What is a Contract for Difference?
A Contract for Difference (CfD) is the UK Government’s main mechanism for supporting investment in new low-carbon electricity generation.
CfDs give renewable energy generators greater certainty over the price they receive for the electricity they produce. Each successful project is awarded a ‘strike price’. When market prices fall below it, generators receive a top-up payment; when prices rise above it, they pay the difference back.
This two-way mechanism reduces exposure to fluctuations in wholesale electricity prices and provides greater long-term certainty for renewable energy projects.
For British Solar Renewables, that stability allows us to focus on what matters most: delivering clean, reliable energy that powers homes, businesses and communities across the UK.
British Solar Renewables participates in the CfD process where it is appropriate for our projects, taking into account the characteristics and commercial case for each project.
Our role in the CfD scheme
British Solar Renewables has been developing, building and operating renewable energy projects in the UK for over 15 years. As an Independent Power Producer (IPP), we take a long-term approach to the projects in our portfolio, generating renewable electricity and creating lasting value from the assets we develop.
CfDs form an important part of our broader commercial approach, providing long-term revenue certainty for projects within our portfolio. Alongside CfD-backed projects, we also secure long-term Corporate Power Purchase Agreements (PPAs), enabling businesses to purchase renewable electricity directly from our portfolio.
A diverse approach to market is central to how we operate as an IPP. Combining CfDs and PPAs helps us build a resilient portfolio, respond to different market opportunities and provide routes for both investors and businesses to participate in the UK’s transition to renewable energy.
Technologies we deliver under CfDs
Our integrated model covers the full lifecycle of renewable energy generation, from development through construction and operation.
Through the CfD scheme, we continue to deliver large-scale projects across:
- Solar PV: Utility-scale solar farms providing clean, affordable power to the grid.
- Hybrid and co-located sites: Pairing solar with battery energy storage for stability and flexibility.
Each CfD-backed project we deliver is designed to achieve the highest environmental standards, supporting biodiversity, powering communities, and long-term national energy resilience.
Why CfDs matter — and what they mean for you
For investors
CfDs create stable, long-term returns and reduce exposure to volatile energy markets. For our investment partners, CfDs represent:
- Predictable revenue and reduced risk exposure
- Long-term renewable portfolio diversification
- Alignment with government-backed sustainability frameworks
For businesses
Businesses don’t buy electricity through CfDs, but they can benefit from what CfDs help deliver: more renewable energy generation in the UK. This growing supply of clean power creates opportunities for businesses to secure renewable electricity through routes such as PPAs, supporting long-term cost certainty, energy security and net zero goals.
Partnering with British Solar Renewables can help businesses:
- Secure renewable electricity through long-term PPAs
- Make progress towards ESG and net zero targets
- Support the continued growth of renewable energy in the UK
Providing certainty for renewable energy
Explore our CfD-backed projects
Our CfD portfolio is helping to deliver new renewable energy generation across the UK. Explore the projects that have secured Contracts for Difference, including Little Crow Solar Park and BESS, and learn more about their role in supporting the transition to a cleaner energy system.
Powering the future, together
While the UK Government continues to strengthen the CfD scheme as part of its net zero strategy, we remain actively involved, expanding our CfD-backed portfolio and ensuring every project we deliver contributes to a cleaner, fairer, and more resilient energy future.
Together with our partners and investors, we’re helping shape the UK’s renewable energy transition. Get in touch to learn more about our CfD-backed projects.