Green groups have welcomed a European Commission proposal to release billions of euros of structural funding to pay for the installation of solar panels and double-glazing in homes across Europe.

The Commission will on Wednesday ask member states to change funding rules to allow local authorities to use EU regional funds to pay for energy-saving measures in low-income households. Current regulations restrict funding for household energy-efficiency to the new member states in eastern Europe. Even there, EU money can only be used in communal areas of shared social housing.