The solar settlement (Solarsiedlung) in Freiburg, Germany, has been widely hailed as an eco-city or green city neighbourhood and a blueprint for sustainable urban development. However, as there is a noticeable lack of critical analysis of what constitutes Solarsiedlung as an “eco-city”, this paper studies narratives and practices of sustainable urban development. First, we look at Solarsiedlung as a best-practice model – a narrative that was produced and perpetuated by architects, urban planners, investors and academics celebrating this neighbourhood as a technologically leapfrogging, economically sound and socially integrated project. Second, we explore the everyday practices and lived experience of the residents in Solarsiedlung. Bringing together these two perspectives, we contribute to a more comprehensive understanding and critical reading of the interplay between the ecological, economic and social dimensions of sustainable development as seen from different viewpoints. Findings indicate that Solarsiedlung as a best-practice model is embedded in growth-oriented neoliberal strategies that are in conflict with the everyday practices and lived experience of the residents. Our findings put into question the widely assumed transferability of best-practice models in sustainable urban development.