In 2023, the typical length of Power Purchase Agreements (PPAs) for Solar PV energy in the US was approximately 26 years. Forecasts indicate a steady increase, reaching 30 years by 2028. The percent increase from 2024 to 2025 is approximately 3.7%, with no change in 2026, followed by a 3.6% growth in 2027 and 3.4% in 2028. The compound annual growth rate (CAGR) over this period is estimated at 2.86%, reflecting a gradual elongation trend of PPA durations for solar PV.
Future trends to watch for include:
- Regulatory changes that might incentivize longer PPAs.
- Technological advancements reducing costs and driving more stable, long-term agreements.
- Market dynamics focusing on sustainable and renewable energy investments.
- Potential impacts of policy shifts regarding renewable energy credits and financial incentives.
