The Assignment of Rights (AoR) is designed to help homeowners across England, Scotland and Wales access the funds they need to install renewable heating systems. Under AoR, investors pay for all or part of a system and arrange for it to be installed for the homeowner. In return, the homeowner assigns all the payments under the Domestic Renewable Heat Incentive (DRHI) to the investor. The homeowner will be the sole owner of the renewable heating system at all times.
Investors looking to offer systems under AoR must be members of a Chartered Trading Standards Institute (CTSI) Approved Consumer Code, like the Renewable Energy Consumer Code (RECC).
Applying to be an AoR Investor
If you want to become an AoR investor, you can apply to become a RECC member by completing the RECC Membership Application Form and paying a Membership and Application Fee. Your application will undergo full due diligence checks and will include an assessment of your proposed AoR contract for approval.
The AoR Model Contract
BEIS, Ofgem and the participating CTSI Consumer Codes have created an AoR Model Contract that AoR Investors are strongly encouraged to use. The AoR Model Contract contains all the provisions we would expect to see in an AoR approved contract. If you choose to use the AoR Model Contract it should be adapted for your business before making the application, but amendments should not be made to the wording of the AoR Model Contract clauses.
If you choose to use your own contract, rather than the approved AoR Model Contract, it will need to be assessed against the requirements of RECC and the AoR Regulations prior to approval. This will cause a delay to your application being processed and RECC may need to take advice on your contract, including seeking legal advice where necessary. In the event that legal advice is required, the RECC Executive reserves the right to charge you for this service. You will be made aware of any need for legal advice before it is sought and your options will be discussed with you at that stage.
Once RECC has approved your contract, this is the contract that must be used when making an application to become an Ofgem Registered Investor, and for all your AoR sales.
Your membership will run for 12 months from the date on which you become a live RECC member. Each applicant must pay a non-refundable application fee, which covers all the Due-Diligence checks RECC carries out on an applicant, including the assessment of your contract.
However, should you require RECC to approve a new or amended version of your contract at a later date, a non-refundable administration fee may be charged.
Existing Code Members
If you are looking to become an AoR investor, and are already a member of the Code, you will need to have your contract approved by RECC before registering with Ofgem, even if you intend to use the AoR Model Contract. A non-refundable administration fee may be charged. This will not affect your Code Membership for the current Calendar year. At the next point of renewal, you will be required to pay the full AoR investor fee if your current membership category is below 26-50 employees.
In accordance with the AoR regulations, in order to be eligible for DRHI, AoR investors must maintain membership of a CTSI Consumer Code for the full 7 years of the DRHI payment period. Ofgem may remove your AoR investor registration should you lose your CTSI Consumer Code membership.
If you have any questions about becoming an approved AoR investor, please contact us on 0207 981 0850, and we would advise reading RECC’s Guidance for AOR Investors . For further information, see Ofgem’s Essential Guide to Assignment of Rights.
Some fees can be found here. For the AoR Investor only Membership Fee, please contact RECC on 0207 981 0850.
Please note, AoR Investors are required to seek their own advice as to whether they require FCA approval.