Called the Renewable Heat Premium Payment Scheme, the programme is targeting households without mains gas.
"We are keen to promote this funding to ensure as many rural households as possible benefit from it before the funding ends in March 2012," said a government spokesman.
Eligible systems include biomass boilers, ground and air source heat pumps, and solar thermal hot water systems.
Funding is also available to registered social landlords to improve their housing stock.
The scheme runs throughout Great Britain and focuses on homes not heated by mains gas.
These homes can apply for grants for air source and ground source heat pumps, biomass boilers and solar thermal hot water systems.
Grants for solar thermal are also available to households connected to the mains gas grid.
Minimum energy efficiency criteria must be met before homes qualify for grants, and households must monitor the performance of heating system.
The Renewable Heat Premium Payment Scheme is scheduled to end in March 2012, but is cash limited.
Some £15 million has been set aside to help households and social landlords under the scheme.
Once the money has been allocated, no further funding will be available.
The scheme is being run by the Energy Saving Trust on behalf of the Department of Energy and Climate Change.
For details, visit the trust website here.