Householders who use energy efficient measures from January next year could get as much as £1,000 cash back from the Government.

A total of £125 million is up for grabs as part of DECC’s Green Deal initiative, which helps homes and businesses make energy-saving improvements such as loft and cavity wall insulation.

The cash back scheme is a first-come, first-served offer and the more work households have done, the more cash back they can get. It is also available to private and social landlords if they are in charge of improving the property and are paying the costs themselves.

Energy Secretary Ed Davey said: “The Green Deal will provide unprecedented choice for consumers wanting to improve their homes and make them more energy efficient. This cash back offer will help get the Green Deal off to a flying start. It really is a great offer – the more work households have done, the more energy they stand to save and the more cash they receive.

“The Green Deal also presents a great opportunity for businesses of all sizes to take advantage of this transforming market – and now is a critical time. Whatever your business does in this sector, the Green Deal will have an impact. So I say to businesses large and small – gear up, get training and get ready to take advantage of the Green Deal.”

Audrey Gallacher, Director of Energy at Consumer Focus welcomed the scheme but suggested the cash back shouldn’t just be available for early birds.

She said: “Improving your heating and stopping your home leaking heat can make a big difference to both your energy bills and your carbon footprint. It’s very welcome to see the Government providing cash incentives to those who take up the Green Deal scheme early.

“But the Government needs to provide incentives to all customers, not just early-adopters, to ensure wide-spread take-up in the long-term. This could mean moves such as council tax breaks or similar benefits for taking up energy efficiency measures.”

The offer is only available to households in England and Wales.