Launching Environment Week at the Scottish Parliament, he said Scotland could be an international leader for renewable heat.
Mr Finnie said 80 per cent of energy used by the domestic sector went towards heating.
"Renewable heat has great potential to reduce Scottish carbon emissions and Scotland is well placed to become a major player in its development," he continued.
"We have huge forestry and agricultural resources that could be used to generate heat. Newer technologies such as solar heating and geothermal energy also have a role to play."
Meanwhile, Deputy Enterprise Minister Allan Wilson today outlined a detailed study on renewable energy generation carried out by Edinburgh University, which confirmed the Executive's target to have 40 per cent of Scotland's electricity generated from renewable sources is achievable.