President Donald Trump’s strong stance against renewable energy is now affecting the insurance industry, especially those involved with solar power projects. His administration has rolled back many federal climate initiatives, including scrapping the Environmental Protection Agency’s $7 billion Solar for All program, cutting tax credits, and placing tariffs on imported solar panels and parts. These moves have slowed investment in renewable energy by 36% in the first half of 2025 compared to the previous six months, according to BloombergNEF.
Experts say this pressure isn’t just hitting manufacturers and installers; it’s also influencing the insurance companies that support these projects. Canaan Crouch, executive vice president and environmental broker at Jencap Specialty Insurance Services, pointed out that higher costs for materials and supply are making solar installations more expensive for consumers. Changes to policies like California’s net energy metering have also reduced interest in solar energy.
The demand for residential solar panels has begun to weaken. The renewable energy sector had seen strong growth in 2022 and 2023, helped by subsidies and investor interest from the previous administration. But by early 2024, that enthusiasm started to fade. Trump’s tariffs, introduced recently, have added to inflation and construction cost pressures, which is making insurers more cautious about backing solar installations on homes.
Crouch explains that residential solar projects pose more risks than large-scale ones. Installing panels on pitched roofs and drilling into wood often leads to more claims. As a result, only a few insurance providers still cover single-family home solar projects, making it harder for brokers to find coverage.
Despite these challenges, insurance prices have stayed mostly steady for now. Still, experts expect that prices will rise soon, adding another cost for developers and contractors who are already dealing with tariffs, fewer subsidies, and uncertain demand.
The current administration’s policies have unsettled the entire renewable energy field. Besides tariffs, they have canceled permits for big wind and solar projects, stopped offshore leasing, and cut programs that funded community energy efforts. Since January, over $22 billion worth of clean energy projects have been canceled or delayed, and more than 16,000 jobs have been lost.
Crouch believes these changes are part of shifting priorities in how energy resources are managed. Still, he thinks solar power will remain important because it delivers energy locally and efficiently, reducing losses from long-distance transmission.
For brokers working with solar industry clients, staying up to date on subsidies, tariffs, and inflation is key. These factors affect the risks insurers cover and shape the future of solar energy projects in the market.