It is hoped this project will be finished by March 2011, which may mean cheap gas bills will soon be enjoyed by homeowners across the country.
Director at the Building Research Establishment Wales Nick Tune said: "This investment by the Welsh Assembly government means that not only will families have significantly reduced energy bills, but new jobs will be created and carbon dioxide will be reduced it's a win-win-win."
The Scottish government recently announced from May 24th of this year, households will be able to apply for the boiler scrappage scheme to buy a more efficient device.
Up to 5,000 households in Scotland will get £400 to put towards the cost of a greener boiler.
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