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What is the Assignment of Rights?
The Assignment of Rights (AoR) scheme helps Social Housing Providers, Local Government and Homeowners to purchase and install renewable heating systems with financial support from an Ofgem approved and nominated investor. To repay the investor for their upfront funding of a system, any future Renewable Heat Incentive (RHI) payments received are directed back to the nominated investor. See below for more info on the RHI scheme.
Who is the Assignment of Rights for?
The Assignment of Rights was introduced to help Social Housing Providers, Local Government and Homeowners overcome the initial barrier of cost when opting for a renewable heating system. Although it is widely known that these systems offer great long term savings, initial purchase and installation fees can be off-putting for many. As an Ofgem Approved Investor we can fully or partially fund the system purchase to helping overcome the cost barrier. What’s more, with Funded Renewable experience in this industry you can benefits from our support in ensuring the design, supply, installation, commissioning and maintenance are all completed in accordance with the regulations required for the installation to be Ofgem and MCS approved.
How does it work?
Applying to AoR is not overly complicated but does rely on a variety of contracts being established. We have summarised the key steps below:
1.) It’s essential that the customer must be the owner of your renewable heating system. An investor will not and can not own any part of the system itself. They are simply offering to fund the upfront costs on your behalf.
2.) Clean Air Ventures has worked closely with Shoosmiths to develop a robust contract which has recently gained approved from Department for Business, Energy & Industrial Strategy. This contract will detail purchase and installation costs of the renewable heating system and the requirement for future RHI payments to be redirected to the nominated investor.
3.) As the owner of the equipment the customer can then apply for the domestic RHI scheme as usual. During the application there’s a prompt asking whether you’d like to assign all future RHI repayments to a nominated investor.
4.) Only applicants can complete an application to the Domestic RHI for accreditation, an investor cannot do it for them. Clean Air Ventures and our facilitation partners will be on hand to offer support in completing the application and are working directly with Ofgem and BEIS to reduce the administration burden.
5.) Once the application is complete Ofgem will begin repaying the investor and the funding will be drawn down to pay the suppliers of the equipment and installation.