Bins will be weighed and points allocated to each household
A recycling incentive scheme where people can earn up to £135 a year is to be extended after a successful pilot.
About 6,500 households in the Royal Borough of Windsor and Maidenhead in Berkshire started the scheme last June.
Residents were awarded points, which can be used to buy goods and services, after wheelie bins were collected and the recycled waste weighed.
The scheme will now be rolled out across the whole borough, including Ascot, by early next year.
The initiative works by fitting electronic tags to the bins with the weight recorded by equipment in the collection vehicles.
More than 5,000 new blue bins will now be delivered.
A maximum number of points will be available, to prevent abuse of the system by people generating extra rubbish for recycling.
During the trial period, 70% of eligible households activated their rewards accounts with more than five million points earned.
Recycling from those involved increased by at least 35%, the council said.
Councillor Liam Maxwell said: "The popularity of the rewards scheme showed us that local people are keen to take advantage of discounts and special offers for recycling.
"[It showed] that incentives, not penalties are the best way of encouraging people to recycle more."