PVTIME – The UK government has announced the results of the seventh Contracts for Difference allocation round, with 210 projects securing support and a combined capacity of 14.7GW. A record 4.9GW of solar photovoltaic capacity was awarded across 157 projects. Solar’s clearing price was significantly lower than the costs of onshore wind and gas-fired generation, which reaffirms its competitiveness in the energy transition.
Of the winning solar projects, 72 totalling 1.87GW are set to connect to the grid between 2027 and 2028, while 85 projects with a capacity of over 3.03GW plan to begin operating between 2028 and 2029. Most of the solar capacity (4.25GW) will be based in England, with 331MW in Scotland and 326.8MW in Wales.
In addition to solar, AR7 awarded contracts to 12 offshore wind projects with 8.4GW of capacity, 28 onshore wind projects totalling 1.3GW, and four tidal power projects with 20.9MW.
This round set a strike price cap of £75 per MWh. Solar PV was awarded a clearing price of £65.23 per MWh, which is lower than the £72.24 per MWh awarded to new onshore wind projects. Both prices are less than half the cost of building and operating a new gas-fired power station, which stands at £147 per MWh.
Solar Energy UK attributes this reduction in price to falling module costs and economies of scale. Extending CfD contract terms from 15 to 20 years has improved project bankability, helping to lower bid prices while maintaining investor returns.
Neil McDermott, chief executive of the Low Carbon Contracts Company, which manages CfD contracts, states that the results demonstrate the scheme’s significant contribution to Great Britain’s electricity system, and notes that the projects will deliver large-scale renewable power, especially when combined with the record offshore wind capacity secured in AR7.
Solar Energy UK adds that, when combined with solar projects supported by corporate power purchase agreements and merchant projects, the secured capacity aligns with the pace required to meet the UK’s 2030 solar installation target of 54–57GW, which is consistent with the Clean Power 2030 Action Plan. This target includes 9–10GW of rooftop solar and 45–47GW of utility-scale solar.
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