Households across the UK can now take energy saving measures without forking out a lot of money up front, thanks to the new Green Deal that has been launched today.

The government initiative offers loans for householders who are looking at making their homes more ecologically and economically sound.

Energy saving improvements such as insulation, new boilers and the installation of solar panels are all subsidised under the Green Deal, in a move that will reduce homeowners' annual energy bills as well as reducing carbon output.

Those interested in taking advantage of the deal will be visited by an assessor, who will take a look at the person’s home and ask necessary questions about energy usage.

This will be followed by approved Green Deal installers, including DIY chains and energy companies, advising on potential home improvements. Recommendations can include double-glazing, insulation or new heating systems.

Loans for installations will be repaid by an automatic addition to energy bills, with an interest rate no higher than seven per cent. This is no more than what a house would be expected to save in energy costs in the first place.

Richard Jardine, the manager director of Pro Renewables said: "The Green Deal loan scheme allows people to invest in renewable systems, with the added benefit that it guarantees they will get their money back in energy saved.

“Furthermore, because a seller can pass on the outstanding loan amount to a new buyer, they are not tied into a home or business if they do need to move on," he added.

The Independent says that fitting solar photovoltaic panels is one of the greenest improvements you can make to a property. In addition to a saving of over a tonne of CO2 per year – as estimated by the Energy Saving Trust – consumers can also be paid through the government’s feed in tariff, making carbon reduction an even more attractive prospect.