By Robin Whitlock | Renewable Energy Magazine | November 28, 2025
Solar Energy UK has welcomed the announcement by the UK Chancellor that the Treasury will be meeting the bulk of the costs of starting the UK’s successful transition away from a power system dependent on expensive natural gas, which will have a marked impact on household bills.
From April, the government will cover three quarters of the costs of the Renewables Obligation (RO), for domestic bills. This will continue for three years, at a cost of £2.3 billion per year.
The scheme was designed to encourage generation from wind, solar and other renewable sources, coming into effect in 2002 in Great Britain and three years later in Northern Ireland. It requires electricity suppliers to present a certain number of Renewables Obligation Certificates (ROCs) for each megawatt hour used by customers. This can be done either through generating their own renewable energy, purchasing certificates from other suppliers, or contributing to a buy-out fund.
