Details of the Hips energy rating certificate were announced by Housing Minister Yvette Cooper yesterday and green campaigners were among the first to show their approval.

The certificates will give home buyers and sellers A to G ratings for their home's energy efficiency and carbon emissions and form part of the government’s home information pack (Hip)

The energy ratings will be similar to consumer-friendly home appliance ratings and will have to be produced for every home bought and sold in England and Wales from next June as part of the Hip.

They will also show how home owners can improve the energy efficiency of their new home by improving their insulation, for example by installing double glazing, fitting loft or cavity wall insulation or investing in a condensing boiler. As many people plan to make improvements to houses just after purchase, this is a good time to provide such information.

Friends of the Earth climate campaigner Germana Canzi said, "Energy efficiency certificates will provide really useful information for house buyers and should provide a long-term incentive to taking action to save energy in the home. Poor insulation can mean families are spending hundreds of pounds heating the atmosphere - and contributing to climate change."

The World Wildlife Fund also welcomed yesterday’s announcement. Paul King, UK campaigns director of WWF, explained, "The introduction of the Energy Performance Certificate represents a very positive step forward. It means that for the first time people will be given the kind of user-friendly information they need to reduce both the environmental impact of their homes and their energy bills."

The energy certificate will be completed by home inspectors as they make out the home condition report and will take into account items such as loft and wall insulation, extent and type of double glazing and the type of central heating installed. Even simple to fit items like low energy bulbs will be taken into account said surveyors from RICS interviewed by the BBC.