Concerns have been raised over the government's proposed strategy of rolling out the controversial Merton Rule nationwide.
The opt-in regulation currently allows local authorities to make a commitment that all new developments will reduce carbon emissions by at least ten per cent through the use of on-site renewable energy equipment.
But under the newly-outlined Planning and Energy Bill the policy could be made obligatory across the country, something the Home Builders Federation (HBF) has said may hinder the delivery of new housing.
HBF director John Slaughter said that the installation of micro-generators is simply not cost-effective for many properties and that money could be much better spent on other green technologies.
Alluding the energy-conserving devices such as double glazed windows, Mr Slaughter said: "It's sensible to improve the energy efficiency of a building first. The question is how do you achieve the energy input on the designated zero-carbon basis - that may in some cases be through micro-generation, but it won't always be.
Prime minister Gordon Brown has committed to seeing three million new homes built by 2020 in order to address the country's chronic housing shortage.
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