Housing and planning minister Yvette Cooper admitted that the fitting of units such as CHP was far too difficult.
She said her department was keen to cut the planning problems associated with such installations.
The minister told a Town and Country Planning Association conference that a review of planning permission rules aims to make it even easier for 'people to do their bit to help the environment'.
'It is patently absurd that you should be able to put a satellite dish up on your house but should have to wrestle with the planning process for small-scale microgeneration which is no more obtrusive.
'We want far more microgeneration to be treated as permitted development.'
The minister also demanded that local authorities include on-site renewable energy measures in their local development plans to help tackle climate change.