Solar PPA prices rise 5% in Q3 as Section 232 tariffs near

Solar PPA prices rose 5% in the third quarter, mostly in anticipation of Section 232 tariffs, according to LevelTen Energy data reported by Utility Dive.

The tariffs, announced in early August, could add $3/MWh to $7/MWh once they take effect later this year. Current rules bar developers from stockpiling modules ahead of them. Equipment pricing is already moving: more than half of solar modules have been repriced, Wolf said, with that cost passing to sellers and ultimately to offtakers.

Wind PPA prices were flat overall, but a modest decline in ERCOT pulled the North American average down while prices rose across most of the U.S. Wolf said more Texas wind projects came online in recent months while federal permitting keeps new-build contracts scarce.

Hyperscalers remain the buyers that matter for new construction. According to Wolf, 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, per CEBA.

As older wind and solar contracts expire, other buyers are bidding on existing projects, and developers are repowering or expanding sites instead of, or alongside, building new ones. LevelTen puts prices for existing-project PPAs roughly in line with new-build. Wolf framed the market as a race to lock in projects before tax credits lapse.