Key Takeaways
- The total number of UK PV plants backed by contracts for difference (CfD) is expected to more than double in 2026 if developers meet deadlines.
- Solar holds the greatest number of contracts of any generating technology, with 199 contracts awarded since the UK CfD scheme began.
- The largest UK PV plant to date, Cleve Hill, was commissioned in 2025 and has a CfD contract.
- The UK government needs to secure significant capacity in the seventh CfD allocation round to meet 2030 deployment targets.
- The investment landscape for UK solar with a CfD is diverse, with 40% of contracted projects owned by private companies, 38% by infrastructure and investment funds, and 22% by developers.
Introduction to Contracts for Difference
The UK’s contracts for difference (CfD) scheme has been instrumental in driving the growth of renewable energy in the country. The scheme provides a stable revenue stream for developers, allowing them to invest in large-scale projects with confidence. According to the latest investment report from the Low Carbon Contracts Company (LCCC), solar projects have secured the most contracts in each of the last three UK CfD allocation rounds by number of plants. This is a significant development, as it indicates a shift towards solar energy as a preferred source of renewable energy in the UK.
Current Status of UK Solar Plants
As of November 2025, there are 19 deployed UK solar plants supported by a CfD, with 17 of these coming online in 2025. The largest UK PV plant to date, Cleve Hill, was commissioned in 2025 and has a CfD contract. The plant has a capacity of 373 MW, making it a significant addition to the UK’s renewable energy landscape. The public facing CfD register shows that there are 26 not yet commissioned solar plants with longstop dates that fall in 2026, representing a combined total contracted capacity of roughly 790 MW. This means that the total number of UK PV plants backed by CfD could more than double in 2026 if developers meet deadlines.
Solar Projects Securing Contracts
Solar projects have secured the most contracts in each of the last three UK CfD allocation rounds by number of plants. Although wind continues to dominate in capacity terms, solar is gaining ground. The latest investment report from the LCCC records a total of 199 contracts have been awarded to solar projects since the UK CfD scheme began, ahead of on- and off-shore wind’s combined total of 123. Almost all solar CfDs have been secured in the fourth, fifth and sixth allocation rounds. The seventh CfD allocation round is currently underway, with the UK government needing to secure significant capacity in order to meet 2030 deployment targets.
Investment Landscape for UK Solar
The investment landscape for UK solar with a CfD remains diverse, according to LCCC’s report. The report found that 40% of contracted projects are owned by private companies, 38% by infrastructure and investment funds, and 22% by developers. No projects sampled by LCCC had any state ownership. This diversity of ownership is a positive sign for the UK solar industry, as it indicates that a range of investors are confident in the sector’s potential. The fact that no projects had state ownership also suggests that the UK solar industry is able to attract private investment, which is essential for its long-term sustainability.
Conclusion and Future Outlook
In conclusion, the UK’s CfD scheme has been successful in driving the growth of renewable energy, particularly solar. The fact that solar projects have secured the most contracts in each of the last three UK CfD allocation rounds is a significant development, and the expected doubling of UK PV plants backed by CfD in 2026 is a positive sign for the industry. However, the UK government needs to secure significant capacity in the seventh CfD allocation round to meet 2030 deployment targets. The diverse investment landscape for UK solar with a CfD is also a positive sign, as it indicates that a range of investors are confident in the sector’s potential. As the UK continues to transition to a low-carbon economy, the role of solar energy is likely to become increasingly important, and the CfD scheme will play a crucial role in supporting this growth.
