Over 600 homes in Broomhill, Greenock will be made more energy efficient.
Work began in March to install high performance solid wall insulation on the outside of all properties.
A new district heating system has also been introduced.
The project is due to be completed by April 2016.
Scottish Gas is undertaking the work as part of the Energy Companies Obligation (ECO) initiative.
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Stuart McMillan MSP visited the project and praised scheme.
He said: "I am delighted to visit this project in Greenock and see where the funding will be spent to improve energy efficiency in homes.
"It’s important that households are supported to ensure their homes become more energy efficient, so it costs less to heat.
"Therefore, I welcome this investment by Scottish Gas and I’m sure the residents will also welcome having warmer and more energy efficient homes."
Willie Croft, Property & Development Services Director at River Clyde Homes, added: "These are exciting times as this major investment programme gets underway.
"Customers can see that things are really beginning to happen in Broomhill, with scaffolding going up on the low-rise blocks in the Ann Street area in preparation of the recladding and insulation works."
(LM/CD)
