Cost of building zero carbon homes has fallen, according to new analysis

The cost of building homes to the zero carbon standard has fallen dramatically over the last few years – and halved since 2011, new analysis for the Zero Carbon Hub shows.

The analysis, produced by Sweett Group, finds that at today’s prices, the typical additional cost of building a semi-detached house to the zero carbon standard could be less than £5,000, and by 2020 could be less than £3,500. A number of reasons have been put forward for this including the reduced cost of solar PV, changes in the zero carbon definition, and greater efficiency in meeting air tightness standards.

The analysis also shows that additional costs are expected to continue to fall towards 2020.

Rob Pannell, Managing Director at Zero Carbon Hub, said: “What this report shows is that the zero carbon policy, while ambitious, is becoming more cost effective. The challenge is to continue innovating to keep costs as low as possible.”

Paul King, Chief Executive of the UK Green Building Council, said: “The zero carbon homes story is a great illustration of the fact that given long-term clarity about the direction of policy and regulation, industry will invest, innovate and find cost-effective solutions to even the most challenging performance standards.

“This report shows that the cost of delivering zero-carbon homes has halved since 2011 - representing a fraction of the estimated costs when the target for all new homes to be zero carbon from 2016 was launched in 2007 - and is set to fall even further over the next couple of years. Modern, low carbon new homes offer massively reduced energy bills, helping their owners and occupiers to save hundreds, if not thousands, of pounds per year, every year in the future.”

The Zero Carbon Hub will continue to highlight the annual energy savings of new build properties, which by 2016 could save occupants as much as £1,840, or 75 per cent less, compared to a Victorian house of a similar size.

To view the report visit

Published: 10/02/2014

in Policy Updates