​The UK government has increased the maximum prices it will pay for electricity generated by new wind and solar farms, aiming to attract more bids in the next renewable energy auction and accelerate progress towards its 2030 clean power goals.

The updated price limits, known as Administrative Strike Prices, have been raised for offshore and floating wind projects, while the cap for solar energy has been reduced. The changes come ahead of the August auction under the Contracts for Difference scheme, which supports low-carbon electricity generation by offering developers a fixed price for energy over a set period.

Offshore wind projects can now bid for up to £113 per megawatt-hour, up from £102 last year. Floating offshore wind, a newer and more complex technology, has seen its cap rise to £271 per megawatt-hour. The price for onshore wind has increased slightly to £92, while solar energy has seen a reduction to £75.

The Department for Energy Security and Net Zero said the auction will remain competitive, as developers often submit bids below the maximum rate. The clearing price is set through this bidding process, which helps ensure value for money while encouraging investment in clean energy infrastructure.

To further support project viability, the government has introduced several changes to the auction process. For the first time, offshore wind projects without full planning permission can enter the bidding process. Contract lengths for wind and solar have also been extended from 15 to 20 years, and the Energy Secretary will now review bid details before finalising the auction budget.

The government says these reforms are designed to secure the clean electricity needed to reduce reliance on fossil fuels, protect households from volatile gas prices, and ensure long-term energy security.