Prices for solar Power Purchase Agreements (PPAs) in Europe are still falling.

LevelTen Energy has published its Q3 2025 European PPA Price Index Report, indicating a decline in solar PPA prices, while wind prices have remained stable. Solar prices fell by 2.4% due to lower demand for renewable capacity relative to supply in many markets. LevelTen observed an increase in solar price cannibalisation in multiple countries, leading to lower revenue expectations and negative wholesale prices.

In Ireland, solar PPA offers are the highest-priced, with a rapid expansion of data centres potentially boosting demand for this solar capacity. Wind prices decreased slightly by 0.1% but are stable quarter over quarter; the wind sector in Europe is showing signs of resurgence and is more resilient to price cannibalisation compared to solar. LevelTen noted that seven wind markets reported sufficient PPA offers to establish a P25 price, marking a high for their Wind Index in over a year, with Portuguese wind joining for the first time.

European policy is largely affected by developments in France and the UK. In France, regulatory uncertainty increased following a no-confidence vote, leading to the resignation of former Prime Minister Francois Bayrou. Ongoing budget issues and government support uncertainty for renewables contribute to making the PPA market a relatively safer option for French energy players.

Conversely, in the UK, the finalisation of the REMA process has provided developers and investors with more certainty, maintaining a national electricity price instead of transitioning to a zonal pricing system.

In the US, LevelTen's PPA price index shows a contrasting trend. The Q3 2025 North America PPA Price Index Report reveals a 4% increase in P25 solar PPA prices, primarily driven by President Trump's "One Big Beautiful Bill" Act and updated tax credit guidance. Wind prices have also risen, with P25 wind prices increasing nearly 5% in Q3 and up 14% year over year, influenced by policy changes, including alterations in federal review processes and the revocation of previous project approvals.