President Donald Trump’s escalating campaign against renewable energy is beginning to ripple through the insurance sector, raising new concerns for carriers and brokers tied to solar power.
The administration’s sweeping rollback of federal climate policies, including cancelling the EPA’s $7-billion Solar for All program, eliminating tax credits, and imposing tariffs on imported panels and components, has already slowed investment across the industry. Investments in renewables fell by $20.5 billion, or 36%, in the first half of 2025 from the prior six months, according to BloombergNEF.
At least one expert believes the pressure will not stop with manufacturers and installers; it will be felt in the underwriting markets that enable projects to move forward.
“For consumers, any increase in supply costs or materials increases the overall cost of putting solar panels on your roof. So, consumers are probably seeing a bigger impact,” said Canaan Crouch (pictured), executive vice president and environmental broker at Jencap Specialty Insurance Services.
“On top of that, there are changes like in California with net energy metering; I think that has probably cooled demand for solar more than anything.”
The renewable energy sector had enjoyed strong growth through 2022 and 2023, boosted by Biden-era subsidies and investor enthusiasm. But according to Crouch, by early 2024, interest began to slow.
Rising costs are a major factor. Trump’s tariffs on solar panels and related equipment, enacted only a few months ago, have exacerbated inflationary pressures already weighing on the construction sector.
The turbulence is beginning to reshape underwriting appetites, particularly for residential projects. Crouch said insurers have grown wary of covering installations on individual homes.
“What we’re seeing is that placement is harder, especially for residential solar installation,” he said. “Residential claims tend to cost more. You’re installing them on pitched roofs, you’re drilling into wood, and that creates more potential for issues.”
Only a handful of carriers remain willing to back single-family home projects, he added.
The pullback reflects both the technical challenges of residential installations and the higher frequency and severity of claims compared with utility-scale projects. With fewer carriers competing, brokers face a more challenging task in finding coverage for clients in this space.
Despite the mounting headwinds, insurance pricing has remained relatively stable. But Crouch warned that the status quo is unlikely to last. “If I had to read the tea leaves, there’s got to be an increase in price,” he said.
Higher insurance premiums would add yet another cost burden to developers and contractors already grappling with tariffs, reduced subsidies, and volatile demand.
Trump’s second-term policy blitz has rattled the entire renewables sector. Beyond tariffs, the administration has rescinded permits for major wind and solar projects, halted offshore leasing, and rolled back programs that directed billions toward community energy initiatives.
Analysts estimate that more than $22 billion worth of clean-energy projects have been cancelled or delayed since January, along with more than 16,000 jobs lost.
Crouch sees these measures as part of a broader reallocation of resources by the current administration. Yet even as short-term pressures mount, he’s cautiously optimistic about the sector’s future.
“We need energy, and it has to be energy that’s produced locally. With transmission, you lose a large percentage,” Crouch said. “So, the efficiency of delivering energy close to where it’s consumed is critical. I think you’ll see that the importance of solar as a source of energy will keep increasing.”
For brokers serving clients in the solar industry, it’s crucial to consider the broader context.
“Stay informed about what’s happening with subsidies, tariffs, inflationary pressures, because those are the factors that directly shape the risks we’re insuring,” Crouch said.
