A new smart local energy system solution will soon bring some fresh cash to residential property developers, housebuilders, private landlords and social housing providers who install green technologies.

Ofgem has provided the so-called ‘Sandbox’ award, an exemption from specific regulations, to a new electricity company, named Emergent Energy.

The offering allows houses and flats to give the company a lease to use heat pumps, solar PV and electric vehicle chargers in return for long-term payments.

Green technologies are linked through a microgrid.

The company smartly integrates the equipment with communal battery storage, big data analytics and algorithms and offers regular payments to housing companies from the profit they generate from efficiently managing the grid.

It is estimated that could cut 25% off the cost of heat pump and solar PV installations.

Reg Platt, Founder and Chief Executive Officer of Emergent, said: “The ban on gas boilers for all new homes from 2025 and the requirement for all social housing and rented accommodation to EPC C rated by 2030 will require the housing industry to spend hundreds of billions to drastically cut emissions from their housing developments.

“To stand a chance of delivering net zero housing, developers need to generate investible returns on infrastructure spending and the benefits from installing the technology cannot be limited to households in particular tenures or locations.”