Business

US Solar and Wind Contracts Surged in Q1, Faced Sharply Higher Prices
By Reuters | 14 Apr, 2026

Demand for solar and wind power contracts surged in Q1 but faced higher prices due to tariffs, labor shortages and permitting difficulties.

U.S. solar and wind contract prices rose sharply in the first quarter as project developers faced tariffs, labor shortages and permitting challenges amid soaring demand for power from data centers, according to a report published on Tuesday.

Prices for solar power purchase agreements, contracts known as PPAs, were up 13% from the first quarter of last year, and wind PPAs were nearly 24% higher, according to data from LevelTen Energy, an online hub for renewable energy sellers andcorporate buyers.

Wind projects faced tough scrutiny from the Trump administration for federal permits, particularly from the Federal Aviation Administration, the report said.

Solar projects are being hit with higher costs and permitting constraints, but are in high demand from customers because they can be brought online quickly to serve data center needs.

Large corporate buyers in need of power account for most renewable energy demand.

Smaller corporate buyers that enter contracts to meet climate change goals have slowed their procurement due to higher prices and pending changes to greenhouse gas reporting rules.

(Reporting by Nichola Groom; Editing by Jamie Freed)