NSW residents will be rewarded for collecting and returning bottles and cans to hundreds of reverse vending machines across NSW from July 2017, Premier Mike Baird will announce on Saturday.

The container deposit scheme is likely to generate $65 million a year for charities, schools and sporting groups, the Total Environment Centre projects.

There is widespread support among consumers for a container deposit scheme. Credit:Erin Jonasson

Environment Minister Rob Stokes said it was a "historic decision" to move ahead with a scheme that had been put in the "too hard basket" by successive governments.

"This is about creating an incentive to deal with our litter problem, and empowering people to do something about it, when so many environmental problems can seem disempowering," said Mr Stokes.