Unchanged from AR7, the administrative strike price (ASP) for solar PV plants is £75/MWh.
July 8, 2026
Administrative strike prices for renewable energy projects supported by the UK government’s Contracts for Difference (CfD) scheme have been confirmed for the upcoming Allocation Round 8 (AR8).
Unchanged from AR7, the administrative strike price (ASP) for solar PV plants is £75/MWh, given in 2024-benchmarked prices. It is the cheapest technology, behind onshore wind at £92/MWh, offshore wind at £113/MWh and floating offshore wind at £271/MWh.
ASPs are the maximum bid that generators can put into the auction, and historically, the final strike prices successful at auction are 15-20% lower than ASPs.
As previously confirmed, AR8 is running with slightly adjusted terms compared with other years. This sees only projects with a Gate 2 connection offer eligible to bid, and contract lengths of 20 years, up from 15 in all rounds before AR7.
Newly for this allocation round, established technologies are split into individual pots, as opposed to competing within one, and strike prices are set by technology so bids must specify what category their projects belong to.
Related:Developers can ‘only expect things to change’ for NSIPs amid political unheaval
Further, the government will have visibility over anonymous bids for onshore and offshore wind and solar PV, with a decision to apply this to floating and deep water offshore wind projects having been made since the government’s last CfD update.
According to the Department for Energy Security and Net Zero (DESNZ), the change reflects revised internal pipeline assumptions and is intended to improve the government's ability to shape auction outcomes and assess value for money. The strike price is the amount that renewable generators will be paid per unit, regardless of market energy prices, operating effectively as a subsidy received when the wholesale electricity price is low, but pay back consumers when the electricity price is high (ECIU, 2025). This certainty reduces risk and makes projects more attractive for investment.
The importance of the scheme for developers was emphasised on a panel at last week's Clean Power 2030 Summit, hosted by our publisher Solar Media.
Payments to generators are made through costs levied on energy bills, however by introducing more renewable generation to the grid and driving out gas power, the scheme reduces energy bills overall. According to DESNZ, during the gas crisis the CfD scheme reduced annual consumer electricity bills by £18.
Industry bodies were keen to emphasise the cost reductions that the renewable energy projects supported by the scheme can offer for consumers. Kisha Couchman, deputy director of policy (investment) at Energy UK said: “The long-running Contracts for Difference (CfD) scheme has consistently shown itself to be the most effective means of securing investment in clean energy at the lowest cost for customers. It offers the long-term certainty and stability necessary to unlock billions of pounds of private investment and ensures households and businesses are shielded from both excessive costs and excessive profits.
Related:More flexibility for hybrid projects in AR8 would be welcomed
“Despite an increase in construction costs for all infrastructure projects, a strong AR8 will help drive down energy bills for customers, as well as provide confidence for developers, investors and supply chains to invest, innovate and support thousands of good jobs across the UK,” she added.
Jess Ralston, energy analyst at the Energy and Climate Intelligence Unit (ECIU), said: "Every solar panel or wind turbine we install means we're less reliant on gas which will increasingly come from the likes of Trump as the North Sea continues its inevitable decline with or without new licenses."
Bidding for AR8 opens on 20 July and closes on 7 August. Projects have been granted an extra delivery year for this round, so it includes 2028/29, 2029/30, and 2030/31 as delivery years for solar and onshore wind.
Related:‘Cripplingly high’ UK electricity price is main barrier to industrial electrification
A recent article used Solar Media Market Research data to identify key projects that could bid into AR8, including the Gate Burton solar plant and the East Yorkshire solar plant, both nationally significant infrastructure projects (NSIPs).
Per the provisional timeline, AR8 results could be announced as early as 27 November, on the fastest timeline, and at the latest are due by 17 February.
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Molly Green
Section Editor, Informa
Molly joined the team in 2024 and has led coverage on the UK sites. Now shifting to a more global view, Molly is interested in how legislation shapes market dynamics, covering the intersection of policy design, investment patterns, and energy transition pathways.
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