Consumers with higher incomes will also benefit from the Home Insulation Scheme – which is managed by the Energy Saving Trust – by receiving a discount for their insulation.
Communities minister Alex Neil commented: "Offering householders a means to keep the heat in is a great way to help families, the elderly and others to save money.
"If we have a winter like last winter this will be more important than ever.
"This is an excellent example of the Scottish government working with Scotland’s green industry to stimulate our economy, save households cash and drive down carbon emissions," he added.
According to WWF Scotland, homes account for nearly one-third of Scotland’s carbon emissions.
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