The UK has allocated a £310 million budget for non-offshore wind technologies under AR7a
This comprises £135 million specifically for solar PV, which SolarEnergy UK estimates can support over 4 GW capacity
Solar PV projects over 5 MW can bid under Pot 1, with an Administrative Strike Price of £75/MWh
For its Contracts for Difference (CfD) Allocation Round 7a (AR7a), the UK government has announced a total budget of £310 million. This is the maximum support available for winning renewable energy players and will apply to all non-offshore wind technologies, including solar PV.
The Department for Energy Security & Net Zero opened AR7 in August this year, placing offshore wind as the only eligible technology under AR7, and the remaining non-offshore wind technologies under AR7a (see UK Opens Bid Window For CfD Under Allocation Round 7).
For AR7a, the eligible technologies include solar PV projects of over 5 MW installed capacity under Pot 1, along with CHP, landfill gas, hydro, onshore wind, remote island wind, and sewage gas projects. Pot 2 has other technologies. For Pot 1, the budget available is £295 million, while Pot 2 gets the remaining £15 million.
Winners will secure 20-year offtake agreements, an increase over 15 years in the previous rounds.
SolarEnergy UK, the lobby association for solar PV in the country, has welcomed the budget. Of the total £310 million, £135 million is earmarked for solar generation, which could support over 4 GW of capacity. This is the same amount that’s projected to be delivered this year through ground-mounted and rooftop solar projects combined.
For solar PV, the Administrative Strike Price (ASP) is set at £75/MWh, making it the lowest strike price for any technology in the list. ASP is the maximum price the government will offer to the developers for each technology type. According to the association, the final solar strike prices may be even lower.
In AR6, solar PV secured 3.28 GW capacity for a strike price of £50.07/MWh against an ASP of £61/MWh, around 18% lower than the ceiling (see United Kingdom Selects Over 9.6 GW RE Capacity For Allocation Round 6).