Work has started on Saxon Weald's new eco-homes at New Street, close to Horsham town centre.
The 38 rented homes will save 90% more energy than standard homes, resulting in energy bills of around just £100 a year for future residents.
The scheme features 12 homes which will be the first social housing in the Southeast to meet the PassivHaus standard. The remaining properties will meet levels four and five of the Code for Sustainable Homes, with features such as triple-glazed windows, photovoltaic roof panels and extra thick insulation.
The £6 million development has received just over £3 million in funding from the Homes and Communities Agency, as well as investment from Horsham District Council.
David Standfast, Saxon Weald's Chief Executive, said: "This is a real flagship development for us - homes of the highest standard which will not only save our residents money, but will also help Saxon Weald do its bit for the environment."
Councillor Andrew Baldwin, Portfolio Holder for Housing and Community Development at Horsham District Council is delighted with the scheme. He said: "This is a major step forward for us. We have worked hard with Saxon Weald and West Sussex County Council to achieve a development that will be a credit to us all. It will bring much-needed affordable family housing to the town centre."
Jason Glue, head of Osborne's Homes Sector said: "This scheme will be an exemplar in sustainable, affordable housing. As part of the construction we are using Innovaré i-SIP structural insulated panels to form walls, floors and roofs quickly and efficiently. Photovoltaic and solar thermal panels will also be fixed to the roofs for generating either electricity or hot water for the homes, helping to reduce energy costs for residents."
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