LevelTen Energy’s latest reports reveal contrasting trends in solar power purchase agreement (PPA) prices between Europe and North America in the first quarter of 2026, with the two regions seeing opposite movements of 13% year-on-year. 

In Europe, the average solar PPA price dropped to €55.05/MWh (US$64.83/MWh) in Q1 2026, marking a 4% quarter-on-quarter decline and the fifth consecutive quarter of falls. The price is 13% lower than that in Q1 2025, and solar PPAs remain significantly cheaper than wind PPAs (€85.38/MWh) and blended deals (€70.21/MWh) — a trend that has persisted for several years. 

Solar prices also declined more sharply than other energy types: a 4.2% quarter-on-quarter drop for solar, compared to 0.7% for wind and 1.49% for blended PPAs. This comes amid tepid demand for European PPAs, with LevelTen describing 2025 as a “slow year” and noting that interest in new deals remained weak in Q1 2026.

LevelTen’s report attributes the hesitancy to sign deals to low or even negative prices, adding that offtakers are adopting more diverse contractual arrangements amid geopolitical disruptions like the Middle East conflict — which Pexapark says has pushed up European solar PPA prices by as much as 35%. 

Developers are also prioritizing adding storage to their portfolios over new generating assets to enhance stability, as exemplified by Sonnedix’s focus on solar and storage auctions in Italy. In contrast, North American solar PPA prices rose 4.6% quarter-on-quarter in Q1 2026, translating to a 13% year-on-year increase. The market-averaged price reached US$64.49/MWh, US$7 cheaper than blended PPAs and nearly US$15 cheaper than wind.

Notably, solar was the most expensive technology on North America’s continental index as recently as Q2 2025, but fell below US$55/MWh before rebounding in Q1 2026. CAISO’s “potent price increases” contributed to the overall uptick, while strong demand persists as buyers seek clean energy from various sources.