European solar PPA prices continue to decline

Energy marketplace analytics firm LevelTen Energy has released its Q3 2025 European PPA Price Index Report which shows that solar PPA prices continue to decline, while wind prices have stabilised. 

Solar prices dropped by 2.4% as demand for renewable capacity lagged behind available supply in many markets.

According to LevelTen, an increase in solar price cannibalisation is evident in several countries, as well as growing low and negative wholesale prices, decreasing revenue expectations.

LevelTen states that Irish solar PPA offers are at the top of the pricing spectrum and a fast rate of data-centre buildout in the country may surface buyers for this PV capacity. 

Wind prices, however, are holding steady quarter over quarter, declining only by 0.1%.

LevelTen’s data suggest Europe's wind sector is showing signs of regaining momentum and is also more resilient to price-cannibalisation than standalone solar facilities.

LevelTen said in a release: “In Q3, seven distinct wind markets hosted an adequate volume and diversity of PPA offers to post a P25 price — the most markets on our Wind Index in over a year. Excitingly, Portuguese wind joined our Index for the first time.”

The policy picture in Europe is influenced mainly by situations in France and the UK.

Also of interest: European wind and solar PPA prices drop in Q2 shows LevelTen 2024 Index

In France, regulatory uncertainty was heightened by a no-confidence vote in the National Assembly, which forced former Prime Minister Francois Bayrou to resign. Also, ongoing budgetary woes and uncertainty around the future of government support for renewables remains high. LevelTen suggests this environment is making the PPA space a comparatively safer bet for French energy players.

In the UK, the resolution of the REMA process — a review of the country's electricity market design — has provided greater certainty for developers and investors. The final REMA decision resulted in the retention of a single national price for electricity, rather than moving to a zonal pricing system.

A different picture across the pond

In the US, PPA LevelTen's PPA price index paints a very different picture. 

According to the Q3 2025 North America PPA Price Index Report, P25 solar PPA prices increased by 4% quarter over quarter, driven largely by President Trump's 'One Big Beautiful Bill' Act and Treasury guidance on tax credit qualification.

In terms of wind, a similar trend is visible. P25 wind prices rose by nearly 5% in Q3, and show a 14% rise year over year.

Again, LevelTen highlights the impact of policy headwinds, such as shifts in federal review and approval processes and the revoking of project approvals granted under the previous administration.