It hasn’t been the easiest time for the renewable energy industry. Numerous alternative-energy companies have filed for bankruptcy, from federal loan backed solar cell manufacturers to small scale wind and solar manufacturers. The American Wind Energy Association says the U.S. wind industry employment is on track to be cut in half in 2013.
Renewable energy has come under some flak this year in terms of its future. Natural gas prices have dropped significantly. New technology now allows us to access resources that were previously too economically costly to reach. Many jurisdictions have reduced or even eliminated subsidies for renewable power, and this has consequently slowed the expansion of products. In addition there has been significant opposition to the construction of wind turbines in many areas. All of these reasons combined have led to doubts on the future of renewable energy.
Yet a news analysis by Deloitte points to other factors. In 2004, $33 billion was invested in renewable energy (2004 was the first year investments began being tracked in a meaningful way). In 2012, over $210 billion was invested, a huge increase, according to Bloomberg New Energy Finance. In addition, there has been a significant industry shift towards smaller-scale projects such as rooftop solar power. And residential energy use is expected to increase by 25 percent.
As energy dealers continue to explore new resources, the need for a reliable, tailor-made insurance and risk management program in the renewable energy sector is critical. At Sinclair Risk & Financial Management, we offer solutions to the challenges faced by this industry, such as exposures related to general operational issues, construction of energy projects, and reliability of power sources and facility equipment such as wind and solar power projects. Sinclair specializes in Renewable Energy Insurance, Fuel Energy Insurance, & Liquid Petroleum Gas (LPG) Insurance. Contact us today for more information about our energy dealers insurance programs – (877) 602-2305