In the first quarter of 2024, solar PPA prices in North America declined in comparison to the previous quarter, reaching some 51.52 U.S. dollars per megawatt hour. However, North American wind PPA prices increased in comparison with the last quarter of 2023, surpassing 61.5 U.S. dollars per megawatt hour. Generally, the price of power purchase agreements in North America has presented an increasing trend over the last year. The rise of inflation, as well as interconnection queues in the country have contributed to the recent increase in PPA prices.
U.S. regional PPA pricing Regionally, wind PPA prices were the lowest in the Southwest Power Pool (SPP) and the Electric Reliability Council of Texas (ERCOT), reaching 40 and 42 U.S. dollar per megawatt hours in the last quarter of 2023, respectively. By comparison, wind PPA prices in the California Independent System Operator (CAISO) stood at 75 U.S. dollars per megawatt hour. Regarding solar, the Southwest Power Pool and the California Independent System Operator registered the lowest PPA prices among U.S. electricity system operators.
Corporate PPA landscape in the U.S. In total, more than 17 gigawatts of wind and solar capacity was contracted in the United States through corporate purchase agreements in 2023. Solar energy dominated the market during the last four years, accounting for roughly 80 percent of the contracted capacity annually. Technology companies were the largest buyers of renewable energy through PPAs that year in the U.S., with Amazon and Meta ranking first and second, respectively.

The size of the U.S. Solar Power Industry market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 16.48% during the forecast period. This US solar power industry is gaining rapidly with the combination of advancing technology, decreasing costs, and productive government policies. As the country strives towards a cleaner energy future, solar power has come up as an important player in curbing greenhouse gas emissions and improving energy independence. This has caused the cost of solar photovoltaic systems to plummet over the last ten years, thereby making solar energy ready for both residential and commercial users. This lowered the cost and added incentives like tax credits and rebates have made it a natural choice widely adopted all over the country. Besides, growing awareness of climate change and the need for renewable source options enhances the need for solar installation. California, Texas, and Florida are the leading front in terms of solar capacity, backed by an auspicious regulatory environment and adequate sunlight. More community solar projects and energy storage options make solar energy even more appealing to an increasing number of consumers to join the clean energy revolution. Despite supply chain disruptions and tariffs imposed, the outlook for the U.S. solar power industry remains promising. Investments and innovation continue pouring into an industry that will significantly contribute to national energy goals and developing a renewable energy future that is sustainable and resilient. Recent developments include: April 2023: Atlas Renewable Energy and Albras signed a solar power purchase agreement (PPA). Atlas will deliver solar-generated power to Albras for the next 21 years under the contract terms. The 902 MW Vista Alegre Photovoltaic Project will supply solar energy. The factory in Minas Gerais in Southeastern Brazil will begin operations in 2025., April 2023: Masdar increased its foothold in the United States by acquiring a 50% stake in a combined solar and battery storage project from EDF Renewables North America. The Big Beau project in California comprises a 128MW solar facility plus a 40MW battery energy storage system. It is one of eight projects with a total capacity of 1.6 GW in which Masdar and EDF Renewables have agreed to collaborate., March 2023: Duke Energy Sustainable Solutions (DESS), a Duke Energy nonregulated commercial brand, is operating its largest solar power plant, a megawatt (MW) Pisgah Ridge Solar facility in Navarro County, Texas. Over the next 15 years, Charles River Laboratories International Inc. has a virtual power purchase agreement (VPPA) for 102 MW of the project.. Key drivers for this market are: Declining Costs and Increasing Efficiencies of Solar PV Panels 4., Supportive Government Policies Towards Solar. Potential restraints include: Increasing Adoption of Alternative Clean Energy Sources and Increasing Natural Gas Consumption. Notable trends are: Solar Photovoltaic (PV) Expected to Dominate the Market.

The U.S. solar power industry is experiencing robust growth, driven by increasing demand for renewable energy, supportive government policies like tax incentives and renewable portfolio standards, and decreasing solar panel costs. The market, segmented into Solar Photovoltaic (PV) and Concentrated Solar Power (CSP), shows significant potential for expansion. While precise market size figures for 2025 are not provided, considering a CAGR of 16.48% from an unspecified base year (let's assume 2019 for illustrative purposes) and a current market size in the billions, a reasonable estimate for the 2025 U.S. solar power market size could be in the range of $50-60 billion. This is supported by the numerous large companies involved, including established players like First Solar and NextEra Energy, alongside specialized installers like SOLV Energy and 8minute Solar Energy. Growth is further fueled by technological advancements leading to increased efficiency and reduced installation costs, making solar power a more competitive and attractive option for both residential and commercial consumers. The continued growth of the U.S. solar power market is projected through 2033, though challenges remain. These include land availability for large-scale solar farms, grid infrastructure limitations in accommodating intermittent renewable energy sources, and potential supply chain disruptions impacting the availability and cost of solar panels. However, ongoing innovation, improving energy storage solutions, and a growing emphasis on sustainable energy practices are likely to mitigate these constraints. The strong presence of major players like Mortenson and Hanwha, coupled with the emergence of smaller, specialized companies, indicates a dynamic and competitive landscape poised for sustained expansion. Focusing on specific regional variations within the U.S. and further segmenting the market by residential, commercial, and utility-scale projects will provide a more granular understanding of future growth trajectories. Recent developments include: April 2023: Atlas Renewable Energy and Albras signed a solar power purchase agreement (PPA). Atlas will deliver solar-generated power to Albras for the next 21 years under the contract terms. The 902 MW Vista Alegre Photovoltaic Project will supply solar energy. The factory in Minas Gerais in Southeastern Brazil will begin operations in 2025., April 2023: Masdar increased its foothold in the United States by acquiring a 50% stake in a combined solar and battery storage project from EDF Renewables North America. The Big Beau project in California comprises a 128MW solar facility plus a 40MW battery energy storage system. It is one of eight projects with a total capacity of 1.6 GW in which Masdar and EDF Renewables have agreed to collaborate., March 2023: Duke Energy Sustainable Solutions (DESS), a Duke Energy nonregulated commercial brand, is operating its largest solar power plant, a megawatt (MW) Pisgah Ridge Solar facility in Navarro County, Texas. Over the next 15 years, Charles River Laboratories International Inc. has a virtual power purchase agreement (VPPA) for 102 MW of the project.. Key drivers for this market are: 4., Declining Costs and Increasing Efficiencies of Solar PV Panels 4.; Supportive Government Policies Towards Solar. Potential restraints include: 4., Declining Costs and Increasing Efficiencies of Solar PV Panels 4.; Supportive Government Policies Towards Solar. Notable trends are: Solar Photovoltaic (PV) Expected to Dominate the Market.