Incentives designed to drive take-up of renewable heat sources, available now, will help create up to 500,000 jobs in the renewable energy sector by 2020 according to the government.
The introduction of the renewable heat incentive will see £860m of public money made available to support the use of renewable heat in the commercial, industrial and public sectors.
The incentive will pay people a rate for the heat they generate through renewable means and the government estimates it will drive 126,000 installations by 2020.
Energy minister Greg Barker said: "Renewable heat will be a big win for our economy – it will support thousands of green jobs, reduce our dependency on imported fossil fuels, reduce our carbon emissions and help us meet our renewable target."
Recipients of the incentive will be paid between 1p and 7.9p per kWh for biomass boilers, between 3.2p and 4.5p per kWh for heat pumps and up to 8.5p per kWh for solar thermal heat.