Polperro United Renewable Energy (PURE) and Enact Energy have been awarded the cash from the Government's Renewable Heat Premium Payment Communities Scheme which supports the installation of renewable heating and hot water technologies.
It was one of only 38 other community schemes across the country to successfully bid for funding and will use the funding to support homes in Polperro, Lansallos, Looe, Pelynt and Lanreath with the help of Enact.
Homeowners will be able to apply for significant grants to help pay towards the installation costs of "green" technology such as ground and air source heat pumps, solar thermal systems and biomass boilers.
One of PURE's founders, Paul Vaughan, said: "We are absolutely delighted to have secured this funding in what is coming up to our first anniversary.
"We have come a long way in a very short space of time and this will provide a real kick start to help make our goal of making this part of South East Cornwall a leading light in low carbon housing. We have worked very closely with Enact Energy and their help has been instrumental in us securing the funding as has the support from the local community as the expressions of interest we received at our community event in November in particular helped demonstrate the real interest in renewable energy in the area – which is exactly what the funding is designed to help provide."
The funding could trigger capital investment of some £400,000 in renewable heating systems in the area, as well as reducing heating bills and making homes warmer.
Mr Vaughan added: "Whilst we only have a finite number of vouchers from this initial funding, if interest is there, we can go back and seek to apply for more."
Councillor Mark Kaczmarek, portfolio holder for housing and planning at Cornwall Council, has supported PURE's work since its inception last year. He said the grant was great news for PURE.
"By securing this funding PURE can now help deliver key aspects of its low carbon living strategy which is great," Coun Kaczmarek said.
"As a council we are committed to working closely with community groups to support renewable energy and demand reduction projects and are delighted that PURE has been successful in securing funding for this part of Cornwall."
For more information on the project call Enact Energy on 0870 4427601.
