The company has announced the beta launch of the platform, Carbon Cashback, allowing homeowners to get money back for making their homes more sustainable.
It has been developed as part of the government’s DESNZ ‘Green Home Finance Accelerator’ programme and will use smart meter data to record carbon savings.
It will convert the savings into carbon credits, then sell these through the Voluntary Carbon Market.
The Voluntary Carbon Market is where private companies can buy or sell carbon credits, which represent a reduction or removal of emissions. This can unlock finance and allow companies to invest in decarbonisation initiatives.
Homeowners who make energy-efficiency improvements can receive up to £2,000 cashback over 10 years. Payments will be based on verified carbon reductions using smart meter integrations and an approved Verra methodology.
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Businesses that partner with Snugg will be able to give customers access to the platform and gain insights into energy consumption and emissions reduction, which can help them reduce Scope 3 emissions – the indirect emissions in a company’s value chain.
Carbon Cashback is launching in beta to select partners, with a wider launch planned for later this year. Snugg is looking to partner with more early-adopter businesses ahead of a wider launch.
The cashback platform aims to fund the estimated £250bn investment needed to decarbonise homes in the UK and help the country reach its net zero goals. The Voluntary Carbon Market is expected to contribute 5-10% of the total capital needed for residential decarbonisation.
George Wilson, carbon markets lead at Snugg, said: “Carbon Cashback represents an important step forward in incentivising home energy-efficiency improvements by tackling the biggest barrier homeowners face – cost.
“By offering financial incentives, we believe this innovative approach will result in many more homeowners upgrading their homes.”
He added: “For businesses, it’s an opportunity to differentiate their offering while supporting customers on their sustainability journey and use valuable data insights to help meet their net zero objectives. And for the first time, homeowners can easily participate in and benefit from the Voluntary Carbon Market.”
