A Victorian terraced house in Leicester is to be given a £150,000 makeover to cut its energy consumption by 80%.
The two-bedroom property on Cottesmore Road, owned by the East Midlands Housing Association, is being used to test new technology.
Insulation will be fitted to internal walls, the main living area will be moved upstairs and a pod bedroom is to be installed in the loft.
Tenants and researchers will then study its efficiency and practicality.
The loss of internal space due to insulation means a living room will be turned into a kitchen, the living room moved upstairs into one of the bedrooms and the new bedroom fitted in the loft space.
Property Refurbishment Officer at the housing association, Tarif Javid, said this was one of the most ambitious parts of the project.
"It is not a traditional loft conversion. We are creating a pod in a factory, which will be created in the shape of the roof space - a triangular shape - and manufactured to very high energy efficiency standards.
"We aim to bring that on a crane and literally remove the roof, drop the pod in and put the roof back."
Tenants will be brought in to test the house and successful elements will be rolled out to other properties.
The scheme is funded by a central government project to improve the energy efficiency of social housing and is being conducted in partnership with De Montfort University.