From pv magazine USA
LevelTen Energy has released its latest quarterly report on PPA pricing in North America. It noted a second consecutive quarter of stable pricing in the first three months of 2025.
A PPA is an arrangement in which a third-party developer installs, owns, and operates an energy asset on a customer’s property, with the customer purchasing the system’s electric output for a set period. PPAs are typically signed with corporate entities or electric utilities as buyers, and for solar assets, they often last 20 to 25 years.
Market-averaged solar PPA prices rose 1% quarter-over-quarter to start 2025, said LevelTen Energy.
The company called the stability an “encouraging sign” that the solar sector is stabilizing after pandemic-era supply chain issues and numerous policy challenges.
The first-quarter prices do not reflect the Trump administration’s tariff enforcement, which LevelTen Energy described as “certainly a cause for concern.” However, the report noted that the US solar sector has become adept at navigating tariffs, which were also widely imposed by the Biden administration.
Despite uncertainty over tariffs and clean energy tax credits from the US Inflation Reduction Act (IRA), LevelTen Energy said deals are still progressing. It highlighted how the pandemic era prompted the emergence of new contractual terms that offer protection and flexibility. The sector continues to include risk-mitigating provisions, such as price adjusters to address tariff concerns, change-of-law clauses, and increased use of trade event provisions within Force Majeure clauses to address executive actions and unpredictable events.
“The future is unknown, and buyers are encouraged to be mindful and accommodating of what developers need to secure financing,” said the report.
Year over year, solar PPA prices increased by $5.11/MWh, rising 9.8% from first-quarter 2024 prices, said LevelTen Energy.
Solar PPA prices vary widely by region. From highest to lowest: NYISO ($116.06); ISO-NE ($111.50); PJM ($82.15); MISO ($65.20); CAISO ($58.00); SPP ($57.84); AESO ($51.50); ERCOT ($44.00).
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