Rural communities that wish to provide their own energy from technologies such as anaerobic digestion and biomass will be able to bid for cash from the Government.
The Rural Communities Energy Fund will help rural communities to carry out feasibility studies into renewable energy projects and fund the costs associated with applying for planning permission.
It is intended that projects will then be able to attract private finance to pay for renewable energy kit and get the projects up and running.
As well as anaerobic digestion and biomass, communities will be able to use the funding towards wind, solar, heat pumps, gas combined heat and power and hydro.
The fund will be managed by WRAP.
Energy and Climate Change Minister Greg Barker said: “This investment will help kick start hundreds of clean green energy projects in rural areas across England. This new fund will give aspiring communities access to the cash they need to make this happen.
“Not only can local generation bring people together, boost local economies and drive forward green growth, it can help save money on energy bills too.
“We have already seen more than two hundred great community energy projects begin to blossom thanks to our Local Energy Assessment Fund, and I would encourage as many rural communities as possible to grasp this new opportunity with both hands.”