Solar insurance market to reach $13.8b by 2034

Demand for such policies has grown amidst more frequent extreme weather events.

The global solar plant insurance sector is slated for a compound annual growth rate of 9.4% from 2025 to 2034, according to market.us.

Last year, the market was valued at $5.6b. The industry is slated to record $6.2b this year and will reach $13.8b in 2034.

Demand for such policies has grown amidst more frequent extreme weather events, manufacturing defects and installation-related liabilities.

Premiums in the solar insurance market have risen significantly, particularly in catastrophe-prone areas where property insurance costs have climbed 37%. 

General liability premiums have also increased between 5% and 15% depending on installation type.

Property damage and business interruption coverage made up 41.2% of the market, whilst utility-scale independent power producers and owners accounted for 48.4% of insured demand. 

Generative AI is reshaping solar insurance underwriting. About 38% of insurers in the sector now use AI to model weather and equipment risks in real time, improving pricing accuracy and speeding up claims processing. 

Nearly 41% plan to expand AI applications for underwriting and advisory purposes in the next year.