A WESTCOUNTRY town could design the blueprint for "green living" after winning up to £500,000 in a Government competition.

Totnes, in South Devon, is one of 10 communities across the country to benefit from a £10 million fund set up by the Department of Energy and Climate Change to reduce its carbon footprint.

About a quarter of the UK's greenhouse gas emissions come from heating, lighting and powering electrical appliances in homes. By 2050, it needs to be almost zero if the UK is to cut its emissions by 80 per cent.

Totnes will now receive grants to pay for a mix of "behaviour changing" measures, energy efficiency projects and renewable energy installations. The initiative will benefit 8,500 residents and is being led by Transition Town Totnes.

Rob Hopkins, founder of the movement, which began in Totnes and now involves thousands of communities across Britain and the world, said: "This is a really historic moment for both Transition Town Totnes and for the town itself. We have been engaging people across the community for the last four years in addressing the twin challenges of peak oil and climate change.

"We have managed with very little money and a great many volunteers. This grant will enable us to make a real difference to a wide range of people."

Peak Oil is the moment when experts believe the world's oil reserves will start to decline, leaving millions of people without access to supplies. Next month, the group will launch the "Transition Streets" project which will bring together groups of neighbours across the town to help them learn how to reduce their own energy use and carbon footprint.

They will be offered free or very low-cost loft and cavity wall insulation and draught-proofing, and advice on what type of renewable energy might be best suited to their homes.

Homeowners who decide to invest in solar photovoltaic panels will be given grants towards purchase.

The project also includes Totnes Civic Hall, which has little insulation and spends more than £6,000 a year on electricity. Deputy leader of Totnes Town Council Tony Whitty said of the Civic Hall: "This is fantastic news for the whole community. We will be working to match the grant of £50,000 from this project with the help of Devon County Council so that we can make a real difference to our use of energy on this 50-year-old building.

"The council is pleased to be working in partnership with Transition Town Totnes to get dwellings better insulated and where possible fitted with renewable energy sources."

In return for technical and financial help, people living and working in Totnes will give feedback to the Government and contribute to finding low-carbon solutions from which the whole country will benefit.

Energy and climate change minister Joan Ruddock said: "We've had more than 300 communities register with the Low Carbon Communities Challenge, so there's a real appetite out there to save energy to help tackle global warming and save money on fuel bills."

"The UK has the most ambitious emissions reduction commitments in the world and communities like Totnes will help to develop the policies we need in the future to make the successful transition to a low-carbon economy."

The Department of Energy and Climate Change is now looking for an additional 12 communities in England, Wales and Northern Ireland to take part in the next phase of the challenge.