Wind energy costs surge under Trump policies, raising concerns over affordability

• Wind power purchase agreement (PPA) prices in North America have risen nearly 14 percent since 2024, outpacing solar energy cost increases, driven by new tariffs, permitting hurdles and financing challenges.
• Additional Trump administration tariffs are expected to push wind energy prices another 10 to 15 percent higher, further straining household and business budgets.
• The rush to meet federal tax credit deadlines has tightened supply and increased financing costs, contributing to higher PPA prices.
• Restrictive federal permitting policies for wind energy projects add to the financial burden and reduce the availability of clean energy projects.
• The rising costs of wind energy, coupled with the likelihood of further increases, raise urgent questions about the affordability of America’s energy transition for consumers.

Wind power purchase agreement (PPA) prices in North America have risen nearly 14 percent since 2024, outpacing solar energy cost increases, as new tariffs, permitting hurdles and financing challenges drive up expenses for developers and consumers.

Analysts from LevelTen Energy and Trio warn that additional Trump administration tariffs – set to take effect soon – could push prices another 10 percent to 15 percent higher, compounding financial strain on households and businesses already facing steep energy bills.

With demand for clean energy surging ahead of federal tax credit deadlines, experts say prices are unlikely to drop anytime soon – raising urgent questions about affordability in America’s energy transition.

“A wind PPA is a financial instrument that allows a company or entity to purchase wind-generated electricity at a predetermined price over a specified period, typically ranging from 10 to 20 years,” BrightU.AI‘s Enoch explains. “Under a PPA, the wind farm developer or operator installs and maintains the wind turbines and the buyer agrees to purchase the generated electricity at a fixed or indexed rate, often lower than the market price of electricity from traditional sources.”

According to LevelTen Energy’s PPA marketplace data, wind energy costs rose nearly five percent from Q2 to Q3 2025, while solar increased four percent. Since Q3 2024, wind PPAs have climbed over $9 per megawatt?hour (MWh), far outpacing solar’s $3.19/MWh increase.

Rob Collier, LevelTen Energy’s vice president, attributes much of the spike to tariffs on imported materials like metals and wind turbine components. “What we’re hearing from developers is it’s the tariffs,” Collier said. “That is what is creating uncertainty and upward pressure on pricing.”

However, Joey Lange, Trio’s senior managing director for clean energy supply, argues financing costs – driven by a rush to meet federal tax credit deadlines – are the primary culprit. “The crush of developers trying to bring projects to market… has strained U.S. financiers,” Lange said.

OBBBA deadlines and corporate demand tighten supply

The One Big Beautiful Bill Act (OBBBA) has intensified competition for tax credit-eligible projects, with many developers sidelining ventures unlikely to meet deadlines. Collier noted this has reduced available clean energy projects even as corporate buyers accelerate procurement.

Wind energy faces additional hurdles from restrictive federal permitting policies, while corporate buyers favor it for 24/7 clean energy goals. Lange cautioned that upcoming tariffs – not yet factored into contracts – could push PPA prices another 10 to 15 percent higher.

Despite rising costs, Lange noted PPAs remain valuable relative to wholesale energy prices. However, neither he nor Collier expects relief soon.

“It’s hard to envision a world where prices are going to decrease,” Collier said. The key question is whether hikes will be gradual or sudden as OBBBA and tariff policies fully take effect.

As wind energy costs outpace solar, the financial burden on consumers grows – with further increases looming. The debate over tariffs, financing and permitting underscores the fragile balance between energy transition goals and economic reality. With affordability at stake, policymakers and industry leaders face mounting pressure to address these challenges before energy bills spiral out of reach for everyday Americans.

Watch this video about the massive quantity of energy and resources required to construct a single wind turbine.

This video is from The Prisoner channel on Brighteon.com.

Sources include:

UtilityDive.com

BrightU.ai

Brighteon.com