The Government has announced that it has set aside a budget of £125 million for its Green Deal cash back scheme in a bid to drive the uptake of the greener home initiative.

Under the scheme, homeowners in England and Wales will be able to receive up to £1,000 in cash for any energy saving home improvements made under the Green Deal. However, today’s published rates are only guaranteed for the first £40 million of the budget.

The Green Deal cash back scheme will be available from January 28, 2013 and will be available on a first-come, first-serve basis. Households which make improvements such as loft insulation, solid wall insulation and replacement windows under the Green Deal will be able to qualify for the cash back scheme. The more improvements made, the more cash back the household can receive.

Energy Secretary, Edward 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.”

The cash back offer is limited to one per household but can encompass several energy saving improvements within the household as long as the householder is contributing to installation costs and that the work done is overseen by an authorised Green Deal provider. Private or social landlords can also benefit from the cash back offer if they are paying for the improvement costs themselves.

In addition to pocketing the cash, households have the option to donate the cash back to registered charities and Community Interest Companies who have signed up with the scheme administrator.

The Green Deal cash back scheme will also benefit authorised installers and assessors who can use it to attract customers where they are working with a Green Deal provider.

The new cash back scheme appears to have been welcomed by the industry. Brian Smithers, director of electrical distributor Rexel UK, said: “A headline grabbing cash incentive is exactly what the Green Deal needs to raise awareness amongst consumers. If this initiative is a success, and we see a rush in enquiries, this is where the recently announced Green Deal advisors will be crucial. Solid, impartial advice  from accredited advisors and commitment from accredited providers to install energy saving solutions, will be key to converting those interested by the cash back scheme into early adopters of the Green Deal. It’s down to us, as an industry, to work together and ensure that all the relevant information is easily accessible for households and businesses alike.”