The ECO+ scheme will target homes that have a low energy efficiency rating and are in the lower council tax bands.
An already existing ECO scheme is targeted at people in social housing, on low incomes or who are fuel poor.
Despite targeting middle earners, the government says about a fifth of the new £1bn of funding will be reserved for the most vulnerable households. Adam Scorer, chief executive of National Energy Action, said the "scheme is not designed to reach the most vulnerable, it's designed to reach people who haven't been able to benefit from previous schemes".
Currently 46% of homes have an energy efficiency rating of C or above, up from 13% in 2010, according to BEIS.
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