• Q&A: New UK onshore wind and solar is ‘50% cheaper’ than new gas Molly Lempriere 02.11.26Molly Lempriere 11.02.2026 | 1:55pmThe UK government has secured a record 7.4 gigawatts (GW) of solar, onshore wind and tidal power in its latest auction for new renewable capacity. • It is the second and final part of the seventh auction round for “contracts for difference” (CfDs), known as AR7a. • In the first part, held in January 2026, the government agreed contracts for a record 8.4GW of new offshore wind capacity. • This makes AR7 the UK’s single-largest auction round overall, with its 14.7GW of new renewable capacity being 50% larger than the previous record set by AR6 in 2024. • In AR7a, 157 solar projects secured contracts to supply electricity for £65 per megawatt hour (MWh) and 28 onshore wind projects were contracted at £72/MWh. • This means they will help cut consumer bills, according to multiple analysts.

Article Summaries:

  • The UK government’s second phase of the seventh Contracts for Difference (CfD) auction, AR7a, secured a record 7.4 GW of new renewable capacity-4.9 GW of solar, 1.3 GW of onshore wind and 21 MW of tidal power-making AR7 the largest single‑round auction ever. Solar projects received a strike price of £65 /MWh and wind projects £72 /MWh, roughly 50 % cheaper than the cost of new gas plants, according to Energy Secretary Ed Miliband. The contracts are projected to cut UK gas demand by about 95 TWh per year, potentially reducing LNG imports by three‑quarters and lowering consumer bills.

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