Renewable energy generations schemes which produce up to five megawatts (MW) of electricity have been added into the Energy Bill, according to reports.
The limit of the feed-in tariff has been extended from 3MW and Energy Minister Mike O'Brien has said government would be given a "greater freedom" under the expansion to "set feed-in tariffs at the right level to support household and community power projects".
Ministers extended the limit before the deadline of November 27th, which is the date on which the Energy Bill is sent to receive Royal Assent.
It is hoped the feed-in tariffs, in which householders or groups who generate their own energy would be paid by big energy suppliers, will be in place within 16 months.
Mr O'Brien said: "Our ideal target is for the scheme to go live in April 2010, so that it can be aligned with the financial year of the renewables obligation."
Energy Secretary Ed Miliband met representatives from the large energy providers earlier this week, ahead of the December 1st deadline when the firms must prove to Ofgem they are not over-charging pre-payment meter customers.
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