Renewable energy is growing in the U.S. In fact, wind and solar energy generated more electricity in the U.S. than coal for the first time ever in 2024.
Growth extends far beyond wind and solar, renewable energy insurance experts told Insurance Journal for this special report. There’s growing interest in nuclear energy, hydropower, and geothermal power. And then there’s the expanding industry of power storage to relieve pressure on U.S. power grids during heavy energy months.
One thing is clear: the need for power is growing, and so is the industry that works to protect renewable energy assets.
Fraser McLachlan, CEO of GCube and recently appointed chairman of the newly formed Tokio Marine GX (TMGX), expects significant investment in green energy as the transition to be green takes place across many classes of business and countries worldwide. The investment into green energy is expected to be about $15 trillion in the next 10 years, he said.
“There absolutely is an opportunity to drive this green transition and help this green transition along the way and make some premium out of it, as well,” he said. Launched in May, TMGX, an abbreviation of green transformation, is Tokio Marine Group’s response to the increasing demand for insurance that is critical to transitioning to a more decarbonized, sustainable society.
The primary driver of “green transformation” is renewable energy. Renewables are growing worldwide, and in the U.S., renewable energy outpaced other energy generation sources in 2024, collectively accounting for about 90% of the United States’ new installed capacity, according to the World Resources Institute.
“With the new projects online, renewables (including wind, solar, geothermal, and hydropower) and battery storage now make up 30% of the country’s large-scale power generating capacity,” wrote WRI’s energy specialists Lori Bird, Andrew Light, and Ian Goldsmith in a February 21, 2025, article. “In 2024, all carbon free electricity sources, including nuclear, supplied nearly 44% of electricity, while renewables, including small-scale solar, supplied nearly 25%.”
There are challenges as well as opportunities when it comes to insuring the fast-changing renewable energy world.
One challenge is keeping up with emerging technologies as the renewable energy sector continues to divest in various segments, McLachlan said. That’s where green energy insurance specialists can help, he said. “Things like hydrogen, small-medium nuclear reactors, new types of solar, new types of electric vehicles–there’s a whole bunch of stuff that is going on that is really not being catered to at the moment by the more traditional insurance providers.”