Over the next seven years, Warmer Homes Scotland will install measures such as insulation, heating and domestic renewables in households identified as fuel poor.
People in rural areas, like Dumfries and Galloway, will be offered the same service as those in easier to reach parts of Scotland.
The Home Energy Scotland campaign has also been launched to encourage Scots to call the hotline 0808 808 2282 for free advice on how to reduce fuel bills, as well as more information on home energy improvement schemes.
And they have released some home energy saving tips to help all householders- see below.
First Minister Nicola Sturgeon said: “Through this scheme, the Scottish Government will deliver the best possible help to thousands of people who are blighted by fuel poverty, struggling to keep their homes warm and pay their energy bills.
“Warmer Homes Scotland is tailored to give vulnerable households living in fuel poverty access to measures to make their homes more energy efficient.”
And Mike Thornton, of the Energy Saving Trust, added: “This scheme helps householders who are struggling with their energy bills with really practical support, helping them right the way through the process from the time they call up through to when the work is done.
“Vulnerable householders will receive their own personal adviser and all customers will be supported through any complex issue or challenge they may face along the way.”
Home energy saving tips and fast facts
* Turning down your home thermostat by just 1°C can help cut your annual heating bill by 8 per cent
* Fitting a thermostat can help maintain the temperature of a room, hot water cylinder or boiler while not wasting excess energy.
* Insulation keeps the heat in your home and making sure your home is properly insulated is a great way to save energy, money and do your bit for the environment
* Adding loft insulation could save you up to £140 per year
* And by topping up your loft insulation to the recommended 270mm you could save up to £35 a year in heating costs.
* Insulate your hot water tank to keep your water hot for longer
* Wall insulation can really help keep the heat in your home – cavity wall insulation could save you around £160 per year off your heating bills
* Insulating under the floorboards on your ground floor will save you up to £55 a year, and you can seal the gaps between floors and skirting boards to reduce draughts too