U.S. solar and wind contract prices climbed sharply in the first quarter, reflecting mounting pressure on project developers from tariffs, labor shortages and permitting hurdles.
A report released on Tuesday by LevelTen Energy highlighted the scale of the increase across power purchase agreements (PPAs).
Solar PPA prices rose about 13% compared to the same period last year, while wind contracts jumped nearly 24%, the data showed.
Developers pointed to rising input costs and regulatory bottlenecks as key drivers behind the upward trend.
Wind projects in particular faced intensified scrutiny over federal permits under the administration of Donald Trump.
Approvals involving agencies such as the Federal Aviation Administration have slowed project timelines.
Solar developments, though also affected by higher costs and permitting challenges, remain in strong demand.
Their relatively faster deployment timelines make them attractive for powering energy-hungry data centers.
Large corporate buyers continue to dominate renewable energy demand, especially those seeking reliable power supply.
However, smaller firms pursuing climate targets have scaled back procurement amid rising prices and uncertainty over emissions reporting rules.