Published on 13 January 2026

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RENEWABLE ENERGY MARKET UPDATE H1 2026

Published on 13 January 2026

Renewable energy insurance outlook for 2026 remains positive with continued rate reductions and expanded capacity. Solar portfolios benefit from lower 2025 US severe convective storm losses, while BESS sees 20-40% market corrections. China's dominance in manufacturing drives global premium flows and competition among carriers.

Despite ongoing challenges such as technology supply chain delays, planning deferrals, and more stringent financing considerations, the renewable energy sector is advancing at a remarkable pace. China continues to lead the world, both in manufacturing — producing 92% of global solar modules and 82% of wind turbines — and in setting ambitious targets for installed clean energy capacity. This progress is generating significant interest and premium flows within the global insurance market, as insurers seek to support these world-leading initiatives.

The influx of new carriers into the renewable energy insurance space during 2024 and 2025 has brought increased capacity and greater competition. Most insurers are either increasing their participation or are now able to offer lead quotations. This development ensures clients have more choice, fostering a fairer and more competitive marketplace for new business opportunities. Portfolios that benefit from a diverse mix of technologies, asset ages, and geographic locations are seeing the largest premium rate reductions as a result.

The solar sector in the United States experienced lower than expected severe convective storm (SCS) losses in 2025 compared to the previous year. This has encouraged insurers to compete more actively, even for risks exposed to natural catastrophe perils. London market insurers, who typically write 60%-70% of their premiums from North American insureds, are likely to continue expanding sub-limits for SCS and other catastrophe exposures in line with probable maximum losses (PMLs).

Innovations in risk mitigation technology - such as hail stow systems and advanced racking and module testing - are also influencing premium rates. Where such measures are implemented, catastrophe loadings are likely to be revised, broadening the range of premium rates available for the diverse spread of US assets.

Onshore wind projects now commonly feature turbines in the 8MW to 10MW range. While premium rates fell by 5%-15% during 2025, the introduction of new technologies has tempered further reductions, providing a stabilising effect. Deductibles are being set within a broad range, depending on the size of wind turbine generator (WTG) models, now spanning from 0.5MW to 10MW. We anticipate a rise in the number of options requested, with pricing differentials reflecting insurer risk perceptions, lender requirements, and insureds' sensitivity to price versus coverage.

Battery Energy Storage Systems (BESS) saw the most significant rate reductions in 2025, driven by improved technology performance and reduced fire risks. This competitive environment resulted in 'market corrections' of 20%-40%, with future reductions expected to stabilise and align with those seen in wind and solar, typically in the range of 5%-25%.

Floating offshore wind technology is transitioning seamlessly from demonstration to commercial scale, with the insurance market increasingly able to support these projects, provided that project certification milestones are achieved. Forward planning for in situ maintenance and tow-to-port provisions remains essential to reducing insurance costs and demonstrating robust risk mitigation, both critical factors for insurer confidence.

In summary, the renewable energy insurance market is evolving with increased competition, innovative technologies, and a more diverse risk landscape, all of which are contributing to continued rate reductions and enhanced coverage options for clients in 2026.