The new houses have been described as having high levels of insulation, triple-glazed windows and doors, and a heat recovery system. Solar panels would also be fitted.
Committee vice-convener, Councillor Kate Howie, said: “All of our new-build houses contain state-of-the-art eco measures, and a successful bid for this money would allow us to build more.
“This site in Alyth is a ‘slippage’ project in the council’s house building programme, but successfully securing this Scottish Government money would allow us to bring it forward.
“We will now proceed with putting together and submitting our bid to the GHIS fund.”
Council leader Ian Miller said: “I very much welcome this initiative which would allow us to complete the development at Springbank Road. On a weekly basis I hear from local families who are desperate for council housing and if this goes ahead it would clearly help to ease the acute pressure we currently face. The fact that these new build houses would be highly energy efficient is a bonus for the new residents. This is good news for Alyth.”