Changing indexation, potential new support mechanisms and a market preparing for long‑term transition.
The Renewables Obligation (RO) is about to undergo significant reform. From April 2026 the buy‑out price will shift from the Retail Price Index (RPI) to the Consumer Price Index (CPI), lowering expected ROC values. In addition, later this year government is due to provide an update to its potential introduction of Fixed Price Certificates (FPCs) from 2027. Ahead of these further details, our latest research shows the changes proposed to date are already prompting a diverse range of responses, with concerns about revenue certainty, investor confidence, and timing forming consistent themes across the market.
Cornwall Insight’s insight paper, the first in a two-part series, brings together the upcoming reforms to the RO in more detail and views from market participants on the impact of these changes.
Inside:
- What CPI indexation means for ROC revenue
- Market views on the two proposed FPC models, ahead of an update due from government later this year
- How concerns vary by accreditation end date
- What reforms could mean for future investment decisions
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