The UK government has launched a new energy scheme, the Green Deal, to make homes and businesses in the country more energy efficient.

The scheme allows home-owners and entrepreneurs to make investments into infrastructure improvements while the savings on energy bills take care of the costs involved.

UK’s department of energy and climate change has earmarked £125m towards the government-funded Cashback Scheme.

UK Deputy Prime Minister Nick Clegg remarked that the Green Deal will help thousands of homes to become energy efficient while allowing people to pay less for the infrastructure upgrades required.

The Green Deal will provide solid wall insulations for 8 million homes in the country while 4 million households could benefit from cavity insulation by 2015.

Energy and Climate Change minister Greg Barker noted, "The Green Deal will transform the energy efficiency market and puts consumers in charge.

A government-backed nationwide campaign will be undertaken to impress upon the country’s populace, the benefits of the Green Deal.

According to DECC estimates, 38% of green house gas emissions in the country are the result of inefficient heating systems at homes, powered by fossil-based fuels.

The Green Deal will help better utilization of energy reducing green house emissions and pollution, climate concerns arising out of the emissions.