Abstract Next generation turbines can be installed to exploit tidal energy resource in estuaries. However, the ecological implications of such deployments remain unknown. Accordingly, this study is focused on the impact of tidal farms on intertidal areas and associated waterbird habitats in estuaries. A numerical model simulates the hydrodynamic conditions of the Solway Firth, comprising one of the most extensive intertidal zones in the UK. The effects of tidal farms with different turbine densities have been evaluated in terms of changes to the areas of habitat for wetland bird species of conservation importance. The results suggest that any habitat loss may be minor and that in some cases there may be an increase (also small) in the area of important habitat. The percentage change in intertidal areas is also considerably lower than that expected to result from tidal barrages of similar capacities, implying the potential for tidal farms to present an alternative solution for exploiting tidal energy in highly protected areas. The changes in the extent of intertidal habitat are not proportional to the energy dissipated by the tidal farm. Therefore a range of tidal farm designs should be evaluated in order to optimise installed capacity while minimising habitat loss. However, the site-dependency of the impacts and the complex responses to change of estuarine ecosystems reinforce the requirement for detailed studies to be undertaken for each specific location and array configuration. The methodology presented here is appropriate for such assessments as it can be applied to different locations and turbine types.