Renewables Obligation: buy-out price and mutualisation threshold and ceilings 2025 to 2026
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The Renewables Obligation (RO) scheme encourages energy companies to use renewable energy sources. Electricity suppliers must present a specified number of Renewables Obligation Certificates (ROCs) per megawatt hour (MWh) of electricity supplied during each obligation period.
The buy-out price is the amount suppliers must pay for each ROC they do not present. Mutualisation is triggered when there’s a shortfall in the buy-out fund. Ofgem divides the shortfall amongst the remaining suppliers to cover the cost.
Buy-out price for 2025 to 2026
- £67.06 per ROC
Mutualisation threshold for 2025 to 2026
- England and Wales: £82.200,000
- Scotland: £8,200,000
Mutualisation ceiling for 2025 to 2026
- England and Wales: £404,010,856.41
- Scotland: £40,401,085.62
Mutualisation does not apply in Northern Ireland.
Definition and shortfall amount
You can find the definition and shortfall amount per obligation period for England and Wales in Article 72 (3) in the Renewables Obligation Order 2015 as amended by the Renewables Obligation (Amendment) Order 2021.
You can find the definition and shortfall amount per obligation period for Scotland in Article 48 (3) and Schedule 3 in The Renewables Obligation (Scotland) Order 2009 as amended by The Renewables Obligation (Scotland) Amendment Order 2023.
Annual updates
We update the buy-out price and mutualisation ceilings annually to reflect the average monthly percentage change in the Retail Prices Index (RPI) during the previous calendar year. The average RPI percentage change during 2024 was 3.6% (source: Office for National Statistics).
We update the mutualisation thresholds annually based on the value of the scheme.
Buy-out prices and obligation levels for 2010 to 2026
Obligation period
(1 April to 31 March)
Buy-out price
England, Wales and Scotland
obligation levels (ROCs/MWh)
Northern Ireland
obligation levels (ROCs/MWh)
2010 to 2011
£36.99
0.111
0.0427
2011 to 2012
£38.69
0.124
0.055
2012 to 2013
£40.71
0.158
0.081
2013 to 2014
£42.02
0.206
0.097
2014 to 2015
£43.30
0.244
0.107
2015 to 2016
£44.33
0.290
0.119
2016 to 2017
£44.77
0.348
0.142
2017 to 2018
£45.58
0.409
0.167
2018 to 2019
£47.22
0.468
0.185
2019 to 2020
£48.78
0.484
0.190
2020 to 2021
£50.05
0.471
0.185
2021 to 2022
£50.80
0.492
0.194
2022 to 2023
£52.88
0.491
0.193
2023 to 2024
£59.01
0.469
0.184
2024 to 2025
£64.73
0.491
0.192
2025 to 2026
£67.06
0.493
0.193
Mutualisation thresholds and ceilings for 2022 to 2026
Obligation period
(1 April to 31 March)
England and Wales
mutualisation threshold
England and Wales
mutualisation ceiling
Scotland
mutualisation threshold
Scotland
mutualisation ceiling
2022 to 2023
£65,800,000
£318,538,886.70
£1,540,000
£31,853,888.66
2023 to 2024
£72,200,000
£355,489,397.56
£7,200,000
£35,548,939.74
2024 to 2025
£79,000,000
£389,971,869.12
£7,900,000
£38,997,186.89
2025 to 2026
£82.200,000
£404,010,856.41
£8,200,000
£40,401,085.62