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The Low Carbon Buildings Programme (LCBP) has already allocated ?6.8m in to householders and, following the addition of an extra ?6m in the Budget, applications are set to open for the remaining ?11.9m.

Since it launched in April 2006, the LCBP has directly funded 2175 installations on homes. This includes 242 mini-turbines, 313 Solar PV projects and 1467 solar thermal heating systems.

Announcing the re-launch of the scheme Mr Darling said:

?The microgeneration industry has tremendous potential in the low carbon economy. Products are already available on the high street and are starting to become recognisable on our skylines. This grant scheme is designed to maximise carbon savings, demonstrate potential and help the sector become more commercially competitive in the long term.

?It is part of a wider government programme worth ?86m that will also award grants for larger scale installations on schools and other public buildings.?

The grant scheme was put on hold in March while the application process was streamlined to make sure it benefits the sector in the long term.

Key changes to the application criteria include the removal of the monthly cap and a new requirement to have planning permission before applying.

The Government is currently consulting on removing the need for planning permission for the majority of microgeneration installations but planning permission must be in place for LCBP grant applicants in the meantime.

The DTI say that the changes are designed to overcome delays in the take-up of grants. It remains to be seen if the demand will be so great at the relaunch, because the maximum grant has been reduced to ?2,500, and there are tighter deadlines to exercise the grant.