RURAL home owners are set to benefit from the government's latest renewable energy incentive.

The domestic Renewable Heat Incentive (RHI) scheme will pay homeowners and landlords for implementing new renewable heat technologies in their homes.

It will pay tariffs ranging from 7p to 19p per unit of heat generated by technologies such as biomass and solar power for seven years.

The scheme is the world's first long-term financial support programme for renewable heat, offering homeowners payments to offset the cost of installing low carbon systems in their properties.

It is open to everyone – home owners, social and private landlords, and people who build their own homes. It is available to households both on and off the gas grid.

Energy minister Greg Barker said: "This is the first scheme of its kind in the world – showing yet again that the UK is leading the way in the clean energy sector.

"Not only will people have warmer homes and cheaper fuel bills, they will reduce their carbon emissions, and will also get cash payments for installing these new technologies.

"It opens up a market for the supply chain, engineers and installers – generating growth and supporting jobs as part of our long-term economic plan."

The Country Land and Business Association said it was a welcome decision to provide a financial incentive for domestic properties to implement renewable heating.

But the real boost for those living and working in rural areas would come from reduced heating bills in the long-term – particularly for people with no access to the gas grid.

CLA eastern region Director Nicola Currie said: "We have campaigned for such a scheme for years so we are delighted that rural homeowners can now reduce their heating bills."

Owner occupiers, landlords and people who built their own domestic properties will receive help to meet the cost of installing wood-fuelled boilers, heat pumps or solar thermal panels.

To qualify for the RHI, properties will need to have a Green Deal Assessment carried out and have loft and cavity wall insulation installed where applicable.

Many rural homes lacked access to the national gas grid, said Mrs Currie.

"Even being just a few metres away from the pipeline can be prohibitively expensive to connect and so rural dwellers can face disproportionately increasing energy costs.

"This expanded support should bring environmental and economic benefits. What is not to like?"

For further details about the scheme, including eligibility criteria and how to apply, visit www.ofgem.gov.uk/domestic-rhi.