Renewables Obligation buy-out price for 2026-2027
Summary
Ofgem published the Renewables Obligation buy-out price of £69.34 per certificate for 2026-2027 (April 2026 to March 2027), along with mutualisation thresholds and ceilings for England/Wales and Scotland. The document also confirms a methodology change from RPI to CPI indexation for future annual updates, effective 1 April 2026.
What changed
Ofgem has published the final buy-out price of £69.34 per Renewables Obligation Certificate for the 2026-2027 obligation period. The mutualisation thresholds are £83,300,000 (England and Wales) and £8,300,000 (Scotland), with ceilings of £417,747,225.53 and £41,774,722.53 respectively. The document confirms the indexation methodology change from RPI to CPI (based on 3.4% CPI change for 2025), effective 1 April 2026. Northern Ireland is not covered by the mutualisation provisions.
Electricity suppliers under the RO scheme must present the required number of ROCs per MWh supplied or pay the buy-out price of £69.34 per non-presented certificate. If the buy-out fund falls short of the mutualisation threshold, costs are shared among remaining suppliers. Suppliers should verify their ROC presentation obligations and understand potential mutualisation exposure for the 2026-2027 obligation period.
What to do next
- Review ROC presentation obligations for the 2026-2027 obligation period (1 April 2026 to 31 March 2027)
- Calculate potential buy-out payment at £69.34 per non-presented ROC
- Monitor mutualisation threshold exposure and cost-sharing provisions
Source document (simplified)
Renewables Obligation: buy-out price and mutualisation threshold and ceilings 2026 to 2027
Publication type: Data Publication date:
31 March 2026
Scheme name: RO Print this page
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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.
Buy-out price and mutualisation threshold and ceilings 2026 to 2027
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 2026 to 2027
£69.34 per Renewables Obligation Certificate
Mutualisation threshold for 2026 to 2027
England and Wales: £83,300,000
Scotland: £8,300,000
Mutualisation ceiling for 2026 to 2027
England and Wales: £417,747,225.53
Scotland: £41,774,722.53
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 previously updated the buy-out price and mutualisation ceilings annually to reflect the average monthly percentage change in the Retail Prices Index (RPI) during the preceding calendar year. However, following DESNZ’s decision as announced on 28 January 2026 this will now be based on the monthly change in the Consumer Price Index (CPI) during the preceding calendar year, with the change taking effect from 1 April 2026.
Applying this change to the inflation figures based on a CPI change of 3.4% (Source: Office for National Statistics) for 2025 calendar year the buyout price for 2026/27 RO year 1 from Apr 2026 to 31 Mar 2027 would be £69.34.
On 11 February 2026, Ofgem reported on the above proposed changes to the buy-out price and mutualisation thresholds for 2026.
We update the mutualisation thresholds annually based on the value of the scheme.
Buy-out prices and obligation levels for 2010 to 2027
| 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 |
| 2026 to 2027 | £69.34 | 0.472 | 0.184 |
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