The manager of the Warmer Kiwi Homes programme, Eddie Thompson, said the $170,000 would be open to homeowners on a first in, first served basis.
"If you're in Whanganui and you want to take advantage of that funding then contact Energy Smart now ... because it's not going to last. It might last the whole year but it might not.
"The more people from Whanganui who call in Energy Smart and say, 'yes I want an assessment', the more of that funding will go to Whanganui."
In those cases homeowners who receive the grant will need to pay the remaining third of the cost of insulation.
The Whanganui Regional Health Network will provide the remaining third of the cost to fully cover the cost of insulation for homes it deems are a health concern.
"[The] Whanganui region overall has pretty poor housing stock and cold, damp housing - particularly for our children and older people - is detrimental and precipitates respiratory-related illnesses," said the chief executive of the Whanganui Regional Health Network, Judith MacDonald.
"In an earlier programme where our focus was on children who had admissions to hospital due to asthma, the evaluation post-implementation of insulation was most telling. Parents reported a significant improvement in the health of the entire family, less visits of the doctor and no admissions to hospital."
Since EECA's Warmer Kiwi Homes initiative kicked off in July this year, 73 Whanganui residents have had grants to help insulate their homes.