The UK government has secured a record 4.9 GW of solar capacity in its latest contracts for difference CfD) auction round, at a clearing price of GBP 65 ($88) per MWh.
AR7 awarded contracts to 1.87 GW of capacity across 72 projects due to come online by 2028, and 3 GW of capacity to 85 projects due by 2029. Successful developers will now be awarded a 20-year flat rate contract with the state-owned Low Carbon Contracts Company (LCCC).
CfDs have been a key part of the UK government’s renewables strategy since the first auction opened in October 2014. There was a step change in solar capacity succeeding at auction in the sixth allocation round, when nearly 3.3 GW was allocated across 90 projects – a record at the time.
The increase in solar capacity assigned through UK CfDs comes as the government pursues ambitious deployment targets, aiming to more than double PV capacity from 21.5 GW recorded by the Department for Energy Security and Net Zero (DESNZ) in December 2025 to at least 45 GW by 2030.
Ramping up solar capacity is expected to come from a significant increase in deployed utility-scale plants as well as a planned rapid rollout of new rooftop installations. West Burton Solar secured the most capacity for a solar project in AR7 with contracts for a combined 479 MW across West Burton Site 1 (90 MW), Site 2 (182 MW) and Site 2 (207 MW). The 373 MW Cleve Hill Solar Park commissioned in 2025 is the largest solar plant with a CfD currently operating in the United Kingdom.
The strike price secured in AR7 is roughly in line with industry expectations, with capacity exceeding the forecast made by Solar Energy UK. Briefing ahead of the auction results, the industry association said 3.5 GW to 4.5 GW under CfD would be “broadly in line” with what is needed to achieve 2030 solar deployment targets.
Chris Hewett, chief executive of Solar Energy UK, described the auction result as a “milestone” for the solar sector.
Solar Energy UK also argued the lower strike price in AR7, down from the GBP 72/MWh in AR6, was a result of recent changes to the length of CfD contract. This has lowered the cost of capital for developers, according to the association.
The UK government announced in summer 2025 it would extend the CfD contract terms for AR7 from 15- to 20-years. Payments will be tied to inflation and the auction clearing price was per MWh is set out in 2024 real terms.
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