BA grant of £1.3m has been awarded to Coastline Housing by the Department of Energy & Climate Change (DECC) from its Central Heating Fund.
This will be added to the £1m pledged by a partnership led by Cornwall Council Public Health service to create a £2.3m fund for upgrading or installing central heating in homes in Cornwall and the Scilly Isles.
Members of the partnership include the Council of Isles of Scilly, Community Energy Plus, Cornwall Housing, Devon and Cornwall Housing Group, Guinness Trust, Inclusion Cornwall and SSE.
The area has been identified as having one of the highest numbers of homes without central heating and levels of fuel poverty in England.
Coastline Housing plans to install ground-source heat pumps in some properties, while others will have electric heating replaced by gas where appropriate.
The exercise is part of the Winter Wellness project, which identified 376 households that are in the fuel poverty bracket and that do not use mains gas as their main source of heating.