Know your ROCs and REGOs

Renewable Energy Certificates explained

First up, an apology – we’re going to use a few acronyms. They come with the territory but we’ll explain each one.

There are two types of renewable certificates in the UK: ROCs and REGOs. You’ll get them when your installation is accredited with Ofgem through their Renewables and CHP Register. ROCs have a cash value to you and REGOs help suppliers tell their customers where their energy has come from.

Renewable Obligation Certificates (ROCs)

ROCs are a key part of the Renewables Obligation scheme and 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. Check out the Obligation Bands 

You can 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). We offer contracts lasting from one month to five years. Choose from three main pricing options to fit your appetite for risk and exposure to the variable recycling fund payment along with how you’d like to be paid: 

  1. a fixed price gives you budget certainty and improved cash flow
  2. a percentage share option (Buyout Price / Recycling Value) can be a good choice for generators looking to achieve a better return over the longer term and who are less focused on cash flow certainty
  3. the processing fee (per ROC) option is similarly a good choice for  generators looking to achieve a better return over the longer term. This is a two-stage ROC payment consisting of the Buyout price less a processing fee and the Buyout fund.

Register your generation asset with Ofgem and provide meter readings to receive ROCs digitally if your installation meets Ofgem’s requirements.

Renewable Energy Guarantees of Origin (REGOs)

REGOs show electricity has been generated from renewable sources. Electricity suppliers use REGOs to demonstrate to customers the renewable content of electricity they’ve supplied each year. 

  • You’ll receive one REGO per MWh of electricity you generate
  • You can’t sell REGOs. They have no cash value and are included with the electricity you sell

Register your generation asset with Ofgem and provide meter readings from your generation meter according to its guidance.

  • If you are building on a commercial scale (typically more than 1-2MWs), the Renewable Obligation (RO) scheme or Contracts for Difference (CFD) (starting in April 2015) scheme could offer the best rewards. You’ll need a Power Purchase Agreement (PPA) to sell through these schemes.
    Watch the film that explains PPAs

Projects between 50kW and 5MW typically can chose between either scheme.

Watch this webinar from 1:15 to 3:45 to see how this works