For self-builders, solar PV on a new dwelling is zero-rated for VAT and fits into most custom build mortgages. This page walks through the financial mechanics.
0% VAT on new-dwelling construction
Under HMRC VAT Notice 708, the construction of a new dwelling is zero-rated, and that includes solar PV installed as part of the construction. Self-builders buying materials directly can reclaim VAT on eligible building materials through the DIY housebuilders scheme, within 6 months of finishing for work completed on or after 5 December 2023. The VAT on solar panels guide covers every case.
Custom build mortgages
Custom build mortgages release funds in stages as the build progresses. Agree an invoicing schedule with your installer that matches your lender’s stage releases, for example one payment when the in-roof mounting goes in and one on commissioning.
Smart Export Guarantee (SEG) payments
Once the system is MCS-certified and the home is occupied, you can register with a Smart Export Guarantee supplier. Rates vary widely between suppliers and tariffs; the solar incentives guide lists current rates.
Retrofit grants do not apply
ECO4 is a retrofit scheme and does not fund solar PV on new dwellings. For a new home, the Smart Export Guarantee is the main ongoing income from the array.
Insurance and warranty
Self-build structural warranties are available from providers including NHBC, LABC Warranty, Premier Guarantee and Self-Build Zone. Check what your provider requires for roof-integrated PV before the roof goes on.