Solar Energy UK
10 February 2026
Record generation capacity has been secured from new wave of planned solar farms, at a price significantly lower than the wholesale cost of electricity.
Driven by intense competition, the results of the seventh onshore auction round for Contracts for Difference (CfD) will drive down bills for us all over the coming years. They were published early this morning, including results for onshore wind power.[1] The offshore wind element of the round was revealed on 14 January.[2]
A record of 157 solar farms totalling 4,905 megawatts of capacity – 50% more than the last round – gained support. That represents approximately 20% of the UK’s current solar generation capacity, both on the ground and on rooftops, estimated by the industry to be around 24 gigawatts. The installations will be built over 2027 to 2029.
A total of 11 of them will be built in Scotland and 12 in Wales.
The price reached at auction was £65.23 per megawatt-hour, more than 10% cheaper than under CfD allocation round six, announced in September 2024.[3] That set the previous solar capacity record of 3,288MW.
The Department for Energy Security and Net Zero estimates that the price is a massive 56% lower than the levelised cost of power from a new combined-cycle gas turbine plant.
The results accord with Solar Energy UK’s expectations of £63-68/MWh and are 13% lower than the £75/MWh cap on bids imposed last year (the administrative strike price). The wholesale price averaged £80.66 per megawatt-hour last year.
Combined with solar farms backed by corporate power purchase agreements and those selling power to the grid directly as merchant plants, the capacity secured is broadly in line with the amount we need to meet the goal of reaching 54-57GW by 2030, as set in the Clean Power 2030 Action Plan.[4] The figure includes the 9-10GW of rooftop systems that the plan mentions, beyond its headline figure of reaching 45-47GW of utility-scale capacity.
Solar Energy UK estimates that the seventh round will contribute £370m to the economy, as gross value added.
A milestone result
“Today’s results are a milestone for the solar sector. They are proof positive that it provides the cheapest power available – and all while helping to cut reliance on what drove the energy price crisis in the first place: expensive and polluting natural gas. I congratulate the winners and look forward to their projects delivering cheap, green and secure power for us all,” said Chris Hewett, Chief Executive of Solar Energy UK.
“The round is also a victory for our precious wildlife. Solar farms are a huge asset for many rare and threatened species, shown time and again by academics, campaign groups, independent ecologists and our regular Solar Habitat reports alike,” he added.[5]
Aside from there being a healthy pipeline of consented projects ready for construction, low panel prices and economies of scale, the lower price was also driven by a change in the structure of the scheme. In previous rounds, CfDs extended for 15 years. They now last for 20 years, intended to further solidify renewables’ bankability and deliver lower auction prices, while maintaining rates of return for investors.
Prices are also now expressed in 2024 values rather than those for 2012.
Solar CfD Results since 2022:
| CfD round | Projects | Capacity (MW) | Strike price /MWh (2012 prices) | In 2024 prices, /MWh |
| 4 | 67 | 2209 | £45.99 | £64.09 |
| 5 | 56 | 1927 | £47 | £65.49 |
| 6 | 93 | 3288 | £50.07 | £72.92 |
| 7 | 157 | 4905 | n/a | £65.23 |
Explainer: How CfDs work
The key function of CfDs is to reduce the risk of volatile prices hitting consumers and damaging investor confidence. It thus lowers the cost of capital and in turn energy bills, while the clean generation it secures helps push expensive natural gas off the grid.
The system uses competitive bidding to keep down the cost of support for renewable energy, with operators being paid a fixed amount regardless of the prevailing price for wholesale power. When wholesale electricity prices are below the agreed strike price, operators receive top-up payments from consumers. When wholesale prices exceed the strike price, operators pay the difference back, reducing the ‘policy costs’ applied to bills.
[1] Contracts for Difference (CfD) Allocation Round 7a: results
[2] Contracts for Difference (CfD) Allocation Round 7: results
[3] Contracts for Difference (CfD) Allocation Round 6: results
[4] Solar industry backs commitment to clean power by 2030 – Solar Energy UK
[5] MPs back solar farms’ biodiversity benefits
– ENDS –
Editor’s notes
For more information or to request an interview, please contact:
Gareth Simkins, Senior Communications Adviser
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Gareth Simkins
Senior Communications Adviser
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