Renewables Obligation: Changes to the buy-out price and mutualisation thresholds for 2026

Government has recently consulted on changes to the way Renewables Obligation is indexed for inflation, proposing a shift from the Retail Price Index (RPI) to the Consumer Price Index (CPI). This change is intended to reduce overall scheme costs and be consistent with regulatory best practices. 

The proposed new changes will affect the buy-out price for the 1 April 2026 to 31 March 2027 Renewables Obligation year.

Using 2025 inflation figures the buy-out price for 2026 to 2027 would be:

• £69.81 using the RPI percentage of 4.1% for 2025
• £69.34 using the CPI percentage of 3.4% for 2025

Once government have reached a final decision and any necessary legislative changes are implemented, we will publish the Renewables Obligation buyout price and mutualisation levels by 1 April 2026. 

The buy-out price for 2025 to 2026 of £67.06 per Renewables Obligation Certificate still applies until 31 March 2026.