PJM on Feb. 20 filed with FERC to establish a price cap of approximately $325/MW-day in unforced capacity and a price floor of approximately $175/MW-day, both in unforced capacity (UCAP) for all capacity auctions for the 2026/2027 and 2027/2028 delivery years.
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The Illinois Power Agency (IPA) has released the 2025-2026 Renewable Energy Credit (REC) prices for the Illinois Solar for All program. Interested parties can view the 2025
Further, PJM has agreed in principle to implement a price cap and a price floor of $325/MW-day and $175/MW-day, respectively, for the 2025/2026 and 2026/2027 delivery years.
However, price fluctuations in the photovoltaic module market remain a critical factor influencing the industry''s growth. This article will analyze the price trends of photovoltaic
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This approach is intended to allow any input parameter in the model to be varied by up to a factor of two (up or down) to assess its impact on cost. All costs reported are represented two ways:
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In conclusion, photovoltaic modules prices are expected to remain in a low adjustment phase during 2025-2026. However, the likelihood of significant price drops is minimal, and upward pressure on prices persists.
The capacity auction for delivery year 2027/2028 is delayed to December 2025. Further, PJM has agreed in principle to implement a price cap and a price floor of $325/MW-day and $175/MW-day, respectively, for the 2025/2026 and 2026/2027 delivery years.
In the most recent auction for the 2025-2026 capacity market period, capacity prices surged to nearly ten times higher than the previous year. The price jumped from about $29 per megawatt-day to nearly $270 per megawatt-day – an unprecedented increase.
However, as the primary cost component of photovoltaic modules, the price of solar cells plays a decisive role in module pricing. Due to the oversupply of polysilicon in earlier periods, prices have been under sustained pressure since 2023, even falling below cost levels in the first half of 2024.
However, the likelihood of significant price drops is minimal, and upward pressure on prices persists. With capacity adjustments, market clearing, and advancements in technological innovation, the supply-demand dynamics are anticipated to improve by late 2025 or early 2026, potentially marking a turning point for module prices.
However, there’s additional complexity: Due to delays in PJM’s capacity auctions, the capacity price for the June 2026–May 2027 period hasn’t yet been set. Utilities have temporarily relied on interim “capacity proxy prices” in their procurement auctions.
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