The Welsh Government has committed £10m to upgrade the energy efficiency of at least 1,000 existing social homes.
The Optimised Retrofit Programme (ORP) will bring together councils and housing associations to test different ways of turning social homes into zero carbon homes using new energy efficient materials and technologies.
It will also consider the materials homes are made from and how they use and store energy.
Minister for housing and local government, Julie James, said: ‘If it is successful, Optimised Retrofit will set the standard for retrofit schemes in Wales and be the forerunner of an approach and an industry to decarbonise all 1.4 million homes in Wales by 2050.
’But it is critical we get the approach right first. Just throwing money at the problem doesn’t work and can end up in the installation of poorly fitted measures that aren’t right for the house, don’t work and have to be replaced in just a few years.’
The Welsh Government said the programme will create up to 15,000 jobs in Wales by 2050, and develop the local green economy.
Minister for economy and transport, Ken Skates, said: ‘The Optimised Retrofit Programme will stimulate a new retrofit industry, providing a real boost to the Welsh economy. This scheme has the potential to drive up private sector investment, help people develop new skills and provide important training opportunities. Innovation will be a key part of this through new techniques and ways of using materials.’