UK opens seventh CfD renewables auction

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The UK CfD application window is now open, with longer contracts on offer than in previous allocation rounds.

The National Energy System Operator (NESO), which is responsible for the Great Britain electricity grid, informed project developers on August 7 that applications for the seventh CfD allocation round (AR7) are now being accepted.

Solar developers can expect some changes in AR7, including an increased contract term length for successful bidders. UK CfDs for solar were previously offered as 15-year contracts, but this has been extended to 20 years.

The target commissioning window (TCW) for solar projects has also been extended, giving developers more flexibility on contract start dates.

Previously, solar project developers had to include a start date within a three-month TCW in their allocation submission, overlapping with one of the delivery years on offer. This has been extended to 12 months in anticipation of larger capacity solar projects being developed in the future.

Results of the CfD allocation round are expected between late November 2025 and early February 2026. Analysts predict the outcome will significantly impact the UK government’s ability to hit its 2030 solar deployment target. Marc Hedin, head of UK and Ireland research at Aurora Energy Research, told pv magazine in January 2025 that the next two CfD allocation rounds would be critical.

“The key conclusion is that allocation round seven and allocation round eight will need to deliver quite a lot,” he said.

CfDs were awarded to 93 solar projects totaling 3.3 GW of capacity in the sixth allocation round, setting a new record for UK renewables auctions. The UK government is aiming for 45-47 GW installed solar capacity by 2030, with the latest official statistics recording 19 GW of deployed capacity at the end of June 2025.

 

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