Fareham Borough Council received the grant after a successful bid for funds under the Public Sector Decarbonisation Scheme (PSDS).
The depot, located in Wallington, is home to 180 staff, and services such as Streetscene, waste and recycling, and responsive repairs.
The funding from the Department for Energy Security and Net Zero will assist in low-carbon heating projects.
It will allow the council to implement various energy-saving measures, including the replacement of old gas boilers with air source heat pumps and ageing radiators with low H2O radiators.
The latter requires approximately 90 per cent less water to operate than traditional radiators, thus requiring less energy to heat spaces.
Future improvements, funded by the council, will include insulated roller shutter doors in the transport repair unit, a point of use hot water system, and autometers to efficiently manage energy use.
These initiatives are predicted to end the use of gas at the depot, reducing the site’s carbon emissions by approximately 62.8 tonnes, accounting for 16 per cent of the council’s overall emissions from gas use.
Executive member for planning and development, Councillor Malcolm Daniells, said: “I am delighted that the council has been awarded this significant injection of funding to reduce the carbon footprint of our depot.
“Reducing the council’s carbon emissions is a high priority, and this funding is another step forward in meeting our carbon neutral target as set out in the council’s climate change action plan.”
Director of public sector decarbonisation for Salix, Ian Rodger, said: “We are pleased to support Fareham Borough Council in its journey to become carbon neutral by 2030.
“The UK has ambitious net zero targets, and we all have a lot of work to do.
“Every day at Salix we are working with organisations to meet these goals and reduce our overall emissions.
“We have a common mission; to save the planet.”
The plans for the necessary infrastructure improvements, along with enhancements to the working conditions, will be presented to the council’s executive in the autumn.
