The UK has achieved a major win in clean energy with its latest Contracts for Difference (CfD) Allocation Round 7 (AR7). It awarded contracts for a record 4.9 GW of solar capacity from 157 projects. This beats the previous high of 3.3 GW in AR6, showing strong growth in solar power. The auction also approved 1.3 GW from 28 onshore wind projects and 20.9 MW from four tidal stream projects. Combined with January’s 8.4 GW offshore wind from 12 projects, AR7 totals 14.7 GW across 201 projects—enough to power 16 million homes. Solar cleared at a low £65.23/MWh (2024 prices), cheaper than onshore wind’s £72.24/MWh and half the cost of new gas plants.
Key highlights include the West Burton Solar Farm in England, the largest ever at 479 MW across sites on a former coal station. Most solar (4.25 GW) is in England, with 331 MW in Scotland and 327 MW in Wales; 72 projects (1.87 GW) target 2028, others 2029. This will unlock £5 billion ($6.82 billion) in private investment.
Solar Energy UK called it a “milestone,” crediting longer CfD terms for lower costs. It supports the UK’s “clean power by 2030” goal, doubling solar from 21.5 GW in late 2025 to 45 GW. Cheaper renewables cut bills and emissions, boosting energy security.
FAQs [Frequently Asked Questions]
1. What is the CfD AR7 auction?
CfD AR7 is the UK’s seventh round of Contracts for Difference auctions, securing low-carbon energy with fixed prices to attract investment in solar, wind, and tidal projects.
2. How much solar capacity was awarded?
A record 4.9 GW from 157 solar projects, with 1.87 GW due by 2028 and 3 GW by 2029, mostly in England.
3. What are the economic benefits?
It unlocks £5 billion in investments, powers 16 million homes when combined with wind, and offers solar at £65/MWh—far below fossil fuel costs.