The new scheme will allow homes and businesses to pay for energy efficiency improvements, such as loft insulation, solid wall insulation and replacement windows through expected savings on their energy bills.

Homeowners can get up to £125 cash back on energy efficiency improvements.

DECC secretary Edward Davey remarked that the Green Deal will provide a choice for consumers wanting to make their homes more energy efficient.

"The Green Deal also presents a great opportunity for businesses of all sizes to take advantage of this transforming market," added Davey.

The cash back offer also applies to private or social landlords who can benefit if they are the property improver and are paying the costs themselves.