£3m plan to give tenants green heating boost

The Department of Energy and Climate Change said local authorities and housing associations could bid for a share of the money, which is part of the £15m “premium payment” fund that aims to boost uptake of renewable heat technology.

The scheme will target homes in particular which are off the national gas grid, where householders have to pay for expensive oil for heating.

It is hoped the technologies, which include solar hot water panels, biomass boilers and heat pumps which use warmth from the air or ground to heat houses, will prove more efficient than old heating systems and protect families from the volatile costs of fossil fuels.

The measures could also be eligible for the renewable heat incentive (RHI) which comes in next year, which will pay people for the amount of heat they produce from green sources.

The incentives were proposed by the previous Government and had been due to start in April, but homes will now not get payments until October 2012, with the £15m aimed at encouraging people to install the technologies in the meantime.

Energy and Climate Change Minister Greg Barker said: “Improving and greening Britain’s homes must make strong financial sense if we are to provide a real sustainable alternative to expensive old heating systems.

“This new programme is directly targeted at many of the people who will be struggling to pay their heating bills next winter.”