The Scottish government is targeting affordable, environmentally-friendly homes constructed off-site with a £10m fund
The Greener Homes Innovation, following last week’s Scottish budget, is aimed to stimulate investment in green construction.
Applications are being invited from councils, housing associations, developers and builders.
According to the body, assembling walls, floors, pipes kitchens and roofs in factories and then transporting them to the site makes the process faster and less disruptive to the environment.
Edinburgh Napier University recently conducted research showing that the off-site manufacturing sector could be worth £240m in Scotland in the next five years.
Napier has been holding discussions with figures in Russia and the US about trade opportunities for Scottish firms.
Deputy first minister Nicola Sturgeon, speaking in Glasgow during a visit to an off-site manufacturer, said: “Houses are key sources of carbon emissions so new technologies are essential to ensure we deliver energy efficient and low carbon affordable homes.
“The Greener Homes Innovation Scheme will encourage modern methods of construction thereby making more fuel efficient housing widely available, which will help to cut energy bills and tackle fuel poverty.
Homes for Scotland CEO Philip Hogg said: “At a time when energy bills have rocketed, schemes such as this can make a real difference to the provision of desperately needed new homes, while also providing some relief to pressured household budgets.”