UK householders who generate heat from renewable technologies could get paid “hundreds of pounds a year” following incentives announced by the Government today.

DECC has set tariff levels for air source heat pumps (7.3p/kWh), biomass boilers (12.2p/kWh), ground source heat pumps (18.8/kWh) and solar thermal (19.2p/kWh) as part of the new Renewable Heat Incentive (RHI) scheme. It will also offer an extra set payment of £230 a year where consumers take out metering and monitoring support package for heat pumps and £200 for biomass boilers.

The RHI, which has been running since November 2011, is designed to drive uptake of renewable heat technologies in homes across Britain in a bid to cut carbon, help meet renewable targets and save money on bills.

The news follows the Government’s announcement to double cash for renewable heating projects across the country followed by calls to change budgeting rules for the RHI scheme.

Energy and Climate Change Minister Greg Barker said the Coalition is committed to helping “hardworking families with the cost of living”.

He added: “Investing for the long term in new renewable heat technologies will mean cleaner energy and cheaper bills. So this package of measures is a big step forward in our drive to get innovative renewable heating kit in our homes.

“Householders can now invest in a range of exciting heating technologies knowing how much tariff will be for different renewable heat technologies and benefit from the clean green heat produced. We are also sending a clear signal to industry that the Coalition is 110% committed to boosting and sustaining growth in this sector.”

The scheme will be made available to homeowners, private and social landlords, third party owners of heating systems and people who build their own homes. Applicants will need to complete a Green Deal Assessment before submitting their application and must ensure they have met minimum loft and cavity wall insulation requirements where appropriate.