Renewables Obligation (RO) scheme: indexation changes

The UK government is proposing changing the inflation indexation calculation for the Renewables Obligation (RO) and Feed-in Tariffs (FiT) schemes, from the Retail Price Index (RPI) to the Consumer Price Index (CPI):

• for the Renewables Obligation (RO) scheme, the inflation indexation calculation for the buy-out price would change from RPI to CPI
• for the Feed-in Tariffs (FiT) scheme, the annual tariff adjustment calculation would change from RPI to CPI

The indexation change would come into effect in April 2026 and would affect all UK generators on the RO and FiT schemes.

Changes to inflation indexation would lower the annual subsidy uplifts for generators and reduce the cost of these schemes for UK consumers.