Assignment of Rights

The Government has introduced changes to the Domestic RHI Regulations in two stages. The first stage of changes to the Domestic Scheme came into force on 20 September 2017. The second stage of changes came into force on 22 May.

For more information about changes to the scheme and what they mean to you, please see our changes to the scheme webpage and our Factsheet: Important changes to the Domestic RHI Scheme.

What is Assignment of Rights?

Assignment of rights is an option to help householders and organisations access finance to overcome the upfront cost of a renewable heating system. This option allows an investor to assist in meeting the costs of the installation of a domestic renewable heating system for households and/or organisations. Households and organisations are then able to assign their rights to RHI payments to “nominated” investors.

Applicants must be the owner of the renewable heating system at the application stage and throughout the RHI membership. Investors aren’t permitted to own any part of a plant for which they will be nominated to receive payments. Both participants and investors will have to comply with their ongoing obligations and responsibilities if accredited onto the scheme. 

If you’re an applicant

The application process follows a similar process to regular applicants to the Domestic RHI. During your application process, however, you can choose to assign your RHI payments to a registered investor. If your application to the Domestic RHI Scheme is successful, your registered investor automatically becomes your nominated registered investor; no action is required from you or your investor.

For full details on what you need to provide and your responsibilities, please read the Essential Guide to Assignment of Rights.

If you meet all scheme eligibility requirements, you may become a participant under the Domestic RHI Scheme. You must then comply with your ongoing obligations and responsibilities. If you fail to comply with the scheme rules, Ofgem may withhold payments to your Nominated Registered Investor and revoke your membership on the scheme. 

If you’re an investor

If you want to enter an Assignment of Rights agreement with an applicant, you as an investor must join either The Renewable Energy Consumer Code (RECC) or the Home Insulation and Energy Systems Contractors Scheme (HIES) to become a Registered Investor and agree to their terms. For more information about the codes see the Consumer Protection Codes

You can only be nominated for RHI payments by an applicant once you are a Registered Investor. Investors aren’t permitted to own any part of a plant for which they will be nominated to receive payments at application stage and throughout the RHI membership. 

Investors will be required to provide a current copy of the contract with which they intend to enter into assignment agreements with applicants*. The contract(s) must fulfil the relevant consumer code’s requirements. Ofgem will not be able to grant registration to the scheme until suitable assessment of the contract has been completed by the relevant consumer code. 

If you and your applicant’s assignment nomination is successful, you automatically become their Nominated Registered Investor and RHI payments will be made directly to you. Please note that only RHI payments can be assigned; participants cannot assign their Metering and Monitoring Service Package (MMSP) payments.

Once you become a Nominated Registered Investor, you must comply with your ongoing obligations and responsibilities under the Domestic RHI scheme. If you fail to comply with the scheme rules, Ofgem may withhold all or part of your payments of your assignments and/or revoke your registration. 

*A model contract will be available on RECC and HIES’s website at a later date

For further information, please see our Essential Guide to Assignment of Rights