Local planning laws should be relaxed to allow households to install greener energy sources more easily and generate their own power.

A new study by the New Local Government Network (NLGN) claims that UK households should receive grants and tax rebates to install renewable energy sources such as solar panels and wind turbines, with planning legislation relaxed to boost uptake of microgeneration.

According to the report, Finding the Energy:Domestic Microgeneration and Planning, possible ways of encouraging more people to embrace microgeneration include interest-free loans from local authorities for installation and working alongside network partners to consult more closely with residents.

Report author James MacGregor suggests that a more ambitious approach to incentivising green energy use is needed from the government and councils should be given more freedom to respond to public support in their area for domestic renewable energy schemes.

Under the current system, government grants of up to 30 per cent are offered to households to cover the costs of installing solar panels or wind turbines.

Ministers are currently debating whether or not to allow households to install wind turbines and solar panels without planning permission in areas where minimal disruption will be caused to neighbours.

Founded in 1996, the NLGN is a non-profit, independent think tank that promotes the modernisation of local government, seeking to "transform public services, revitalise local political leadership and empower local communities".

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