Tenants in parts of Fraserburgh will benefit from new cavity wall insulation provided by grants from Aberdeenshire Council and the Scottish Government.
A list of 584 homes have been put forward for the overhaul in the hopes that it will further reduce heating costs in houses.
Cllr Brian Toping welcomed the joint initiative.
He said: “This is going to make peoples houses a lot warmer and they will save on heat bills.
People are delighted that they are saving a lot of money when money is tight.”
The insulation work will be carried out by Everwarm and will be completed by December 2016.
Forty-seven addresses in Inverallochy will also benefit from the work.