Close Menu
  • News
  • Industry
  • Solar Panels
  • Commercial
  • Residential
  • Finance
  • Technology
  • Carbon Credit
  • More
    • Policy
    • Energy Storage
    • Utility
    • Cummunity
What's Hot

Sol Systems adds to project portfolio with Texas acquisition | Projects Weekly

August 31, 2026

Climate-Linked Supply Chain Risk Is Already In Your P&L

August 26, 2026

Drake Plastics gets new carport project near Houston | Projects Weekly

August 17, 2026
Facebook X (Twitter) Instagram
Facebook X (Twitter) Instagram
Solar Energy News
Sunday, September 6
  • News
  • Industry
  • Solar Panels
  • Commercial
  • Residential
  • Finance
  • Technology
  • Carbon Credit
  • More
    • Policy
    • Energy Storage
    • Utility
    • Cummunity
Solar Energy News
Home - Commercial & Industrial - The solar industry expects a lower strike price at the renewable energy auction
Commercial & Industrial

The solar industry expects a lower strike price at the renewable energy auction

solarenergyBy solarenergyFebruary 6, 2026No Comments3 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Share
Facebook Twitter LinkedIn Pinterest Email

The trade body for the UK solar industry, Solar Energy UK (SEUK), expects solar strike prices in the upcoming Contracts for Difference (CfD) allocation round to be £63-68 per megawatt hour.

The results of allocation round 7a (AR7a) will soon be published by the cabinet. According to indicative timelines issued by the Low Carbon Contracts Company (LCCC), the operator of the CfD programme, results are expected by February 9, although the timing has been pushed back slightly.

Solar Energy UK said the results are “excitedly awaited”. According to her, from several announced changes to the way AR7 works compared to previous yearsthe “most critical” change is a switch to contracts with a term of twenty years, instead of fifteen.

Taking into account a “healthy” pipeline for solar projects and the allocated budget of £310 million (this is for all non-offshore wind technologies), SEUK predicts a discount of 9-16% on last year’s administrative strike price of £72.92, which is the limit for government-mandated bids.

Related:Britain’s grid reform will reshape solar and storage financing, experts say

Using 2024 benchmark prices, the solar strike price was £64.09/MWh in AR4, £65.49/MWh in AR5, and then, of course, £72.92/MWh in AR6, which has awarded contracts for 3.3 GW of solar PV.

SEUK estimates that 6 GW of capacity is eligible to bid for a CfD, but with some developers opting for alternative financial arrangements such as power purchase agreements (PPAs), AR7a will supply between 3.5 and 4.5 GW of solar power plants between 2028 and 2031.

It said this is broadly in line with what is needed to meet the overarching solar target set out in the Clean Power 2030 Action Plan.

See also  Further NSIP reforms to acceleration process, reduce costs

Figures from Solar Media Market Research, set out in a recent Solar Power Portal article by analyst Josh Cornesshow that 3.5 GWp of ground-mounted solar was added in 2025, taking the UK’s total operational capacity past 23 GWp.

CfD strike price to reduce consumer costs

In terms of the number of projects that will win, there are two possible outcomes: Looking at historical rounds, the average capacity of the awarded sites was 35 MW, suggesting that 100 to 130 projects would receive CfDs this year.

However, the increasing scale of solar PV installations in Britain, as higher numbers enter the planning system as Nationally Significant Infrastructure Projects (NSIPs) with capacities above 50MW, means that a smaller number of individual projects could win.

The CfD scheme aims to reduce the risk of volatile energy prices being reflected in consumer bills. When wholesale electricity prices are below the agreed strike price, operators receive additional payments that are reimbursed through invoices. When wholesale prices exceed the strike price, operators refund the difference, reducing the ‘policy fees’ applied to accounts.

Related:Government and Green Finance Institute launch the Green Home Finance Strategic Partnership

In 2025, wholesale costs averaged £80.66. That suggests the lower strike price will save consumers ‘millions’, SEUK estimates.

“We have been emphasizing for years that solar farms are the cheapest source of energy. The upcoming auction results should immediately reduce consumer bills, delivering more clean, green, safe, homegrown energy, free from geopolitical turbulence,” said Chris Hewett, CEO of SEUK.

Unlike previous years, the CfD auction for offshore wind energy was conducted separately from that for onshore technologies.

See also  EU uses the State Aid Framework for Cleantech Industry - PV Magazine International

Offshore wind energy, the results of which were announced on January 14, delivered 8.4 GW, making it the largest offshore wind auction in Europe to date. Strong competition led to competitive average prices of £91.20/MWh in England and Wales and £89.49/MWh in Scotland.



Source link

auction Energy expects industry price renewable solar strike
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
solarenergy
  • Website

Related Posts

Türkiye will add 2.1 GW of solar energy in the first half of the year

July 30, 2026

The Trinity Energy project takes the Florida Costco distribution center off-grid

July 29, 2026

Taiwan introduces new solar regulations for large buildings

July 29, 2026
Leave A Reply Cancel Reply

Don't Miss
News

Groundbreaking new material brings an affordable, sustainable future within reach

By solarenergyDecember 22, 20240

Groundbreaking new material brings an affordable, sustainable future within reach While lithium-ion batteries have been…

EIA to cancel the shipping report of US Solar Module after assessment

September 8, 2025

The Governor of New York launches the plan for accelerated implementation of renewable energy

September 27, 2025

India’s MSEDCL Contributions 2 GW/4 GWH to grid-built battery storage-PV Magazine International

July 29, 2025
Stay In Touch
  • Facebook
  • Twitter
  • Pinterest
  • Instagram
  • YouTube
  • Vimeo
Our Picks

Sol Systems adds to project portfolio with Texas acquisition | Projects Weekly

August 31, 2026

Climate-Linked Supply Chain Risk Is Already In Your P&L

August 26, 2026

Drake Plastics gets new carport project near Houston | Projects Weekly

August 17, 2026

What Counts For Scope 3 Targets

August 12, 2026
Our Picks

Sol Systems adds to project portfolio with Texas acquisition | Projects Weekly

August 31, 2026

Climate-Linked Supply Chain Risk Is Already In Your P&L

August 26, 2026

Drake Plastics gets new carport project near Houston | Projects Weekly

August 17, 2026
About
About

Stay updated with the latest in solar energy. Discover innovations, trends, policies, and market insights driving the future of sustainable power worldwide.

Subscribe to Updates

Get the latest creative news and updates about Solar industry directly in your inbox!

Facebook X (Twitter) Instagram Pinterest
  • Contact
  • Privacy Policy
  • Terms & Conditions
© 2026 Tsolarenergynews.co - All rights reserved.

Type above and press Enter to search. Press Esc to cancel.