The 55-year-old male occupant, who was the only person in the Rice Street house, was asleep on a couch in the rear of the building when the fire started in the second bedroom. 

The cause of the fire is being investigated by both CFA fire investigators and Ballarat CIU detectives and it is still not known if it is suspicious.

A CFA spokesperson said the occupant was initially treated on the scene by paramedics for smoke inhalation and minor cuts before being transported by ambulance to Ballarat  Health Services Base Hospital.

The weatherboard house caught fire at 11.24am and was well alight when firefighters arrived. Three units brought it under control by 12.10pm.

Two small grassfires also broke out yesterday, one at Eganstown and another at Mt Clear, both about 2.30pm.