The feed-in tariff payments come on top of any reduction in gas and electricity bills consumers receive from producing their own energy. As well as new microgeneration projects, any installation which was made after July 2008 would be included in the plans.
Energy and climate change secretary Ed Miliband said: "The feed-in tariff will change the way householders and communities think about their future energy needs, making the payback for investment far shorter than in the past."
Estimates from the government show that power created from a solar panel could generate £900 in income from a feed-in tariff and save £140 on a property's heating bill.
At the beginning of the year, the government also launched a boiler scrappage scheme, which helps households save money on their heating bills by offering financial incentives when they swap an old energy efficient boiler for a newer model.
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