LevelTen: European solar PPA prices rise just 1.3% in Q1 2025

Facebook
Twitter
LinkedIn
Reddit
Email
BNZ's Alamak Solar project in Spain.
In Spain, the average solar PPA price fell by 5.1% between the fourth quarter of 2024 and the first quarter of 2025. Image: BNZ.

The average value of a solar power purchase agreement (PPA) signed in Europe in the first quarter of 2025 was just 1.3% higher than in the previous quarter, demonstrating significant stability in the European solar offtake space.

This is a key conclusion to be drawn from LevelTen Energy’s latest report into the European renewable PPA sector, published today, which found that the price of the average solar PPA agreed in Europe increased by just €0.79/MWh (US$0.88/MWh) from the fourth quarter of 2024 to the first quarter of 2025, reaching €63.11/MWh.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

There was similar stability in the wind sector – the report notes that the average price of a wind PPA signed increased just 0.9% quarter-on-quarter – and LevelTen said that this may be a good time to make investments in the sector, as “pricing stability is undoubtedly here.”

This stability is reflected in some of Europe’s leading markets. In Spain and France, for instance, the average solar PPA price decreased by 5.1% and increased by 6.3%, respectively, from one quarter to the next. Compared to the first quarter of 2024, meanwhile, Spain saw a 3.9% decline in offtake price, while France saw a 6.9% increase, suggesting that, even over a longer time frame, there is stability in the offtake agreements signed in these key markets.

However, other countries reported greater variation in prices, most notably Denmark and Bulgaria, which reported a quarter-on-quarter increase in solar PPA prices of 26.1% and 13.5%, respectively, the most among the countries profiled. Over the last year, there have also been significant declines in the average solar PPA price signed in Sweden, Poland and Germany, with deal prices in these countries falling by 20.8%, 17.7% and 15.2%, respectively, from the first quarter of 2024 to the first quarter of 2025.

This is the latest example of falling prices in the German solar sector, following the Federal Network Agency’s, the Bundesnetzagentur’s, lowering of price ceilings for this year’s PV auctions. This year’s auctions have delivered lower prices and been consistently oversubscribed, suggesting that solar power is becoming more popular in Germany.

However, last year, LevelTen director of European analytics Plácido Ostos told PV Tech Premium that there is likely to be a limit to these price declines, saying that “there is a limit” to how far these figures can fall before deals become unworkable.

Stability reflected in blended PPAs

Additionally, blended PPAs – those that incorporate multiple renewable power technologies – have seen significant stability in prices, with the average PPA price across Europe increasing just 1.1% from the fourth quarter of 2024 to the first quarter of 2025. This is a year-on-year decrease of 5.4%, a slightly larger figure, but one that would not characterise the sector as being unstable, or challenging to invest in.

This is also a positive development considering the growing popularity of these hybrid offtake deals, including those teamed with storage solutions. At least week’s Intersolar Europe conference, held in Munich, Itamar Orlandi, director for commercial strategy at Swiss consultancy Pexapark, which produces its own PPA reports, said that there is a risk regarding “investing in a single renewable power technology”, and that hybrid deals have become an important tool to minimise this risk.

“We’re seeing the independent power producers shift in parallel, desperately chasing anything that’s wind or hydropower to dilute the solar pipelines they want to bring to market,” said Orlandi.

PV Tech’s publisher Solar Media will host the Renewables Procurement & Revenue Summit on 21-22 May 2025 in London. The event will explore meeting Europe’s energy demand, the role of data centres in the energy transition, the outlook for European power and PPA prices and more. For more information, go to the website.

25 November 2025
Warsaw, Poland
Large Scale Solar Central and Eastern Europe continues to be the place to leverage a network that has been made over more than 10 years, to build critical partnerships to develop solar projects throughout the region.
2 December 2025
Málaga, Spain
Understanding PV module supply to the European market in 2026. PV ModuleTech Europe 2025 is a two-day conference that tackles these challenges directly, with an agenda that addresses all aspects of module supplier selection; product availability, technology offerings, traceability of supply-chain, factory auditing, module testing and reliability, and company bankability.
10 March 2026
Frankfurt, Germany
The conference will gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing out to 2030 and beyond.

Read Next

June 23, 2025
Solar project developer Cero Generation has started commercial operations at its 48MW Castrum agrivoltaics (agriPV) project in western Italy.
June 23, 2025
Q Energy and Velto Renewables have inaugurated Europe’s largest floating solar power plant in the Haute-Marne region of France.
June 23, 2025
The volume of power purchase agreements signed in May has registered a low of 280MW, according to Swiss consultancy Pexapark.
June 23, 2025
Eni has sold a 20% stake in its renewables arm, Plenitude, to global investment manager Ares Management Corporation.
June 20, 2025
Akuo has signed a 15-year power purchase agreement (PPA) with Imerys to develop a solar power plant in Texas.
Premium
June 20, 2025
Panellists discuss some of the challenges in European solar's financial landscape at an event organised at Intersolar Europe 2025 by PV Tech.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
June 30, 2025
10am PST / 6pm BST
Solar Media Events
July 1, 2025
London, UK
Solar Media Events
July 1, 2025
London, UK
Media Partners, Solar Media Events
July 2, 2025
Bangkok, Thailand
Media Partners, Solar Media Events
September 2, 2025
Mexico City, Mexico