Designers at Cardiff University have proved George Osborne wrong by constructing what they claim is the sort of house he once described as impossible.
The requirement for homes to be zero carbon by 2016 was scrapped by the government, because they thought it would prove to be too expensive.
But the University have built an award winning home that comes within the £800-1000 p/sq metre requirement for social housing and will also be profitable by producing excesses energy to sell back to the grid.
The house, near Bridgend, took just 16 weeks to construct, has glazed solar photo-voltaic (PV) panels fitted into the south-facing roof, allowing the space below to be naturally lit.
This reduces the cost of bolting on solar panels to a standard roof.
The house uses solar generation and battery storage to run both the combined heating, ventilation and hot water system, and the electrical power system, which includes appliances, LED lighting and a heat pump.
The solar air system preheats the ventilation air, which is also warmed by a warm water store.
Professor Phil Jones, who led the project, said: "Using the latest technology, innovation and design, it is indeed possible to build a zero carbon house at low costs, creating long-term benefits for both the economy and the environment.
"The cost of our carbon-positive house was similar to that of the social housing benchmark, making it an affordable option for house builders. We hope that this can be replicated in other areas..."
The government has also reduced funds for home energy efficiency as part of its austerity drive, however it is hoped with innovations such as these the Chancellor can rethink the economics and be more forward thinking in his approach.
Learn more about the Zero Carbon House