Deadline for federal tax incentives looms,and renewable power purchase agreement (PPA) prices are about to spike. It's all about Trump's “One Big Beautiful Bill Act” (OBBBA), which speeds up phase-out of wind and solar tax credits.
Developers are racing against clock . Projects don't need to be done by end of 2027,but construction must start before then. Clean energy buyers scrambling to seal deals before July 4. Ryan Kennedy from pv magazine warns: wait too long,lose current pricing.
“Clean energy buyers waiting for ideal conditions to sign renewable PPAs are running out of time,” Kennedy said . Pressure's on for procurement managers to move fast. Delays mean higher costs.
U.S. district court decision let developers qualify for tax credits by showing 5% of project costs incurred. But LevelTen warns: tight timelines,bottlenecks might stop many from using this loophole.
Sarah Wolf from LevelTen noted,“The deadline means pool of tax-credit-eligible projects is drying up.” With no more loopholes,market bracing for PPA price surge. “Supply shrinking weekly, prices expected to keep rising into 2028 and beyond,” she added.
Locking a tax-credit-eligible project now lets buyers secure good terms reflecting today's conditions, before prices jump. Demand grows more complex with data centers and AI tech needing lots of new power.
Time's running out. Clean energy buyers must act fast to close deals or face rising costs soon. Renewable energy world changing quickly…those who hesitate might lose out.
