Middle-income households will receive grants worth up to £15,000 to make their homes more energy efficient.
Business secretary Grant Shapps will announce plans next week to fund loft insulation, cavity wall insulation and smart heating controls.
The new fund, called “eco plus”, will be aimed at those who are able to pay, unlike other energy efficiency schemes.
The government has allocated £1bn in funding from existing budgets for the next three years, which will be available to people in council tax bands A to D. The government will meet 75% of the cost of any upgrades.
