The Department for Energy Security and Net Zero announced today that 93 ground-based solar projects, totalling a combined capacity of 3,288 megawatts, have secured support. Of this, 884MW is contracted for delivery in 2026, 509MW in 2027, and 1,895MW in 2028.
Record-breaking capacity for solar
This latest auction surpasses the previous record set in 2020, when 66 solar projects totalling 2,209MW were awarded CfDs. For the first time, a solar farm with a capacity of over 50MW has secured a CfD, with EDF Renewables’ Longfield project in Hertfordshire receiving a contract for 299MW of its planned 420MW capacity.
The strike price for solar farms in this round stands at £50.07 per megawatt-hour, almost unchanged from last year’s AR5 price of £47/MWh, despite inflation. This remains significantly lower than conventional energy prices, with new combined-cycle gas plants forecast to cost £114/MWh by 2025.
Solar and wind leading the way
Gemma Grimes, Solar Energy UK’s director of policy and delivery, welcomed the results: “These welcome announcements demonstrate yet again that solar and wind power are the cheapest source of power available in the UK. It is hugely encouraging to see an unprecedented volume of solar generation capacity contracted, enough to put a meaningful dent into future electricity prices.”
With the UK government targeting 50GW of solar capacity by 2030, an average of 3.3GW of ground-mounted solar needs to be delivered annually. This year’s CfD auction results are a significant step towards meeting that goal, alongside further capacity expected from corporate power purchase agreements and rooftop installations.
Future solar ambitions
Gemma Grimes added: “The CfD system is currently working well for solar. We look forward to future allocation rounds and will work with the Government to deliver the capacity necessary to meet its renewable energy targets. Having greater visibility of future budgets for the years to come would help achieve this.”
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