Trowers advises on new UK Domestic Renewable Heat Incentive project for social housing
International law firm Trowers & Hamlins has advised Heat RHIght Limited (HeatRHIght), an energy efficiency financing company, on a new funding facility with Legal & General Assurance Society Limited to accelerate the installation of low-carbon heating systems in residential properties across the UK.
HeatRHIght were one of the first companies to secure Registered Investor status with Ofgem in respect of the Domestic Renewable Heat Incentive (DRHI). Their model allows Registered Providers and Registered Social Landlords to receive up front capital payments in return for the assignment of the right to receive future DRHI payments in respect of heat pump installations. This funding route enables social landlords to roll-out low carbon heating to more tenants, improving energy efficiency and helping to address fuel poverty.
Chris Paul, Trowers Partner who advised HeatRHIght on the energy aspects said:
"Net Zero 2050 creates challenges for all sectors, not least the requirement for significant investment in the UK housing stock to improve energy efficiency and make the transition to low carbon heat sources. HeatRHIght's agreement with Legal & General will help more landlords access up-front funding and maximise the benefit of the Domestic Renewable Heat Incentive while it remains available. We look forward to seeing how the funding model develops and we are extremely proud to be involved in such a worthwhile project."
Daniel Gardner, Managing Director at HeatRHIght led the transaction said:
"Our renewables funding solution provides capital payments to Registered Providers and Registered Social Landlords to enable improvements in energy efficiency and a reduction in fuel poverty. In partnering with Legal & General, the initial funding facility significantly supports our mission to become a leading energy efficiency finance provider to the social housing sector."
Legal & General also stated in their press release:
“This long-term financing will accelerate HeatRHIght’s delivery of low carbon heating to Housing Associations across the UK, further demonstrating Legal & General’s commitment to its ESG and decarbonisation agenda."
At Trowers, Katharine Lewis and Simon Valner advised HeatRHIght on the terms of the facility agreement and associated security documentation and Chris Paul advised on the DRHI regulations and connected obligations.
L&G were advised by CMS.