Consumers who install renewable power generation technologies on their homes will receive a cash incentive under a new government scheme.

Coming into effect from April 1st 2010, the programme will pay residents and communities for the electricity they generate through methods such as small wind turbines and solar panels - even if they use all the power themselves.

For instance, a solar panel generating 2.5 kW of energy could earn people up to £900 per year, as well as slashing annual electricity bills by £140.

It is designed to encourage more people to produce their own power as part of the government's wider scheme to move towards lower carbon fuel generation.

"The guarantee of getting an income on top of saving on energy bills will be an incentive to householders and communities wanting to make the move to low carbon living," said energy and climate change secretary Ed Miliband.

This announcement comes after US president Barack Obama renewed his commitment to tackling climate change by saying that reducing emissions is still on his agenda.