Energy & Utilities Energy and utilities

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.

UK-wide
Guide summary

Apply for Contracts for Difference (CfD) support if you run a low-carbon electricity project. The application window is 7-27 August 2025. If accepted, you get a fixed electricity price for 20 years.

  • Apply between 7-27 August 2025
  • 20-year contract for onshore wind, offshore wind and solar
  • Strike price guaranteed for 20 years
  • Check planning and grid connection requirements
  • £295 million available for established technologies
  • £160 million minimum for onshore wind
  • Results expected December 2025 - February 2026
  • New projects in planning can apply
  • Extra support for UK supply chain investment
  • Sign contract with Low Carbon Contracts Company if successful
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UK-wide

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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

    Register on CfD Allocation Round portal before application window

  4. 4

    Submit application

    Submit application during August 2025 window

  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