By Paul Homewood

 John Cullen suggested a go-to resource for up-to-date data on renewable energy costs and subsidies.

So I have knocked this together for starters, and I will try and update it quarterly.

It is tagged under “environmental levies”

Let’s start with a table you are probably familiar with – the OBR’s projections of Environmental Levies. The three direct subsidy mechanisms are highlighted. On top of these, of course, are indirect subsidies, such as the cost of providing standby (Capacity Market) and grid balancing.

Renewables Obligation

Starting with Renewables Obligation, DESNZ have latest data up to Dec 2024, at which time the cumulative cost of subsidy had reached £65.8 billion since 2010.

The cost during 2024 totalled £7.1 billion on output of 76.1 TWh, about a quarter of UK supply. This works out at an average subsidy of £93/MWh for renewable generators, which is added to the market price they receive.

Contracts for Difference

Cumulative subsidy payments for CfDs have now risen to £10.0 billion since the scheme began in 2016. In the 12 months to March 2025, the cost was £2.2 billion.

Feed in Tariffs

OFGEM annual data is updated every November. Their latest costs are for 2023/24 and show a scheme cost of £1.8 billion for the year, and a total cost of £16.3 billion since 2010.

The total subsidy for 2023/24, which is most recent period with full data, came to £10.6 billion. Costs already identified now exceeded £90 billion since the various schemes began.

Including Capacity Market and grid balancing costs, we are looking at about £16 billion for this year.

Electricity supply totalled 273 TWh last year, so that £16 billion equates to £58.60/MWh, or 5.8 pence/kWh.

Given that the current energy price cap is set at 25.74p/kWh (pre-VAT), subsidies to renewables make up nearly a quarter of the price.

SOURCES & METHODOLOGY

1) ROCs :

The number of ROCs issued is listed here:

https://www.gov.uk/government/statistics/energy-trends-section-6-renewables

Buy out and recycle values are set by OFGEM here:

https://www.ofgem.gov.uk/publications/renewables-obligation-ro-buy-out-price-mutualisation-threshold-and-mutualisation-ceilings-2024-2025

https://www.ofgem.gov.uk/publications/renewables-obligation-certificates-presented-and-redistribution-buy-out-fund-2023-24

2) CfDs

All data from the LCCC:

https://dp.lowcarboncontracts.uk/dataset/actual-cfd-generation-and-avoided-ghg-emissions

3) FITs

https://www.ofgem.gov.uk/publications-library-feed-tariff-fit-scheme