European Solar PPA Prices Rise Just 1.3% in Q1 2022

Average solar power purchase agreement (PPA) prices in Europe rose by just 1.3% in the first quarter of 2025, reflecting strong pricing stability across the continent’s renewable energy sector.

According to LevelTen Energy’s latest European PPA Market Report, the average solar PPA price increased by just €0.79/MWh from Q4 2024, reaching €63.11 MWh. This minor uptick underscores a steady and mature solar offtake market.

The report also points to similar stability in the wind sector, where average PPA prices rose just 0.9% quarter-on-quarter. LevelTen noted that “pricing stability is undoubtedly here,” suggesting the current market could be a favorable environment for new investments in renewable energy.

Price movements across Europe’s major solar markets further support this trend. In Q2025, Spain saw a 5.1 % decrease in average solar PPA prices, while France reported a 6.3% increase. Compared to the same period last year, Spain’s prices declined 3.9%, while France’s rose 6.9% —further supporting the notion of pricing stability over both short and long-term periods.

However some markets reported greater volatility. Denmark and Bulgaria recorded the largest quarter-over-quarter increases in solar PPA prices, rising by 26.1% and 13.5%, respectively. Over the past year, significant price declines were observed in Sweden(20.8%), Poland (-17.7%), and Germany (-15.2%).

Nevertheless,experts caution that there is a limit to how far PPA prices can fall. As LevelTen’s Directorof European Analytics, PlácOstos, noted lastyear,“There is a limit” to how far these figures can fall before deals become unworkable.

Overall, the stable pricing environment observed in Q1 2025 highlights the growing maturity of Europe’s renewable energy market, offering reassurance to developers and investors alike.