Over 550 residents are moving into new Eco-Homes officially rated as 'excellent' thanks to a ground breaking partnership between E.ON and Barratt.

Instead of getting gas from the national grid, residents will be supplied by a community heating network which could reduce carbon emissions by up to 25% and cut heating and hot water bills by up to 23%.

The development at Dalston Square, Hackney, East London, contains a 'decentralised energy centre'. This means that rather than receiving gas direct from an energy supplier, residents and businesses will receive heat, fed in the form of hot water, from a local, low carbon energy centre which will also be producing electricity.

Dalston Square's development of residential retail units and a public library is supplied with heat from an onsite energy centre powered by gas-fired Combined Heat and Power (CHP) units, along with biomass boilers and gas-fired back up boilers, providing 5Mw of heating and hot water and 185Kw of power.

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Each home or business is equipped with a heat meter to measure the amount of heat delivered rather than the amount of gas used. Equipped with smart technology, the meters are read remotely and residents will receive a monthly bill in the normal way.

Residents will receive electricity via the National Grid; however the library and retail units will receive electricity generated in the energy centre through the CHP units.

Under an Energy Services Company (ESCo) agreement, E.ON Sustainable Energy Solutions will manage and operate the decentralised energy centre. The carbon emissions reduction at Dalston Square has earned the site an Eco-Home rating of 'excellent'; the equivalent of a Level 3 in the Code for Sustainable Homes.

Don Leiper, Managing Director of E.ON Energy Services, said: "Across the E.ON Group we have extensive experience in decentralised energy and the development at Dalston Square is a wonderful example of how advances in technology and partnered expertise can have clear environmental and financial benefits for residents.

"Decentralised energy centres, which generate community based, low carbon energy from more sustainable sources, look set to play a major part in helping the UK keep energy prices affordable, carbon emissions down and the country's lights on.

"We remain committed to changing the way people use and view energy and are working hard to continue to reduce the carbon footprint and energy costs of homes and businesses across the UK in all kinds of ways."

(CD/JM)