The funding, part of the Government’s Warm Homes programme, will help make up to 800 council homes more energy-efficient and cheaper to run.
The money will be used to retrofit homes with better insulation and energy-efficient heating.
This is expected to reduce energy bills, improve living conditions, and cut carbon emissions.
The upgrades will focus on homes that are currently difficult to keep warm, particularly those identified in a recent housing survey as having low energy ratings, damp, or mould issues.
The council has also committed an additional £9.1 million to the project to maximise the benefits for residents.
Mayor of Lewisham, Brenda Dacres, said: “This new round of funding allows us to make up to 800 council homes warmer, healthier, more energy efficient and cheaper for council tenants to heat, which will considerably improve the lives of many Lewisham residents.”
The funding is part of a £1.29 billion investment by the Government to retrofit social homes across the UK as part of their Warm Homes Plan.
The council recognises its role in coordinating efforts, attracting investment, and providing training opportunities for local energy efficiency installers.
While the programme focuses on socially rented properties, additional grant-funded opportunities are available for low-income and vulnerable private residents.
The council has also adopted a new Housing Retrofit Strategy, which aims to fully retrofit all homes in the borough to achieve climate action goals and reduce housing inequalities.
The estimated cost of fully retrofitting all homes in the borough is £3.2 billion.
The strategy adopts a pragmatic approach, focusing on achievable, immediate steps that can be taken, demonstrating success through innovation and partnerships, and exploring new opportunities to help achieve climate goals.
Councillor Will Cooper, cabinet member for better homes, neighbourhoods, and homelessness, said: “This funding will make a real day-to-day improvement to residents’ quality of life.
“Energy-efficient homes are more comfortable homes and reducing bills puts money back into residents’ pockets – as well as reducing carbon emissions.
“As with many public services, we are facing stark choices as we struggle to keep up with rising costs and increasing demand.
“This funding is an absolute lifeline for residents of our worst performing buildings, and we have already committed to match the amount from our own capital investment programme.
“This means over £16 million has now been earmarked specifically for energy efficiency improvements in our stock.”
