LevelTen warns of rising PPA prices amid US trade, policy strain

PPA prices in North America rose 4% quarter over quarter in the third quarter of 2025, while wind PPA prices increased 5%, according to LevelTen Energy. The PPA marketplace operator warned that prices could continue to climb for “months and years to come.”

LevelTen reported that average P25 (25th percentile) solar PPA prices reached $59.77/MWh, while wind PPAs averaged $74.69/MWh. The data covers AESO, CAISO, ERCOT, ISO-NE, MISO, PJM, and SPP power markets. The company said rising prices reflect mounting policy and trade pressures in the United States.

Developers remain optimistic about building a “bridge” of tax credit–eligible projects beyond the 2028 tax credit “cliff” imposed by the One Big Beautiful Bill Act (OBBBA), according to LevelTen.

Still, the company cautioned that “PPA buyers should avoid complacency and procure with haste.” It said that even projects with strong prospects for tax credit access face additional challenges, including tighter federal permitting reviews, higher tariffs, pending Foreign Entity of Concern (FEOC) rules, and a new anti-dumping and countervailing duty (AD/CVD) investigation into solar component producers.

Tariffs have already become a key driver of higher PPA prices. “Section 232 tariffs have been applied across a huge array of trading partners in recent months. While various pauses and ongoing trade negotiations have delayed their effects to varying degrees, their impacts on PPA prices are now coming through more fully,” said the report.

Section 232 measures include 50% duties on aluminum, steel, and copper – materials essential to solar, wind, and grid infrastructure. These duties are applied on top of existing country-specific tariffs, causing what LevelTen described as “profound rises in prices” for key inputs.

Further cost risks could stem from the Trump administration’s investigation into polysilicon imports and a new AD/CVD probe targeting solar component producers in Indonesia, India, and Laos.

“All in, rising solar prices are unsurprising to see, with developers asking PPA buyers to help share the CapEx increases and development risks that result from these trade policies,” the report said.