Chris Huhne has revealed that 150,000 jobs in the heating industry will be supported by the Renewable Heat Incentive, the details of which were announced today.
The government will provide up to £860 million towards the incentive which pays individuals and businesses for using renewable heating systems such as biomass boilers, heat pumps and solar panels.
Huhne said: "This incentive... [will] help the UK shift away from fossil fuel, reducing carbon emissions and encouraging innovation, jobs and growth in new advanced technologies."
The department believes that, by 2020, the renewable heat sector will have grown to include around 13,000 installations in the industry.
Those eligible include pubs, libraries, schools and even power plants as well as community projects, provided a single installation is providing heat to more than one house.
A full system of RHI payments will be available to households from October, 2012. In the meantime, over a quarter of the first year's budget will be guaranteed for up to 25,000 household installations with an RHI Premium Payment.
The scheme is now pending approval by Parliament.