DECC is funding £25 million to tackle fuel poverty across England.
More than 7,000 households will benefit from the Central Heating Fund, which awarded 20 projects to help people living in homes which are not connected to the gas grid.
Local authorities will install central heating systems in fuel poor households which is expected to help save up to £1,000 a year on energy bills.
UK Energy Minister Lord Bourne said: “We are determined to help hardworking families keep their homes warmer for less and we recognise that households not connected to the gas grid can pay over the odds for their heating.
“So we are taking action by backing these innovative projects that will help the people who need it most by focusing on central heating for the first time – cutting bills and keeping homes warmer.”