Speaking at the Liberal Democrat conference in Glasgow on Tuesday, Ed Davey will announce phase two of the GDHIF, which will open to customers in November.
The initiative, which has government funding already secured, follows the first phase of the GDHIF which closed in July.
The GDHIF exhausted its £120 million budget in only seven weeks due to “overwhelming demand”.
The announcement from Davey will also partially undermine Labour’s promise to improve the energy efficiency of more than five million homes within ten years, made by the shadow energy secretary Caroline Flint two weeks ago.
Davey will also tell delegates: “The good news is that we are on track to meet our energy efficiency target.
“One million homes more energy efficient, using our Energy Company Obligation and the Green Deal.”
Alongside this, the energy secretary will say that the “radical shift to smaller suppliers” coupled with the additional funding and installation of energy efficiency measures will result in lower energy bills and “dramatically cut fuel poverty, reversing Labour’s failure there too.”
Davey is expected to say: “I’m proud that energy independents are supplying nearly 8 times as many people as they were under Labour.
“And I want to see their market share grow more – to 30 per cent or more by the end of the decade. That will mean lower energy bills and better customer service for people across Britain.”
The energy secretary will also highlight the pledge made in the Liberal Democrat’s pre-manifesto to cut council tax for more energy efficient homes, “of at least £100 a year.”