Age Scotland said that the measure is necessary to help the soaring numbers of pensioners living in fuel poverty. Around six in 10 single pensioner households and four in ten couples in Scotland are affected.
The proposal won support from MSPs in a debate on energy efficiency in the Scottish Parliament last week.
Brian Sloan, Age Scotland’s chief executive, said: “Too many older Scots are spending their later years worrying about how to pay sky-high fuel bills. Many are putting their own health at risk because they can’t afford to heat their homes adequately.
“We need to see more support for owner occupiers to improve the efficiency of their homes. A council tax break would help those who are cash poor and make a real difference to the lives of thousands of vulnerable older people.
“We welcome the political support and hope the government will take it on board as part of ambitious plans to eradicate fuel poverty.”