Act on Energy, a member of the region's fuel poverty task force, received a total of £909,358 as part of the Energy Redress Scheme.
The funding was given by the Energy Savings Trust which uses money collected by regulator Ofgem from energy companies.
It will be used as part of the Warmer Homes West Midlands programme set up to help struggling households in the region keep warm.
Charity chief executive Rachel Jones said: "This an exciting programme that comes at a critical time, enabling households to have a warm and affordable home is vital especially during the current coronavirus pandemic. This programme will enable us to support vulnerable residents across the region and provide the support and guidance they need to live in warm and affordable homes.
"The programme will also enable us to recruit outreach workers directly across the local community so we can really understand and support the needs of a community and work together to address the impacts of those who are living in fuel poverty."
The scheme will help more than 7,000 households, will create jobs and help support the West Midlands Combined Authority's (WMCA) target of becoming carbon neutral by 2041.
The programme will also improve the health and wellbeing of people with pre-existing cold and damp related medical conditions through energy saving advice, energy saving measures and debt advice.
West Midlands Mayor Andy Street said: "The WMCA remains utterly committed to tackling the region’s climate emergency by 2041, and addressing fuel poverty is a key part of those plans. This is why the Warmer Homes West Midlands programme is so important, and I am pleased we have received this new funding to enhance our work.
"As well as making homes more fuel efficient by helping people keep their homes warm, addressing fuel poverty will also help to improve people’s health by eradicating damp homes, and improve their economic situation by making energy bills more affordable."
Act on Energy, a member of the WMCA's fuel poverty task force set up by Energy Capital, hopes the project will tackle the issue.