Around 500 homes across England will take part in a trial of "whole house energy makeovers" to find affordable ways to make houses more environmentally friendly, the Government has said.
Homeowners in Birmingham, Sunderland, the London borough of Sutton and Stroud will test out the Pay As You Save programme which aims to let householders invest in energy efficiency and small scale green power without being hit by upfront costs.
Under the £4 million pilot schemes, homeowners will make repayments for the green technology over a long enough period so repayments are lower than the predicted savings on energy bills, though the financial packages could also include options in which they pay some of the upfront costs.
The whole house energy makeovers will provide a range of technologies including insulation and small scale renewables such as solar panels or ground source heat pumps to provide energy.
The Government wants to use the pilots to support efforts to roll out the Great British Refurb, in which it plans to improve the energy efficiency of the UK's 22 million existing homes.
Energy and Climate Change Secretary Ed Miliband said: "Increasing the energy efficiency of homes not only helps reduce emissions but will also help reduce fuel bills."
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