The Department of Energy and Climate Change (DECC) has published new guidance to help local authorities in England improve energy efficiency in residential housing stock.
Councils have been asked to report on their plans to achieve improvements by March 31st 2013, as part of the initiative.
The guidance has been issued under the Home Energy Conservation Act (HECA) and requires local authorities to identify practicable and cost-effective measures that will help to reduce power consumption.
They will also need to consider how local partners, such as social housing providers and community organisations, can help to support their plans.
It was noted by the DECC that the Green Deal will be "significant" in helping councils to achieve their aims, thanks to the initiative allowing the cost of new energy efficiency measures to be attached to a building's electricity meter.
Energy and climate change minster Greg Barker said: "Local authorities have a vital role to play in improving the energy efficiency of residential homes in their areas and helping us meet our ambitious energy targets."
According to Mr Barker, the guidance will help to support and encourage local authorities to realise the advantages to be gained from upgrading homes.
It was suggested the Green Deal will be a "fantastic tool" to help with the project and should be used by all councils to save energy and money.
The DECC claimed local authorities are "best placed" to assess green needs and "know better than anyone else" what improvements are needed in each area of England.
Councils were advised that developing a detailed report in response to the HECA guidance will help to attract potential finding partners to work with the authority.
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