LevelTen reports solar PPA prices rose 5% in Q3, mainly due to new trade tariffs, while wind PPA prices held relatively steady.

Wind power purchase agreements held relatively steady in the third quarter but could begin to rise again as the latest round of tariffs takes effect later this year.

The average solar power purchase agreement (PPA) price rose 4.9% to $64.23/MWh during the third quarter of 2026, according to LevelTen Energy. Solar PPA prices are up 6% year-over-year and 12.7% since the third quarter of 2024.

Wind PPAs, by contrast, remained relatively flat in the third quarter but have increased 13.8% year-over-year and 27.5% since 2024, according to LevelTen Energy.

Tariffs have driven most of the recent increase and could push prices higher in the months ahead, said Sarah Wolf, director of North America transactions for LevelTen Energy.

Demand from hyperscalers is reshaping the PPA landscape, but the Section 232 tariffs announced in early August could add $3/MWh to $7/MWh by the time they take effect later this year, Wolf said.

Much of the third-quarter price increase is anticipatory, as buyers try to secure new contracts before the tariffs take effect, she said. However, current rules prohibit developers from stockpiling solar modules, and the tariffs are already affecting equipment pricing.

"We're already seeing more than half of solar modules repriced, and we know that price is being passed down to sellers and ultimately buyers," Wolf said.

Wind developers remain constrained by permitting challenges at the federal level. Although overall prices remained flat, wind PPA prices continued to rise for most of the U.S., according to LevelTen. A modest decline in prices within the Electric Reliability Council of Texas (ERCOT) territory pulled the North American average downward, the clean energy marketplace company said.

Compared with other regions, ERCOT has seen a larger number of wind projects come online in recent months, even as demand for wind power has cooled somewhat because buyers view solar as a safer bet in the current political landscape, Wolf said. Overall, however, contracts on new-build wind projects remain scarce. "We have much less wind than we have ever seen getting onto the platform because of the challenges with permitting," she said.

Buyers have recently gained a new opportunity, Wolf said. As the nation's renewable energy fleet begins to age, some contracts on existing wind and solar projects have expired, giving new bidders an opening. In other cases, developers are repowering or expanding existing sites instead of, or in addition to, developing new projects.

Hyperscalers remain primarily interested in new-build wind and solar and have come to dominate that segment of the PPA market. Wolf said 99% of new-build PPAs signed in the first quarter of this year went to hyperscalers, and the number of first-time PPA buyers has fallen to its lowest level since 2016, according to CEBA.

Other buyers have turned to PPAs tied to existing power projects in search of greater availability. Realistically, Wolf said, prices for new-build PPAs and for PPAs tied to existing projects remain comparable. Prices for all PPAs are likely to keep rising for the foreseeable future, given the uncertain geopolitical climate and the impending expiration of renewable energy tax credits.

"It's still a matter of racing against the clock to lock in projects" that still qualify for tax credits, she said.