From pv magazine USA
Solar PPA pricing in the United States may be stabilizing, reports LevelTen Energy. After three years of sequential price increases each quarter, PPA contract prices declined 1% from the first quarter to the second quarter of 2023. Solar PPA prices increased 25% year over year in the second quarter.
“While 1% is a small change, this is the first time since Q1 of 2020 that we’ve seen the market-averaged continental solar PPA price decrease,” said Gia Clark, senior director of strategic accounts at LevelTen Energy. “It’s a promising indication that conditions are starting to stabilize.”
Developers have been challenged by inflation, supply chain complexity, rising interest rates, and regulatory uncertainty over the last few years. Despite these issues, the industry is a year removed from the US Inflation Reduction Act passage, and developers are beginning to incorporate benefits from the legislation into their strategies.
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Increased mobility in the solar supply chain is also likely contributing to the second quarter solar PPA price trends, said LevelTen. More than 12 GW of PV modules crossed the border into the United States during the first quarter of 2023 alone, compared to only 29 GW imported during all of 2022, reported Wood Mackenzie.
Meanwhile, wind PPA prices continue to climb due to low supply, rising 13% in the second quarter.
“As a result of permitting and interconnection issues, fewer wind projects are entering the market compared to solar,” said Clark.
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