The announcement was made by Cabinet Secretary for Communities and Local Government Aileen Campbell at the SFHA’s annual conference in Glasgow.
The funding is being provided for measures, such as insulation and internal improvements, to social rented accommodation.
To receive the funding, projects must also include activity to reduce a building’s carbon footprint, such as ground source heat pumps, biomass energy from organic material and solar panels.
Sally Thomas, SFHA Chief Executive, said: “The SFHA has been calling for additional support for social landlords to reduce fuel poverty and increase energy efficiency, and we are pleased that the Scottish Government has announced this £3.5 million and hope it is the first step towards permanent funding.
“A recent survey by SFHA reported a 73% increase in tenants at risk of or experiencing fuel poverty, with welfare reform given as one of the main causes. Addressing energy efficiency alone will not be enough to eradicate fuel poverty, and we will keep lobbying the UK Government to raise social security in line with inflation to ensure no one has to choose between heating or eating.”