Energy Minister, Fergus Ewing, has allocated extra money to help householders install new green heating systems in their homes, as part of a strategy to encourage more people to generate clean green energy.

An extra £5 million will be available from August 2012 to householders as loans of up to £10,000 to fund renewable heat technology projects such as biomass boilers and heat pumps in their own homes.

The loans form part of a wider microgeneration strategy, which aims to encourage people to install microgeneration technologies own homes, businesses and schools.

The strategy sets out the steps the Scottish Government will take and has taken to raise awareness of microgeneration and the financial support available to those considering it, remove barriers to uptake and simplify the planning and regulation system, and ensure there are enough people with the skills to install the equipment. 

The document also outlines the financial support available to people considering microgeneration.

To launch the strategy, Mr Ewing visited Lindsay and Iain MacPhee from Inverness. The couple moved to a new home with various microgeneration technologies including a wood burning stove, solar panels and a hot water system, from an older Victorian home, and hope the move will help them keep their bills down.

Energy Minister Fergus Ewing said: "In Scotland we are blessed with a wealth of natural resources which can be harnessed to power our nation, and increasingly technologies such as solar panels, heat pumps and biomass mean we can harness this energy in our own homes, schools, offices and businesses.

"The Scottish Government has the most ambitious renewable energy targets in the world, but the growth of microgeneration is not simply about meeting targets.

"This work can help contribute to Scotland's transition to a low carbon economy, it can support jobs in Scotland and create new ones, and it can help energy efficiency, reducing bills and taking more households out of fuel poverty.

"This strategy sets out the Scottish Government's ambitions for the microgeneration sector, showcasing what's already been achieved and the work we have done to make it easier for people all over Scotland to take the first steps to moving towards generating their own renewable energy."

Mrs MacPhee said: "We moved here from a larger Victorian house, and one of the things we were looking for was a house that made our energy bills a bit lower. Although we've not been here a full year so we can't do a full comparison, we're expecting them to be much cheaper than where we were before, thanks to the technology we have.

"As well as cutting our bills, the technology like our wood burning stove, solar panels and hot water system means we can stay nice and warm in winter without worrying too much about our impact on the environment. It's all worked very well and I love everything about living in this house."

Daniel Borisewitz, Policy Manager at Scottish Renewables said: "This strategy builds on the milestone outlined in the Low Carbon Scotland report that set a target for at least 100,000 homes having adopted some form of renewable heating system by 2020.

"By boosting the Home Renewables Loan Scheme the Scottish Government has made affordable finance available to a far greater number of households. This will mean that more people can benefit from renewable heat systems and the pending domestic Renewable Heat Incentive.

"The large expansion of the domestic renewable heat sector will not only support existing jobs but will also create new positions and business opportunities across the country."