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New rules designed to help homeowners, schools and hospitals to install climate-friendly generators will be announced today by the Energy Minister.

Malcom Wicks will give details of the funding as part of changes to the Low Carbon Buildings Programme in which the cap on grants will be raised to 50 per cent of the costs.

The scheme is to be extended from tomorrow to give households more time to obtain grants. It takes effect just a few days before planning rules change to cut red tape surrounding the installation of solar panels and other forms of microgeneration.

Mr Wicks will announce the changes to the grants system during a visit to Hampton Hill Junior School, in Richmond, southwest London, which was given a £15,000 grant to help to install 50 solar panels, which are intended to cut heating costs by up to 40 per cent.

The changes to the programme are intended to encourage more homes and community organisations to switch to greener energy supplies to cut carbon dioxide emissions.

“Many people tell me they want to do their bit to help combat climate change but are put off by the hassle involved. These changes remove those barriers,” the minister is expected to say today in his speech.

The changes extend the grant system to 2010 for new applications from householders.

From April 6 householders will be able to install most types of microgenerators without having to seek planning permission so long as there is no obvious impact on neighbours.

They include solar, ground and water-source heat pumps, biomass heating and combined heat and power systems.

Wind turbines will be included once the European Commission approves the move.

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