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.
OBBBA sunsets many renewable energy tax incentives far earlier than the rules set out by the Inflation Reduction Act (IRA). Solar and wind projects must start construction by July 2026 to benefit, and new…
