Coalition launched to fund decarbonisation of homes using carbon credits

A coalition of businesses dedicated to financing the decarbonisation of British homes without cost to the Government or households through the sale of UK-generated carbon credits has launched.

The PNZ Group brings together three businesses with years of expertise in the net zero sector – Arctica Partners, Arete Zero Carbon, and Dynamis Associates. Together, the PNZ Group will deliver a renewable closed-loop ecosystem to finance the climate transition of the housing sector, in what has been described as a “first-of-its-kind” venture.

Under PNZ Group’s scheme, houses will be retrofitted with measures such as heat pumps and additional insulation, financed by corporate buyers looking to fund local projects which deliver benefits in their areas.

Carbon credits, generated from the emissions reductions produced by the retrofit activity, will be sold on the Voluntary Carbon Market, with funds generated from the sales channelled back to fund additional retrofit work.

Part of the income from every credit sold goes back into PNZ Group’s proprietary Power Purchase Agreement (PPA), which funds the installation of solar PV and battery systems in households that could otherwise not afford it. The system is installed free of charge, and the cost of consumed energy generated is always below the National Grid price cap. By purchasing credits from these schemes, buyers help to extend PPAs to more fuel poor households.

A pilot project, called Retrofit Credits, took place in association with the Housing Associations’ Charitable Trust (HACT) – 22 housing associations received over £7m in funding for retrofit.

Martin Smith, CEO of PNZ Group, said:

In order to meet our ambitious legally-binding net zero targets, it’s vital to tackle the significant challenge posed by our carbon-intensive housing. PNZ Group has developed a ground-breaking and first-of-its-kind solution to deliver transformative retrofit activity, without costing the government, or households, a penny. We’re proud to formalise our partnership today through the creation of the PNZ Group to continue delivering outstanding retrofit activity to change lives all over the UK.

Andrew van Doorn, CEO of HACT, said:

We have been working with Arctica Partners on the Retrofit Credits initiative since the beginning of 2022. As Arctica Partners becomes part of PNZ Group, we’re excited by what our partnership will bring and the impact we can create expanding the Retrofit Credits service, so that the scale and speed of the decarbonisation of UK housing stock can be accelerated, helping to deliver on the UK’s Net Zero ambitions and commitments.