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Environment Minister made the announcement at the sod turning of the country's most energy efficient property project ever.
The Emerald Project in Ballymun will consist of two and three-bedroom houses, expected to cost residents less than €300 a year to run.
Sustainable Energy Ireland said the dwellings would have a A2 building energy rating, resulting in low heating and electricity prices.
Mr Gormley said: "These seven projects indicate, that in the current environment, that we can make the quantum leap towards carbon neutral housing without any real impact on the overall cost of housing.
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"They will also show that very low energy homes can be built without huge costs, using a lot of the existing technology and knowledge available to the construction industry."
The seven local authority housing schemes will be constructed in Tramore, Co Waterford, Clondalkin in South Dublin, Tralee, Co Kerry, Newbridge, Co Kildare, Roscommon Town, Tahmahon, Co Wexford, and Portlaoise,
"I am informed that the costings for these seven projects are very competitive. I have said on many occasions previously that doing things the ‘Green Way’ is always cheaper in the long run.
"But the preliminary costing for these seven projects are very interesting and show that the costs from the outset represent excellent value for money," said the Minister.
The Emerald Housing Co-operative proposed the Emerald scheme, along with partners Cluid Housing Association, and is expected to take up to 18 months to complete.
An announcement on the main contractor is yet to be made.
The scheme features solar site design, passive ecological design measures, as well as several other green technologies.
It hopes to create a community that will be carbon neutral in terms of heating, will cleanse most of its water and grow some of its own food.
(PR/JM)
