This study investigated the technical and economic viability of hedging electricity consumption using weather derivatives and smart contracts. For this purpose, we priced call options to hedge against excess of temperature for 5 Brazilian cities. We also developed a distributed autonomous application (DApp) using smart contracts, which allows individuals to negotiate these financial instruments. Our findings suggest that blockchain technology can be useful in providing a low-cost infrastructure to develop financial instruments to hedge weather-related losses. The cost of providing this platform has been estimated to be less than300 USD. The price of options has been estimated under 50 USD. This is particularly useful for electricity consumers and small businesses in poor countries. In addition, this study provides a comprehensive guide for the development of financial solutions using smart contracts to mitigate climate change impacts.