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Q2 2025 Sees Diverging Trends in Solar and Wind PPA Prices Amid Rising Uncertainty

According to LevelTen Energy’s Q2 2025 Market-Averaged Continental Index report, solar and wind PPA (power purchase agreement) prices exhibited mixed trends across North America and Europe amid growing policy uncertainty.

In North America, solar P25 prices rose 1%, continuing a modest upward trend. Surprisingly, this happened despite uncertainty from tariffs and tax credit shifts linked to U.S. President Donald Trump’s repeal of the IRA’s 45Y and 48E clean energy tax credits via the “One Big Beautiful Bill.” Instead of direct price hikes, developers are embedding flexibility in contracts to account for potential policy impacts. In contrast, European solar PPA prices dropped over 5%, led by declines in markets like Italy, Poland, and Romania due to energy oversupply and a shift toward hybrid solar-plus-storage models.

Wind P25 prices surged by 11% in North America, mainly due to reduced offer volumes and delays from permitting and interconnection issues. The MISO market experienced the most significant price increases. Meanwhile, European wind PPA prices fell 2%, though the segment remains attractive for tech buyers seeking clean energy during non-solar hours.

Despite regulatory turmoil, strong electricity demand—driven by data centers and heatwaves—continues to support renewable deployment. Globally, renewable capacity additions hit a record 585 GW in 2024, contributing 92.5% of new generation.