Corporate PPAs: Virtual vs Physical in 2026
By Sustainability Awakening • Dr. Ahmad Mahmood
PPA prices, Q3 2026
What developers offer
Solar (P25)$64.23/MWh
Wind (P25)$68.27/MWh
Source: LevelTen Energy
Why solar rose
Tariffs bite
+4.9%
rise in solar PPA offers in Q3 as Section 232 tariffs hit panels and cells.
Source: LevelTen Energy
2025 deals
Big Tech leads
Clean power signed55.9 GW
Change vs 2024−10%
Big Tech share49%
Source: BloombergNEF
Virtual PPA
A hedge, not a supply
You keep your utility. If market prices beat the strike you get paid; if they fall below it, you pay.
Other options
Physical and on-site
Physical PPAPower delivered
On-site solar10–30% of load
VPPACash settled
Cost to build
LCOE ranges, $/MWh
Utility solar$40–98
Onshore wind$37–99
C&I solar$88–197
Source: Lazard 2026
Same load, two deals
Structure matters
Physical PPA, year 1+$319k
Virtual PPA, year 1−$3.15M
Source: our PPA modeler, $55 hub
Scope 2 rules
Two methods proposed
The GHG Protocol is developing two market-based methods: one with hourly matching, one keeping today’s rules.
Timing
Windows are closing
Credits if started by4 Jul 2026
Otherwise in service byend-2027
SBTi legacy dealsbefore 1 Feb 2027
Source: Sidley; LevelTen