Homeowners across the country could be handed grants or cheap loans to convert to solar power.
The move would form part of the Government’s commitment to reach clean energy by 2030, with money to be allocated from its £6.6 billion Warm Homes Plan in next year’s spending review.
There are also plans to increase the amount homeowners are paid for selling home-produced electricity from solar panels back to the National Grid.
The Government confirmed its Clean Power 2030 Action Plan earlier this month, which will be led by Ed Miliband, the Energy Secretary. Officials say it will be delivered by the end of the decade.
Government sources have revealed that this could include up-front grants given to fuel-poor households for solar panels and home batteries.
Wealthier households would be offered low-cost, government-backed loans, potentially repaid through electricity bills at less than the rate of their current charges.
The same sources also revealed that increasing the amount households can earn through selling power back to the National Grid is also being considered.
The current rate is 4.1p per kilowatt hours for many households, which is significantly below the average price paid by householders for electricity supplied by energy firms of around 24p.
Gareth Simkins, of trade body Solar Energy UK, said the potential changes would remove a significant barrier to solar investment.
He told the Times: “Cutting the initial purchase cost of solar would do much to improve energy security, boost internal investment and, most critically, cut consumer bills.
“An increasing number of residential solar power installers are offering finance schemes, so this would very much be in accord with that trend. One of the biggest obstacles to growing residential solar power is the purchase initial cost.
“The small-scale solar market is very healthy right now. We’re seeing in the region of 15,000 to 20,000 installations per month and we expect that to grow over 2025. I see no reason why these Government plans wouldn’t see that increase further.”
Separately, ministers are pushing ahead with measures to replace central heating systems with a target to install 600,000 heat pumps a year by 2028.
The pumps can be expensive to install, not least because they require older homes to install expensive insulation. They are also expensive to run because of the cost of electricity to power them.
However, industry leaders say that these electricity costs can be overcome if households combine them with the installation of solar panels on the roof and associated batteries.
Jess Ralston, the head of energy at the Energy and Climate Intelligence Unit, called the scheme ‘a vital part of the government’s clean energy plan.
A Department for Energy Security and Net Zero spokesman declined to confirm or rule out the plans.
They said: “As a first step towards the Warm Homes Plan, the Government has committed an initial £3.4bn over the next three years, with up to 300,000 households set to benefit from home upgrades next year alone.
“The Warm Homes Plan will ensure that new homes are fit for a net zero future, so people can generate their own electricity, cut their bills and at the same time help fight climate change.
“We will set out our full plans to help millions more households benefit from clean homegrown power once the spending review has concluded.”
Earlier this month, Mr Miliband revealed that he was “very sympathetic” to the idea of forcing all new homes to be built with solar panels.
