The Irish Energy Minister has launched a new grant scheme for builders providing low carbon 'A2' rated housing.

The Low Carbon Homes Programme will be administered by Sustainable Energy Ireland, according to Minister Eamon Ryan.

The Minister said the project would offer grants of up to 40% of eligible expenditure to promote energy performance standards for large housing developments.

It is hoped these buildings will compliment the recently adopted Building Regulations (BER).

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The Minister has invested €9 million into the scheme, which is expected to reduce the carbon emissions of participating building to around 'zero' or 'very low'.

To achieve this target a significant element of auto-generation of electricity from renewable technologies such as solar photovoltaic, micro-wind and micro combined heat and power (CHP) will be required.

It has been suggested houses built under the new programme will be at least 70% more energy efficient and produce at least 70% less carbon dioxide than homes built to 2005 standards and will have a Building Energy Rating (BER) of at least A2.

Those homes that have already adopted the Building Regulations scheme are rated as B1; two points lower than the minimum standard of the Low Carbon Homes Programme.

(PR/JM)