Mr Dennis Templeman, 58, of Ross Court Estate, took jackpot after his lucky ticket was drawn from hundreds of other recycling boxes and bags from all over Herefordshire.
His winning ticket, which included his postcode and house number, was plucked out at the Re-Box depot in Ross-On-Wye.
The competition is being run as part of the Target 75 campaign, a joint initiative between Herefordshire Council and Worcestershire County Council in partnership with WRAP (Waste and Resources Action Programme).
The scheme aims to boost participation in kerbside recycling across both counties to more than 75 per cent by March 2006.
Three more lucky winners will be announced in the near future.
Only residents that are covered by a kerbside recycling collection scheme can take part.
They must fill in their lucky ticket, a tear off slip found in the Target 75 newsletter, and place it in their provided recycling boxes or bags.
Winners also get the opportunity to visit the Rotherwas site or the re-box recycling depot to discover more about how their household waste is recycled.
“I just couldn’t believe it when I was told that I had won. Out of all the boxes and bags to choose from and mine was picked – how lucky was that,” said Mr Templeman.
“I think it’s a great idea to offer this prize because not only does it encourage greater participation but it also raises awareness of recycling.”
Mr Templeman has invested his winnings in premium bonds.
Viktoria Salisbury, Target 75 Project Assistant, added: “It isn’t often you get offered the chance of £100 just for taking out the rubbish.
“We hope more residents will try their luck at the competition.
“We hope the competition also raises awareness and use of the kerbside recycling scheme.”
Target 75 is part of the Mission Possible campaign which aims to increase kerbside recycling and minimise waste going to landfill.