Spain standalone solar PPA prices fall to €30.93/MWh

Standalone solar power purchase agreements in Spain have reached an average price of €30.93/MWh, according to data reported by pv magazine. This figure represents a 1.2% decrease compared to the previous quarter.

The annual trend shows a more pronounced shift, with prices falling 7.7% year on year.

Hybrid Market Shifts

While standalone solar prices in Spain eased, hybrid power purchase agreements moved in the opposite direction. The average price for these hybrid PPAs reached €48/MWh, marking a 6.8% increase compared to the previous quarter.

In contrast, Germany’s hybrid solar market experienced a sharp correction. Hybrid PPA prices in that country fell 12.7% quarter on quarter.

Index Methodology and Context

LevelTen Energy tracks European solar PPA pricing through an index anchored to prices from eight quarters prior. The index stood at 0.86 in Q3 2026, reflecting a 0.4% rise from the previous quarter.

Metric	Value
European solar PPA index (Q3 2026)	0.86
European solar PPA price (Q3 2024)	€63.64/MWh
Quarterly price change (Q2 to Q3 2026)	0.4%

Curtailment and Asset Mix

• Spain and Portugal account for almost 50% of European hybrid contracts.
• Renewable energy curtailment in Spain reached 2.5 TWh in the first half of 2026.
• This volume is more than three times the amount recorded in the first half of 2025.
• The figure is also 50% higher than the total curtailment recorded for all of 2024.
• Operational assets represented about 40% of PPA transactions.
• In Q3 2026, operational assets made up nearly 40% of PPA offers, up from under 10% previously.

Curtailment refers to the reduction of renewable energy output, often due to grid constraints or oversupply.

US Market Contrast and Wind Index

LevelTen Energy reported that average solar PPA prices in the United States increased by 4.9% during the third quarter of 2026. The consultancy attributes the broader European price increase to macroeconomic factors, specifically higher photovoltaic module prices and interest rates, which are raising project development expenses. To maintain financial viability, these rising costs push PPA prices slightly higher.

In Europe, the wind PPA index stood at 0.99 in the third quarter of 2026. This figure indicates a much smaller decline over the two-year period compared to the solar index.

The quarterly increase in solar prices does not offset the cumulative fall since 2024. Instead, the data point to recent stabilization following a more pronounced period of decline. Hybrid PPAs are gaining traction across Europe, with LevelTen reporting contracts in nine markets during the third quarter. The difference between standalone and hybrid prices in Spain reflects the additional value storage provides by shifting generation to other hours, reducing exposure to low electricity prices and limiting the economic impact of curtailment.

What to watch

LevelTen Energy notes that standalone solar prices are approaching the lower limit for project financing, a threshold that typically constrains further declines. However, specific future price trajectories for hybrid versus standalone projects remain unknown.