The results, published on the 10th February, mark a record-breaking round for solar, with 4.9GW of new capacity securing contracts across 157 projects – 50% more capacity than the previous allocation round.
The strike price cleared at £65.23/MWh (2024 prices), below the average wholesale electricity price of £80.66/MWh last year, reinforcing solar’s position as one of the most cost-competitive forms of new power generation in the UK. By locking in a fixed price for power generated, the CfD mechanism provides long-term price stability for UK-generated renewable electricity supplied to the national grid.
The successful qualification of Enviromena’s Rhigos project in Rhondda Cynon Taf and Parley Court Farm in Dorset reflects the growing maturity and competitiveness of the UK solar market, as well as the depth of the company’s development pipeline.
AR7 is expected to play a significant role in reducing consumer energy bills over the coming years. The Department for Energy Security and Net Zero estimates that the clearing price is 56% lower than the levelised cost of electricity from a new gas-fired power station, while the average wholesale electricity price last year was £80.66/MWh.
Both projects are aligned with the Government’s ambition to reach 57GW of solar capacity by 2030, as set out in the Clean Power 2030 Action Plan.
Chris Marsh, Chief Executive Officer at Enviromena, said: “Allocation Round 7 reaffirms solar’s pivotal role in delivering the UK’s clean energy ambitions. Against the backdrop of recent ROC reforms, the volume of capacity awarded this year sends a clear and reassuring signal that the policy framework remains stable and attractive for investment.
“We’re delighted to see Rhigos and Parley Court secure contracts in this round, further endorsing the strength and quality of our development pipeline.”
Across the sector, Solar Energy UK estimates that Allocation Round 7 will contribute £370 million in gross value added to the UK economy, underlining the role of large-scale solar in delivering economic growth alongside decarbonisation.
The results also reflect changes to the CfD framework introduced in this round, including an extension of contract length from 15 to 20 years, designed to improve bankability and drive lower auction prices while maintaining investor confidence.
The success of AR7 further cements solar energy as a central pillar of the UK’s clean power transition, delivering affordable, secure and low-carbon electricity at scale.
Enviromena is a portfolio company of Arjun Infrastructure Partners, the European specialist mid-market infrastructure manager.
