The British energy secretary said on Tuesday that plans to develop so-called green homes will reduce foreign energy dependency and tackle climate change.

British government on Tuesday unveiled a strategy by the aims to expand the use of "smart meters," making it easier for consumers to reduce bills and cut their energy usage.

British Energy and Climate Secretary Ed Miliband said," This shows we can meet the national interest of tackling climate change and reducing our dependence on foreign energy at the same time as we help people save money."

A pay-as-you-save loan scheme is also included in the "Warm Homes, Greener Homes Strategy" that lowers up-front costs. Low-income tenants will receive free energy upgrades.

Miliband further said," Making homes more energy efficient will help protect people from upward pressure on bills, tackle climate change, and make us less reliant on imported energy."

The new green homes strategy which aims to cut greenhouse gas emissions in British homes by 29 percent by 2020, has brought new green technology to 5 million homes from 2002-08. (With input from agencies)