A major barrier to renewable heating uptake is initial expense. The Assignment of Rights (AoR) is for homeowners who wish to install renewable heating, but don’t want the upfront costs of doing so. Whilst there are huge savings (and earnings) to be made over the long-term, the initial capital outlay can be prohibitive.
The Assignment of Rights (AoR) means that a separate investor can fund the initial purchase of the system, and potentially the ongoing maintenance (depending on the agreement). Homeowners nominate the investor as part of the domestic RHI sign up. The investor can not own any part of the system. In return, the homeowner assigns RHI payments to go to them as a form of repayment.
Investors are paid directly via the homeowner’s domestic Renewable Heat Incentive (RHI) payments. The Domestic RHI scheme pays over the course of 7 years,
The scheme covers heat pumps, biomass boilers and solar thermal panels.
The Assignment of Rights (AoR) is administered by Ofgem using registered and approved investors. The homeowner and investor agree to a mutual contract overseen by Ofgem.
Both parties will need to agree to a final contract agreement in order for the AoR to commence.
The process of applying for the Assignment of Rights is straightforward, if your renewable heating system and property meets official standards. You can apply for the Domestic RHI scheme online, as long as you meet the requirements. Your investor will need to be approved and listed in the system before you select them and you will need a unique reference number to assign rights over to your selected investor.
The investor and participant must agree on a contract with which to manage the Assignment of Rights agreement. Ofgem will review suitability as part of the registration process and will have reviewed a “model” contract in order for the investor to be registered in the system. Both parties will need to agree to a final contract agreement in order for the AoR to commence.
If you would like to find out more about renewable heating technologies and how you could get financial help from a nominated investor give us a call on 0161 330 7739 or fill the form below.
Energy Gain UK offer market leading carbon consultancy services along with an award-winning construction division that installs the latest renewable energy systems.