Higher Prices, Fewer Deals: What’s In Store For Clean…

Corporations with renewable energy pledges are rushing to secure projects as tax credit window closes quickly.

Corporate energy buyers looking to fulfill clean electricity and emissions reduction pledges are rushing to negotiate and close contracts for U.S. solar and wind development projects as the window for qualifying for related tax credits shrinks.

The surge in demand after months of hesitation have pushed U.S. power purchase agreement (PPA) prices up 4 percent since the passage of the One Big Beautiful Bill Act (OBBBA) on July 4. That’s according to a special report published Aug. 13 by LevelTen Energy, which tracks transactions on a quarterly basis. The average cost of a PPA in North America was $57.04 per megawatt-hour in the first quarter, according to LevelTen’s pricing index, available to subscribers.

All of this collectively is making it harder to add electricity supply at a time when there is a broad acceptance that energy needs are increasing. If demand is to grow the way we are projecting, we need more supply. What isn’t talked about enough is that even when you take away the credits, the levelized cost of energy is still lower than all of your other forms of energy, including new hydro.

Rick Margolin, Director, Renewable Advisory

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Higher Prices, Fewer Deals: What’s In Store For Clean Energy Buyers

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