The government has revealed that homes using renewable energy provided through the National Grid will not qualify as zero carbon.

The announcement was contained in guidance published by the Department for Communities and Local Government to help industry respond to the challenge of delivering zero carbon homes by 2016.

The guidance states that only renewable energy sources connected directly to the development will be considered eligible for inclusion in zero carbon schemes. The decision means that developers will be unable to include the purchase of green power from offshore and remote windfarms in the UK.

Gas and electricity grids are still allowed to be connected to zero carbon homes as long has the home produces zero emissions over the year.

Housing and planning minister, Yvette Cooper, said: “We need to build more affordable homes but we also need to cut carbon emissions at the same time. That is why we are working with industry to meet the zero carbon challenge.”

The declaration, set down in guidance on the Code for Sustainable Homes, comes in tandem with the start of policy that sees zero carbon homes costing less than £500,000 becoming exempt from stamp duty.