Leeds City Council confirmed the work is to be completed by 2024.
The £24million upgrades mean thousands of residents can expect cheaper and more reliable heating as well as warmer and healthier homes.
A number of council-owned tower blocks in Armley, Gipton, Harehills, Killingbeck, Seacroft, and Little London will have their existing heating and hot water systems upgraded through the project.
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By improving the efficiency of council housing the 'Clustering for Warmth' initiative will help protect vulnerable residents from cold-related illnesses, tackle fuel poverty and support skilled local jobs.
The use of ground source heat pumps will also mean that the upgrades will cut carbon emissions in Leeds by an estimated 950 tonnes per year.
Cenergist, a specialised energy efficiency company, has been appointed to design, build and deliver six new low carbon district heating network 'clusters'.
As part of the scheme, 12 jobs, four apprenticeships and 10 work experience placements for Leeds residents within the construction and energy sectors will be created by the scheme.
