What Is A Renewable Obligation Certificate
A ROC sounds like something quite hard! But what is a ROC? Well, it stands for Renewable Obligation Certificate. If that leaves you none the wiser, then hopefully the information below will help to explain just what this means in a little more detail.The Renewable Obligation Certificate is issued to a generator and applies to the electricity that they produce from renewable energy sources.
Each electricity supplier is set an individual target by the Government, and this includes the obligation to provide a minimum percentage of their electricity from renewable sources. If a supplier does not do this, then they must buy surplus ROCs from other organisations or pay a buy-out fee.
Therefore there is a market in ROCs being traded between suppliers, and this can actually help to keep the costs of electricity down for customers as those that focus on renewable generation can keep their costs down by trading their certificates. There is finally the option to remove surplus Renewable Obligation Certificates rather than to trade them, which forces other suppliers to focus more on development of new renewable energy products because it reduces the supply of them to be bought by other companies.
More Green Household Related Articles
Magnetism And Being GreenCavity Wall Insulation And Saving Energy
Heat Pumps And Making Your Own Energy
Where Does Green Energy Comes From?
Finance And Grants For Microgeneration