The ZEMCH 109 is a zero energy affordable housing prototype that has been designed by NRGStyle in partnership with ZEMCH Network (Zero Energy Mass Customised Housing) and will be constructed in Prestwick, Scotland (Evans et al 2012). The project is aimed at achieving zero energy bills with the support of the application of passive design techniques and renewable energy technologies in order to replace the conventional sources of energy. In particular, this study examines the performance and cost effectiveness of hybrid solar photovoltaic thermal (PV/T) panels connected to a mechanical ventilation heat recovery (MVHR) system which will be applied to ZEMCH 109. The PV/T system converts solar radiation into both electricity and heat in contrast to conventional PV modules that generate electricity alone. The system performance will be simulated with an aim to examine the effect of the panels’ orientation, tilt angle and ventilation air flow. Moreover, the field tests will be conducted after the construction of ZEMCH 109. In this study, both initial and operational costs of the system will be investigated within the timeframe set in order to give an insight about the correlation between the system’s performance and the cost effectiveness.