What is the Renewables Obligation on a business bill?

The Renewables Obligation supports eligible renewable electricity generation through obligations on electricity suppliers. Ofgem says it is closed to new applications but remains active for existing participants until March 2037 [S1]. Suppliers' scheme costs reach customers through electricity bills [S2]. Check how your business contract includes or separately recovers those costs. Checked October 2026.

Last checked 19 October 2026

What is the Renewables Obligation?

The Renewables Obligation, or RO, is a renewable-electricity support scheme funded through obligations on licensed electricity suppliers [S2]. Why it matters for your site: a bill line labelled RO concerns policy costs rather than another quantity of electricity delivered to your building.

Accredited generators receive Renewables Obligation Certificates, or ROCs, for eligible output. Suppliers obtain certificates or make buy-out payments to meet their obligation [S2]. Ofgem administers the scheme [S3]. For the other invoice components, use your business electricity bill explained.

Why can your bill include a scheme closed to new applications?

Closure to new applicants does not end support for existing participants. Ofgem says the RO remains active for current participants until March 2037 [S1]. A new solar proposal should therefore not count on joining this closed scheme.

Government explains that suppliers pass their RO costs to consumers through electricity bills [S2]. Whether you see a separate line is a contract-reading question. Ask your supplier to identify where the cost sits, which period it covers and which clause permits an adjustment.

DESNZ continues to publish annual obligation levels, expressed as certificates per megawatt-hour supplied [S4]. That supplier calculation is not itself a quoted retail rate for your premises.

What should you check on an RO charge?

Request the billed consumption, applied rate, covered dates and reconciliation method. Check whether the energy price already includes the item before adding it to an installation model. Read business electricity contracts alongside electricity price data.

If your site already owns an accredited generator, keep its certificate statements separate from your import bill. Ask your accountant how to record those distinct transactions, and your solicitor about disputed contract clauses.

Next step

Explore cut energy costs, then get matched with an installer that covers your area.

Piggy Pineapple Ltd operates this referral service. We refer enquiries to installer partners and may be paid a fee. Our owner holds shares in at least one partner. Before sharing details, we name the proposed partner and disclose any shareholding in it.