Solar power purchase agreement (PPA) prices in North America increased 6% year-over-year (YoY) in the third quarter (Q3) of 2026, while prices in Europe declined 4.1%, according to LevelTen Energy‘s latest PPA Price Index reports.

Quarter over quarter (QoQ), solar PPA prices rose 4.9% in North America and 0.4% in Europe.

North America’s 25th percentile (P25) solar PPA offer price was $64.23/MWh during the quarter, while wind PPA prices were $68.27/MWh.

The reports track renewable energy PPA offer prices from developers across North America and Europe, using the P25 price index to measure competitive pricing trends.

North America

Solar PPA offer prices in North America increased 12.7% over the past two years, reflecting sustained upward pressure on renewable energy project development costs.

LevelTen attributed the Q3 increase in solar PPA prices primarily to Section 232 tariffs announced in August 2026, which apply to polysilicon, ingots, wafers, cells, and modules.

In August, the U.S. announced a 15% additional tariff on specified polysilicon derivative products and set minimum import prices for polysilicon, wafers, solar cells, and modules, following a Section 232 investigation under the Trade Expansion Act of 1962. The investigation found that imports of polysilicon and its derivatives threatened U.S. national security.

The U.S. Department of Commerce has also introduced measures to prevent stockpiling of polysilicon-derived products ahead of the tariffs taking effect.

According to LevelTen’s analysis, the measures could increase imported solar module prices by more than 40%.

Although the tariffs are scheduled to take effect in December 2026, developers have already begun incorporating their anticipated impact into PPA offer prices.

Wind PPA prices remained largely unchanged during the quarter, declining marginally by 0.1% QoQ. However, prices increased 13.8% YoY and 27.5% over the past two years.

LevelTen observed that wind PPA prices increased across most markets, but a modest decline in the Electric Reliability Council of Texas (ERCOT) market offset increases elsewhere. ERCOT’s larger pool of offers gives it greater weight in the continental index.

Wind developers also face higher costs for steel, aluminum, and certain copper products due to import duties.

Federal permitting delays were another challenge behind the subdued growth of wind projects. Several projects still can’t progress because the Federal Aviation Administration and the Department of Defense have withheld essential determinations and mitigation agreements.

These constraints have prompted some electricity buyers to prefer operational wind projects to secure capacity with lower development risk.

LevelTen also highlighted the influence of corporate electricity procurement on the PPA market, particularly demand from data center operators seeking to secure electricity supplies.

Uncertainty surrounding revisions to corporate greenhouse gas accounting standards has led some buyers to delay procurement decisions. Meanwhile, developers face deadlines to place eligible projects into service by the end of 2030 to qualify for federal tax credits.

Europe

European solar PPA prices increased marginally by 0.4% QoQ, interrupting a prolonged decline in renewable energy contract prices.

However, prices remained 4.1% below Q3 2025 levels and 13.6% below Q3 2024.

LevelTen attributed the stabilization to rising solar module prices, higher interest rates, and increasing development costs.

In solar-heavy markets such as Spain, developers have limited scope to further reduce PPA prices while keeping projects financially viable.

Higher natural gas prices, influenced by the conflict in the Middle East, have also supported forward electricity prices in gas-linked markets such as Denmark, Poland, and Germany.

The report noted considerable differences across European markets. Solar PPA prices increased significantly in Finland but declined in Sweden. Prices remained stable in Denmark and edged lower in Spain and Italy.

Wind PPA prices increased 0.6% QoQ and 1.8% YoY, although they remained 1.5% below their level two years earlier.

LevelTen attributed the relative strength of wind prices to higher electricity capture rates and increasing demand for renewable energy generation outside solar production hours.

Wind generation during evening and nighttime hours has become particularly attractive to buyers seeking to reduce exposure to declining electricity prices during periods of high solar generation.

Wind PPA prices rose significantly in Italy during the quarter but fell in Finland, where rising wind generation continues to pressure electricity capture prices.

Hybrid PPAs

Hybrid renewable energy PPAs, which combine renewable generation with battery energy storage, are gaining traction across Europe as developers seek to address falling electricity prices during periods of high renewable generation.

However, hybrid PPA offers declined 2.9% QoQ and 10.6% YoY. Prices were 6.2% below their Q3 2024 level.

LevelTen recorded hybrid PPA offers across nine European markets during the quarter, with five markets meeting the minimum data requirements for publishing P25 prices.

Spain and Portugal accounted for nearly half of all hybrid offers, while Nordic and Baltic markets represented more than 40%.

The report noted that hybrid PPA prices declined in Germany and Finland but increased in Spain.

In Germany, hybrid arrangements have become a primary route for solar developers seeking corporate electricity buyers.

The report also highlighted the growing interest in operational renewable energy projects. Operational assets accounted for almost 40% of standalone PPA offers on LevelTen’s platform and nearly 60% of wind offers.

In Spain, operational projects accounted for most solar PPA offers as developers of new projects struggled to secure commercially viable agreements.

LevelTen analyzed 206 price offers from 166 renewable energy projects across six U.S. electricity markets for its North American quarterly comparison. Its European analysis covered 75 offers from 71 projects across 14 countries, while the hybrid PPA index included 22 offers from 21 projects across nine countries.

The indices reflect offered prices for renewable energy contracts, not tariffs finalized through executed PPAs.

In April 2026, LevelTen reported that solar PPA prices rose 13% YoY in North America during Q1 2026, while falling 13% in Europe.