The US and Europe saw relatively modest increases in the average prices of solar power purchase agreements (PPA) in Q4 2022, up by 4% and 3%, respectively.
Stabilising policy changes in the U.S. have slowed price rises, whilst European policies have offered less assurance in the face of inflation and the volatile energy market.
According to Edison Energy’s Q4 Renewables Market report, the 4% rise in the US is considerable when compared with the 17% price increase seen in Q3 and the 48% total increase over 2022.
Median PPA prices in the US are currently US$2/MWh higher than the previous quarter. The slower rate of price increase in the US is mainly ascribed to rising interest rates and supply chain issues being offset by the steadying influence of the Inflation Reduction Act (IRA) and falling raw material costs, Edison said.