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Equans has commenced work to decarbonise 273 of South Kesteven's least energy-efficient homes.
The work, which will see residents' energy bills drop, is expected to be complete by August 2027.
The scheme is part-funded by a £4.2million grant from the Government's Warm Homes: Social Housing Fund.
On behalf of South Kesteven District Council, a range of gas and electric heated bungalows and traditionally built houses will be fitted with solar panels and highly efficient air source heat pumps, helping to cut energy bills and carbon emissions.
This renewable technology will be combined with new loft and cavity wall insulation to help retain heat and reduce energy bills.
Louise Reynolds, Regional Director, at Equans UK & Ireland said: "We're proud to be delivering this impactful project in South Kesteven, which will help residents live more comfortably while reducing their energy bills and carbon footprint.
"By combining eco technologies like air source heat pumps and solar panels with essential insulation upgrades, we're not only improving homes but we’re also supporting a more sustainable future for the community."
Energy Performance Certificate (EPC) ratings are expected to increase to C or above, from previously rating as low as E. South Kesteven District Council’s Cabinet Member for Housing, Cllr Virginia Moran, said: “This major investment will deliver real benefits to our tenants by reducing their household energy bills and at the same time, it will also help reduce the council’s carbon footprint.
