For the first time since LevelTen Energy began tracking the U.S. market, solar power purchase agreement offer prices rose in 2020, with fourth-quarter prices 11.5% higher than a year earlier.
For the first time since LevelTen Energy began reporting on power purchase agreement prices in the second quarter of 2018, solar PPA offer prices rose in 2020, with fourth-quarter prices rising 11.5% year on year, for an average price of $30.56 per MWh. Broken down by independent system operator, PJM experienced the highest prices, averaging $37.5/MWh.
“In addition to disruptions caused by Covid, grid-connection delays and permitting challenges have created a bottleneck for projects in areas where demand is high, creating supply constraints that have put upward pressure on prices,” said Rob Collier, vice president of Developer Relations.
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