Solar power developers cut the prices for power purchase agreements during the second quarter of 2026 as they sought to entice new buyers ahead of the July 4 deadline for projects to lock in federal tax incentives.
But analysts and industry figures say the prices for solar contracts may head higher in the coming years as the loss of an investment tax credit defraying significant costs will likely push up prices to develop the renewable energy source.
The new data from LevelTen Energy — a Seattle-based firm that facilitates PPAs between energy buyers and sellers — represents the first dip in solar contract pricing in two years. Prices were down 4.8 percent from a peak during the first part of this year, dropping from an average price of $64.49 per megawatt-hour to $61.40.
Without California’s grid operator included in the PPA figures, solar’s quarter-over-quarter declines came in at a slightly lower 1.8 percent, LevelTen said.
