Energy & Utilities Energy and utilities UK-wide

Contracts for Difference (CfD)

The main government support mechanism for new low-carbon electricity generation. CfDs provide long-term price stability for renewable generators through competitive allocation rounds.

Guide summary

Apply for a Contract for Difference (CfD) in Allocation Round 7 to get a guaranteed price for the electricity you generate from low-carbon sources. The application window was 7 to 27 August 2025. Successful projects receive a 20-year contract that pays you when wholesale electricity prices are low.

  • Apply during the annual allocation round window
  • AR7 application window was 7 to 27 August 2025
  • Check you meet eligibility for Pot 1 or Pot 2 technology
  • Have planning consent and grid connection agreement ready
  • Register on the CfD portal before the application window opens
  • AR7 results were announced on 14 January 2026
  • Successful projects sign a 20-year contract
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How CfDs work

CfDs provide generators with a guaranteed 'strike price' for their electricity. When wholesale prices are below the strike price, generators receive a top-up payment. When prices are above, they pay back the difference.

Allocation Round 7 (AR7)

Key eligibility requirements

  • Planning consent (or 12+ months since reaching relevant planning stage for offshore wind)
  • Grid connection agreement
  • Evidence of project deliverability
  1. 1

    Review Allocation Framework

    Review AR7 Allocation Framework and eligibility criteria

  2. 2

    Ensure milestones on track

    Ensure planning and grid connection milestones are on track

  3. 3

    Register on CfD portal

    Check the current allocation-round timetable and register on the CfD portal before its application window

  4. 4

    Review AR7 results

    AR7 closed in August 2025; results published in January and February 2026 awarded a record 14.7 GW across 201 projects

  5. 5

    Sign CfD contract

    If successful, sign CfD contract with Low Carbon Contracts Company

  6. 6

    Meet commissioning date

    Meet Target Commissioning Date to receive payments

CfD Allocation Round 7 (opens in a new tab)