The figures come in research commissioned by DCLG from Cyril Sweett, Faber Maunsell and Europe Economics to support the regulatory impact assessment of its Building a Greener Future policy statement issued in July 2007. Research to Assess the Cost and Benefits of the Government’s Proposals to Reduce the Carbon Footprint of New Housing Development says annual fuel bill savings could be up to £387 per dwelling and bigger benefits are available in larger scale developments or where developments can share district-wide technologies.

The report examined the effect of revising Part L1A of the Building Regulations by 25% in 2010, 44% in 2013 and all new homes zero carbon in 2016. It warns that costs will rise by around a fifth or more but would, over time, decrease as the costs of key technologies fall.

It notes there is potential for significant change in the dominant low carbon technology after 2016 so the technologies used to implement the 2010 and 2013 changes will not necessarily help the industry to deliver zero carbon. After 2016, photovoltaic, biomass CHP and wind are expected to dominate and a major spike in demand is likely to put a strain on the market’s ability to respond; a review of biomass CHP is needed. The report says by 2020 these policies could generate 1.4% of total UK electrical energy.

It recommends further work on offsite renewable energy sources’ potential to supplement or replace onsite generation and says this would have a fundamental impact on the cost of delivering carbon reduction. Further work is also recommended on biomass technology, regulatory regimes and local generation and the role of energy supply companies.

But the report also highlights a growing conflict between the potential of low carbon buildings and the equal need to decarbonize transport. It says technology constraints make major reductions more difficult in city infill sites because lack of roof and façade space constrains installation of photovoltaics. But such developments score far better on transport carbon than out-of-town. The report recommends fundamental redesign of technologies to facilitate zero carbon inner city development.

u www.communities.gov.uk/publications/planningandbuilding/housingcarbonfootprint