Ofgem has published the 2024 to 2025 ROC recycle price, which was £8.04 [1]. This is the value energy suppliers were paid per ROC they provided to Ofgem. This is redistributed back to renewable energy generators on the RO scheme.
The Renewables Obligation scheme was a government initiative to incentivise renewable generation. It was available from 2002 to 2017. Generators on the scheme receive a set number of Renewable Obligation Certificates (ROCs) per MWh of power generated, depending on the technology and capacity of the asset. This is known as the ROC banding.
Offtakers have to provide a set number of ROCs to Ofgem per obligation period (1st of April to 31st of March). This obligation level is decided from the total number of MWh an offtaker supplies, and is announced by the Department for Energy Security and Net Zero (DESNZ).
For example, in the 2024 to 2025 period the obligation level was 0.491 ROCs per MWh of electricity supplied in England, Wales and Scotland, and 0.192 ROCs per MWh of electricity supplied in Northern Ireland [2]. Energy suppliers that have not provided sufficient ROCs will have to pay the buyout price to meet the obligation level.
The buyout price of a ROC is set at £30 in 2002 prices, and rises with inflation. It rose with the RPI until 01-04-2026, but will from then on rise with the CPI (read our blog on indexation changes here). The 2024 to 2025 buyout price is £64.73.
When all suppliers have paid the buyout price, the buy-out fund is redistributed back to suppliers depending on how many ROCs they provided. What they receive per ROC they provide is known as the ROC recycle price. The suppliers would then redistribute the payment back to generators on the ROC scheme.
What you will receive depends on the agreement you have made with the buyer of your ROCs. ROCs are often sold as part of a PPA, and energy suppliers can bid a percentage pass-through or fixed discount of the ROCs. For example, a percentage passthrough of 98% for the buyout price and 99% of the recycle price. For the 2024 to 2025 period a 3% difference in the percentage passthrough would correspond to around £2 per MWh for a ROC banding of 1. It is therefore important to ensure you get competitive ROC bids.
Log in to our platform to check your site’s PPA forecast, to see your site-specific daily forecast, including ROCs.
Don’t have a platform account, or would like to discuss your best option with one of our experts?
Contact us on:
Email - contact@renewable.exchange
Phone - 0117 405 7931
Sources:
