Wind turbines are visible along Route 176 as vehicles travel eastbound in Andrews, Texas. Associated Press, Feb. 24, 2025

Solar and wind energy companies are betting on a novel form of insurance to protect their assets against wild and volatile weather — the very type of climate risk they were set up to fight.

Renewable power projects can lose substantial revenue if the wind fails to blow, if clouds block the sun, or when a hurricane slams into expensive infrastructure. To protect against such climate-induced losses, many owners are turning to parametric insurance, a product providing rapid compensation when certain weather-related metrics are met. The downside is that if the predefined trigger is missed by even a tiny amount, there is no payout. And the money that’s paid may end up cov

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