US Solar PPA Prices Rise 4.9% in Q3 as Tariff Expectations Reshape Market

Long-term solar power purchase agreement prices in the United States increased 4.9% over the three summer months, with anticipated import tariffs emerging as the primary driver, according to analytics platform LevelTen Energy.

The average solar PPA rate reached $64.23 per megawatt-hour — a 6% annual gain and 12.7% above Q3 2024 levels. Corporate buyers moved to lock in prices before Section 232 trade restrictions take full effect later this year; those measures, introduced in August, are projected to add $3 to $7 per MWh once fully enforced. LevelTen’s North America transactions director Sarah Wolf said more than half of solar modules on the market have already been repriced, with developers passing those costs through to buyers.

Wind fared differently: average contract rates in the sector held steady for the quarter, though year-on-year wind PPA prices are up 13.8%. A modest softening of deals in Texas’s ERCOT zone, where new generating capacity has come online, helped contain broader price pressure in that segment.

The buyer landscape is also narrowing. Hyperscalers accounted for 99% of new PPA signings in the first quarter, while the share of first-time buyers fell to its lowest point since 2016, according to CEBA data. As existing agreements expire, contracts covering already-operating plants are becoming more common on the market. Wolf anticipates further price increases as developers compete for available tax credits.

Source: Utility Dive