model
How to Price an EV Charger Installation
Typical price range: £750–£1,350 fully installed
A standard home installation – 7kW smart charger, single-phase supply, up to 10 metres of cabling, no major consumer unit work – typically falls in this range in 2026.
Breaking it down:
- Equipment – the charger unit: £400–£800 depending on brand (Ohme, Myenergi Zappi, Easee One are commonly installed)
- Labour – 2–3 hours at a reasonable electrician day rate: £300–£600
- Materials – cabling, trunking, fixings: £30–£80
- Extras – longer cable runs add cost; consumer unit upgrade adds £150–£450; earth rod where required adds £100–£200
⚠️ EV charger installation is standard rate VAT (20%) – there is no 0% VAT relief on EV charger work, unlike heat pumps and solar. Apply 20% on your invoice.
The EV Chargepoint Grant gives renters and flat owners up to £350 off – the customer applies separately after installation. Being OZEV-approved means customers can access this grant, which is worth mentioning in your quote as a selling point.
How to Price a Heat Pump Installation
Gross quote: £8,000–£15,000 | Customer net cost after BUS grant: varies
The most important concept in heat pump pricing is the difference between your gross quote and the customer’s net cost after the Boiler Upgrade Scheme grant of £7,500.
As an MCS-certified installer, you apply for the grant on the customer’s behalf and deduct it from their invoice. You get paid the full gross amount, then claim the £7,500 from Ofgem after installation (typically 4–6 weeks). You need the cash flow to absorb the grant element in that window. Always present both figures clearly in your quote – customers fixate on the net cost, and a quote that shows only the gross figure looks far more expensive than one showing the post-grant price.
✅ Heat pump installations attract 0% VAT until March 2027. Apply 0% – not 20%. Getting this wrong overcharges the customer or eats your margin.
What to include in your heat pump quote:
- Heat pump unit (specify model, output in kW, efficiency rating)
- Hot water cylinder if required
- All pipework, fittings, and materials
- Electrical supply upgrades if required
- Radiator upgrades if required (heat pumps operate at lower flow temperatures – some older radiators may need upsizing)
- Controls and smart thermostat
- Commissioning and handover
- MCS installation certificate
- BUS grant application on customer’s behalf
- Labour – broken down by day if multi-day installation
Protect your margin: include a validity period on heat pump quotes (30 days is standard) and a materials escalation clause for anything beyond that. On a £10,000+ job, a price increase between quote and installation can significantly dent your margin.
How to Price a Solar PV Installation
Pricing driven by system size (kWp) and installation complexity
Typical domestic installations in 2026:
- 3–4kWp system (6–8 panels): £5,000–£7,500 installed
- 4–6kWp system (8–12 panels): £6,000–£9,500 installed
- With battery storage added: add £2,500–£5,000 depending on battery capacity
✅ Solar PV installation also attracts 0% VAT until March 2027. Apply 0% on your invoice.
There’s no upfront grant for solar PV equivalent to the BUS heat pump grant. The financial incentive for customers is the Smart Export Guarantee (SEG), which pays them for electricity exported to the grid – mention this as a long-term benefit in your quote but don’t factor it into your pricing. Battery storage and solar PV combined installations are increasingly requested – adding battery work significantly increases job value.
Don’t Underprice Because the Customer Got a Grant
This is the most common pricing mistake in the green energy market. Some installers reduce their margin on heat pump jobs because the customer is receiving a £7,500 grant and they feel uncomfortable charging full price. This is a mistake. The grant is government money funding the customer’s transition to low-carbon heating. It has nothing to do with what your time, expertise, and certification are worth. You’ve invested in training, MCS certification, insurance, and specialist skills – your margin should reflect that. Price at full commercial rates and let the grant do its job of making the net cost palatable to customers.
Quoting Green Energy Work Properly
Given the complexity of green energy quotes – multiple line items, grant deductions, 0% VAT, multi-stage jobs – doing this on a Word document or spreadsheet is inefficient and error-prone. Tradify lets you build detailed quotes with saved line items for standard equipment and labour rates, apply the correct VAT treatment, include grant deduction line items, and convert accepted quotes directly to jobs and invoices.
Try Tradify Free for 14 Days →Frequently Asked Questions
For a standard home installation – a 7kW smart charger, single-phase supply, up to 10 metres of cabling – the typical range in 2026 is £750–£1,350 fully installed, including the charger unit. The equipment alone (Ohme, Zappi, Easee One) costs £400–£800. Labour for a 2–3 hour installation adds £300–£600. Extras like longer cable runs, consumer unit upgrades, or earth rods add further cost. VAT is standard rate 20% on EV charger installations – there is no 0% relief available, unlike heat pump and solar work.
The gross installation cost for an air source heat pump in a typical UK home typically falls in the range of £8,000–£15,000 in 2026, depending on the property size, system specification, and any additional work required (radiator upgrades, electrical upgrades). The Boiler Upgrade Scheme provides a grant of £7,500 which MCS-certified installers apply for on the customer’s behalf – so the customer’s net cost is typically £500–£7,500. Always present both the gross price and the net price after grant clearly in your quote. Heat pump installation currently attracts 0% VAT until March 2027.
Heat pump installations and solar PV installations currently attract 0% VAT until March 2027 (reduced from 5% as part of a government measure to promote renewable energy adoption). EV charger installations are charged at the standard rate of 20% – there is no 0% relief available for EV charger work. Apply the correct rate on every invoice: applying 20% on a heat pump installation overcharges the customer; applying 0% on an EV charger installation is a compliance error. VAT rates and eligibility criteria can change – always verify current HMRC guidance before quoting.
As an MCS-certified installer, you apply for the Boiler Upgrade Scheme grant on the customer’s behalf and deduct it from their invoice. You invoice the customer for the full gross amount, then claim the £7,500 from Ofgem after the installation is complete and the MCS certificate is issued – this typically takes 4–6 weeks. You need sufficient cash flow to absorb the grant element in that window before Ofgem pays you. Always present both the gross installation price and the net price after the grant deduction clearly in your quote – customers focus heavily on the net cost.
No. This is the most common pricing mistake in the green energy market. The Boiler Upgrade Scheme grant is government money funding the customer’s transition to low-carbon heating – it is not a signal that you should charge less for your expertise. You have invested in MCS certification, specialist training, insurance uplifts, and tools. Price your work at full commercial rates that reflect those costs and the value of the service. The grant makes the customer’s net cost palatable without any need for you to compress your margin.
VAT rates, grant amounts, and eligibility criteria change regularly. Always verify current HMRC guidance and GOV.UK grant information before quoting. Some links on this page are affiliate links; if you sign up through them we may earn a commission at no extra cost to you.