PPA prices in the US battered by policy headwinds

According to the LevelTen Energy 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.

Prices are also being driven up by tariffs that have taken effect on metals such as steel, copper and aluminium.

In the report, LevelTen states that in response to these policy shifts:, developers "are working hard to safe harbor as many projects as possible - helping bolster tax-credit-eligible project supply for buyers”.

In terms of wind, a similar trend is visible. P25 wind prices rose by nearly 5% in Q3, and show a14% 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.

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Prices are going up and wind developers require prospective buyers to be open to risk-sharing.

As a result of these trade-law moves, states LevelTen, PPA counterparties are employing price adjusters and indexation in their contracts. This allows PPA prices to be re-opened after contract signing and price flexibility within agreed-upon ranges.

Developers are also working as quickly as possible to safe harbour projects helping to bolster the future supply of tax-credit-eligible projects for PPA buyers.