Homeowners are being offered a financial sweetener to make the switch to renewable energy.

The domestic Renewable Heat Incentive (RHI) has been launched by the Government to encourage people to invest in clean energy by off-setting the cost of installing a low-carbon system in their home.

The programme, hailed as a world first, can be used to fund a range of different technologies, including biomass heating systems, air source heat pumps and solar thermal panels.

Greg Barker, minster for energy and climate change, said: “Not only will people have warmer homes and cheaper fuel bills, they will reduce their carbon emissions, and will also get cash payments for installing these new technologies.

“It opens up a market for the supply chain, engineers and installers – generating growth and supporting jobs as part of our long-term economic plan.”

The scheme is open to homeowners, social and private landlords, and people who build their own homes, whether on or off the gas grid, and is designed to bridge the gap between the cost of fossil fuel heat sources and renewable energy.

Guaranteed payments, made quarterly over seven years, are available for households in England, Wales and Scotland.

n For further details about the scheme including eligibility criteria and how to apply visit www.ofgem.gov.uk/domestic-rhi.