LevelTen Energy’s Q2 2025 report for PPA prices shows that North American solar PPA prices rose just 1% in Q2 2025, continuing stable trends
European solar PPA prices dropped over 5%, offering better clarity and long-term value to buyers
Wind PPA prices increased in North America, but dipped slightly in Europe amid ongoing permitting hurdles
Analysts observe that policy uncertainty, energy oversupply, and storage-driven hybrids are reshaping buyer strategies in both regions
LevelTen Energy’s Q2 2025 data shows North American P25 power purchase agreement (PPA) solar prices held largely steady with a modest 1% increase, mirroring Q1 trends despite ongoing policy uncertainty. In contrast, Europe saw a decline of over 5%, signaling improved stability and opportunity for buyers after several quarters of price leveling.
This was the 2nd consecutive quarter of modest price increase in the North America market with solar prices reaching $57.55/MWh, says LevelTen Energy. For the previous quarter, it had reported an average solar PPA price in the region of $48.81/MWh (see LevelTen Energy Reports Stable PPA Prices In Q1 2025).
In its Q2 2025 North America PPA Price Index Report, LevelTen Energy notes that rather than raising prices directly, many developers and buyers are turning to flexible contract terms that allow adjustments if tariffs, tax credits, or other policy changes take effect.
On the other hand, P25 wind power prices on LevelTen Energy’s marketplace rose by 11% during the reporting quarter to $71.31/MWh, driven mainly by the significant quarterly spike in MISO wind prices.
An accelerated phase-out for wind and solar tax credits is undoubtedly an intimidating prospect, and renewable players must sharpen their pencils and forge new paths forward, states LevelTen Energy. Yet, it points to the latest Levelized Cost of Energy+ report of Lazard that reinforces that even without tax credits, wind and solar remain “the lowest-cost and quickest-to-deploy generation resource” (see Lazard Analysis: Utility-Scale Solar, Wind Still Cheapest Power Options).
The trend will become clearer in Q3 2025 prices when the impact of the One Big Beautiful Bill Act (OBBBA) becomes more visible, it adds.
Europe
In Q2 2025, P25 solar PPA prices in Europe fell over 5% to €59.62/MWh, signaling a clear shift from the sharp increases of previous years. Most markets, especially Italy, Poland, and Romania, saw strong declines due to energy oversupply, while in Germany and Spain, high offer volumes and a shift toward hybrid solar-plus-storage projects also pushed prices down.
“After three quarters of stable trends, Q2’s price drop reinforces that the sharp increases of recent years have leveled off, giving PPA buyers greater clarity and improved conditions to act with confidence. While further declines may come, today’s market offers a meaningful opportunity to secure long-term value without the urgency or volatility of past years,” observe the analysts.
Wind prices here declined by 2% to €88.69/MWh during the reporting quarter, but the industry continues to battle challenges around land availability and permitting, along with tough interconnection queues.
Going forward, Europe’s PPA activity may be impacted by the political changes. An April blackout in Iberia, which was due to voltage control, sparked debate among political circles in recent times. In Poland, the new coal-leaning President Karol Nawrocki is feared to slow climate progress as he has been critical of the EU’s climate initiatives. Moreover, LevelTen also points to the trend of some EU countries pushing to weaken corporate climate rules, which it fears could affect PPA activity.
Meanwhile, PPA prices in Europe are dropping, opening up good opportunities for buyers. But with risks like price cannibalization, hybrid deals with storage are gaining appeal. Quick, strategic action remains key, as top PPA offers are going fast to large, sophisticated energy buyers, according to LevelTen’s Q2 2025 European PPA Price Index Report.
In a separate news related to Seattle-based LevelTen Energy, the online renewable energy marketplace has filed a Worker Adjustment and Retraining Notification (WARN) in the US to permanently lay off 60 workers with effect from August 15, 2025.
LevelTen’s decision to reduce its workforce aligns with the ‘economic impacts of the recent federal budget legislation, tariff uncertainty, and ongoing permitting challenges,’ stated the company in an email to GeekWire. The management does not see new customers for renewable energy power purchase agreements, despite growing demand for energy, owing to the above-mentioned challenges on the supply side.