Getting to grips with renewable energy certificates will help you decide which route to market is best
for you.
Or call us on 0845 525 0028(1).
There are two types of renewable energy certificate
Renewable Obligation Certificates (ROCs)
ROCs are useful to suppliers who are incentivised to support the growth of renewable generation.
The number of ROCs you receive for each MWh of electricity you produce depends on the technology (wind, solar PV, anaerobic digestion, etc.) of your generation asset and when it was built. This is called ROC banding and helps promote newer technologies which receive more support with multiple ROCs per MWh.
Renewable Energy Guarantees of Origin (REGOs)
REGOs show electricity has been generated from renewable sources. Electricity suppliers use REGOs to show customers the renewable content of electricity they’ve supplied each year. You’ll receive one REGO per MWh of electricity you generate and you sell REGOs in a bundle with the electricity you sell.
Register your generation asset with Ofgem and provide meter readings.
ROC pricing options
Fixed price
Improves your cash flow and gives you budget certainty.
Percentage share
Gives you a better long-term return, and less cash flow certainty.
Processing fee
A two stage ROC payment that gives you a better long-term return.
Bundle your ROCs with the power you are selling in one Power Purchase Agreement (PPA),
or sell the certificates separately in a stand-alone contract by entering into a ROC Trading Master Agreement (RTMA).
Not sure which certificates are right for your business?
Simply, fill out our quick form and one of our energy specialists will be in touch shortly to talk through ROCs and REGOs.
Or call us on 0845 525 0028(1).
Electricity Market Reform
Contracts for Difference (CFD) has now replaced the Renewable Obligation (RO) scheme.
How this affects low carbon generators
How does this affect low-carbon generators?
The RO will continue to operate until 2037 for those already registered, but from 2017 new installations can only join the CFD scheme.
The Capacity Market is a mechanism put in place by the Government to ensure electricity supply continues to meet demand as the number of renewable generation plants increases. It has become an alternative option for generators that can control when they generate and produce electricity when the system is under stress.
You can’t participate in the Capacity Market if you’re already registered in the FIT, RO or CFD schemes. Read about the latest Renewable Obligation updates and how they impact your business.
How do CFDs work to support renewable generators?
CFDs incentivise investment in new low-carbon electricity generation by reducing the risk and cost of investing.
They overcome the issue that electricity prices are hard to predict over the life of a low-carbon power plant. A CFD sets an agreed fixed price – called a strike price – for 15 years to reduce uncertainty about volatile wholesale prices and encourage long-term investment.
A strike price works like this: when the market rate for electricity falls below the strike price, generators are paid from a fund, run by the Low Carbon Contracts Company. When the rate exceeds the strike price, generators pay back into the fund.
Talk to us about ROCs and REGOs
Fill out our quick form and we’ll be in touch to help find the right type of certificate for your business.
Building on a commercial scale?
The Renewable Obligation (RO) scheme or Contracts for Difference (CFD) scheme could offer the best rewards if you build typically more than 1-2MWs. You’ll need a Power Purchase Agreement (PPA) to sell through these schemes.
Building on a small scale?
If you have an installation under 250kW, then Feed-in-tariffs are best for you. You’ll need to opt in receiving the FIT export payment, and your PPA would be a separate agreement.