Consumers will welcome the government's new scheme which is designed to promote household energy saving, Friends of the Earth (FOTE) has said.

Under the initiative, from April 1st 2010 residents and communities will be given money for generating their own power via renewable sources such as solar panels and small wind turbines.

Green home campaigner for the eco-action group Dave Timms expressed his confidence that consumers will applaud the opportunity to reduce their outgoings while helping the environment.

"This new scheme is a fantastic opportunity for householders to make money, cut fuel bills and play their part in slashing carbon dioxide emissions," he told the Independent.

He said the move will lead to green job creation as well as helping to safeguard the UK's power production methods in the future.

This could be particularly important given that industry regulator Ofgem warned last week that the energy generation sector needs £200 billion of investment.

Without this, the country could be faced with severe power shortages in the future, it claimed.