Bins will be weighed and points allocated to each household
Residents who recycle can earn points to redeem at nearby shops in a pilot scheme being carried out in parts of Berkshire.
The pilot is being carried out by the Royal Borough of Windsor and Maidenhead.
It hopes to boost the local economy as well as cut the council's tax bill for sending waste to landfill.
Wheelie bins will be weighed when collected and points allocated to each household.
The bins will be fitted with an identification tag which will be read by an automatic reader on refuse vehicles.
The scheme will be run in conjunction with Recyclebank, which runs a similar reward scheme in the US, and the council's waste contractors Veolia.
Liam Maxwell, lead member of the council for sustainability, said: "It will reduce our landfill tax liability and give residents rewards that they can use in local shops and businesses - a great way to help the local economy."
A maximum number of points will be available, to prevent abuse of the system by people generating extra rubbish for recycling.
The US schemes have boosted the amount of waste being recycled by as much as 200% in some areas.
A government plan to introduce "pay as you throw" schemes across the UK, in which people were to be penalised for creating the most non-recyclable waste, was abandoned earlier this year when no councils came forward to take part.