The Green Deal Home Improvement Fund offers cashbacks and incentives on such things as double-glazing, insulation and boilers.
The first round was criticised for being complicated and low on take-up.
But Energy Secretary Ed Davey told the BBC that "we have learned from what people were telling us", adding that round two was "very generous".
Some £120m has been set aside for the revamped programme, with money being issued on "a first come first served" basis, Mr Davey said.
Depending on the energy-saving project carried out, some money is available only to those who claim within 12 months of moving into their property.
Other benefits are offered irrespective of when they moved in.
If people meet all the conditions, households in England and Wales will be able to get up to £7,600 back, the Department of Energy and Climate Change said in a statement.
The first Green Deal was launched last year in a blaze of publicity, and hailed as one of the biggest home improvement programmes for decades. But just 1,754 signed for phase one.
Mr Davey said a key difference with the new phase was that "these are grants, not loans, and are very generous... We are trying to do everything we can to help people with their energy bills."
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