Around this time of year, many of our microgeneration customers will have received their annual ROC payment. As part of this process, they will have received an email invoice, containing a full payment breakdown, detailing how the figure was calculated.
These invoices can be confusing, with a lot of numbers and abbreviations, so to help you understand your payment we have put together some key terms to note:
Generating station details
This is the name of you PV installation and how OFGEM refers to your system. They will release ROCs for a ‘generating station’ rather than a client’s name.
Invoice date: The date on which your invoice was generated and sent.
Invoice reference: How we will refer to your invoice in any correspondence and in any future cases where we must refer to a previous payment.
ARET (Action Renewables Energy Trading) contact and phone: Contact information for the Microgeneration team at Action Renewables.
Account name: Your Action Renewables account name.
For the year given, e.g. 18/19, your ROC payment is for generation between 1st April and 31st March.
Eligible generation: This is the volume of electricity generated by your PV station in this given time period. Usually this will correlate with your annual meter submissions, made to us each year on 31st March. For example, if your reading on 31/03/2017 was 4000 kWh and your reading on 31/03/2018 was 7500 kWh, your eligible generation would be 3500 kWh. If you did not submit your reading to us on 31st March, your reading will be pro-rated back to this date.
End reading date: This will be the 31st March, which is the end of the ROC generation year. This ROC year is set and cannot be changed, so any ROC payment made will be for generation ending on 31st March.
Unit value: The value of each kWh unit produced. This is derived from the ROC price that Action Renewables attain when trading your ROCs to electricity suppliers.
Net total: The total value, multiplying the number of eligible units by the unit price.
VAT: The introduction of the domestic reverse charge for VAT on ROCs means that from now on, all ROC invoices you receive from Action Renewables will not include VAT. New HMRC VAT rules came into operation on 14th June 2019 which mean that the buying and selling of ROCs is now subject to domestic reverse charge. A domestic reverse charge means the UK customer receiving supplies of ROCs must account for the VAT due on these supplies on their VAT return rather than the UK supplier. If you are not VAT registered these changes do not apply.
Total value: This is the total payment that Action Renewables make to you, for your ROCs, and it will be paid directly into your bank account.
The ROC invoice provides a comprehensive breakdown of how your payment is calculated and how your generated units are converted to monetary value. We encourage you to analyse this, as it will give you a greater understanding of how the ROC scheme works and explains how you can get the most from your PV system.
For any queries, you can get in touch with our microgeneration team on 028 9072 7760 or reach them via email at SSPV@actionrenewables.co.uk