“Experience a World of Difference”
Renewable
Energy
THIS DECADE’S HOTTEST
INSURANCE MARKET
WHITE PAPER
JUL 2016
Why Renewable Energy May
Be This Decade’s Hottest
Insurance Market
The Port of Los Angeles, the busiest container port in the country, recently
committed to transition a 40-acre marine terminal to solar power. The project is
partially funded by a $14.5 million grant from the California Air Resources Board.
When completed, it is projected to reduce greenhouse gas emissions by 3,200
tons per year.1
This is part of a bigger trend. Global companies are investing more than ever
in wind, solar, and other forms of renewable energy to gain federal tax credits,
grants, and other incentives. Some examples include:
 Google
The company announced at the beginning of 2015 that it would invest over
$300 million to construct approximately 25,000 rooftop power plants. In total,
Google has invested over $1.8 billion in renewable energy, including both
wind and solar.2
 Amazon
The giant online retailer claims it already uses renewable energy for 25% of
its energy needs as of April 2015, and plans to boost that percentage to 40%
by the end of 2016. To that end, Amazon is constructing an 80-megawatt
solar farm projected to produce about 170,000 megawatt-hours of solar
energy per year—that’s enough to keep the lights on all year for 15,000
homes—as well as several wind farms.3
 Apple
Apple claimed in March 2016 that 93% of its facilities worldwide rely on
renewable energy.4 A few months later, it announced the creation of an
entirely distinct energy company, Apple Energy LLC, that sells the excess
energy generated at Apple solar farms to the grid.5
2
Copyright © 2016. Worldwide Facilities, LLC. All Rights Reserved.
These are just a few of innumerable examples of large global companies, including
Ikea, General Motors, Wal-Mart, HP, and Procter & Gamble, that have made highprofile commitments to renewable energy in the past few years.
Why Renewables?
It Comes Down to Money.
While the publicity boost of a commitment to sustainable energy is a big plus,
companies aren’t making these investments for that reason alone. Tax breaks
and other government incentives have played a large role in driving corporate
commitment to clean energy.
Many states and municipalities offer local grants and incentives to companies
looking to invest in renewables in their area, and these can be very high-profile.
For instance, in 2015, the Arizona House of Representatives approved a bill
extending over $5 million in tax credits to encourage Apple to build a $2 billion
data center in the state, run entirely on renewable energy.6
In addition, the federal government recently extended the Production Tax Credit
(PTC) and Investment Tax Credit (ITC) to encourage investment in wind and solar
energy. The ITC, which provides a 30% tax credit to companies investing in solar
energy, will now continue until 2019.
The PTC, which provides tax rebates for geothermal, wind, closed-loop biomass
and other technologies, will apply retroactively to activities in 2015 and will now
extend to 2019.7 Bloomberg New Energy Finance predicts that these changes
could drive as much as $73 billion in new investments.8
These tax breaks, as well as improved technology and scalability, have had a
measurable impact on patterns of investment already. Despite falling fossil fuel
prices for the past two years, investment in renewable energy has been outpacing
traditional energy by a factor of two to one.9
3
Copyright © 2016. Worldwide Facilities, LLC. All Rights Reserved.
Big Opportunities for Retail
Insurance Agents
This increasing activity points to huge opportunities for retail
insurance agents looking to target contractors and operators in
the wind, solar, biomass, geothermal, and hydroelectric spaces.
Few know more about the high potential of this market than Brian Vassallo and
Cade Felker, Senior Vice Presidents at Worldwide Facilities, LLC, a national
wholesale brokerage and managing general agent. Both are recognized authorities
in the renewable energy sector, with a record of success managing the industry’s
most challenging risks.
We sat down with Felker and Vassallo to get their take on the growing
opportunities in this sector.
 What is driving the continued growth in renewable energy?
Vassallo: “There is certainly a substantial social welfare component.
Continued investment in clean energy contributes to a climate-safe future and
lessens fossil fuel reliance. But it’s much bigger than that. Renewable energy
projects fuel economic growth, help meet the needs of a growing population,
and create new employment opportunities. Projections are showing up to 24.4
million new jobs will be created in this space by 2030.”
 What makes you so certain of the long-term viability of this
industry?
Felker: “The government believes investing in renewable energy will increase
global GDP between $700 billion and $1.3 trillion by 2030, so it has a vested
interest in continuing to extend tax credits and funding to companies making
that investment.”
4
Copyright © 2016. Worldwide Facilities, LLC. All Rights Reserved.
 What do retail insurance agents need to know about activity in
this space?
Vassallo: “The growth in this sector is not just about the ‘feel-good’ factor or
reducing dependence on fossil fuels. There’s big money in the form of federal
grants and tax credits for companies investing in renewables, and it’s growing—
so the number of contractors and operators in this space will continue to grow
as well.”
Worldwide Facilities is investing substantial resources into
establishing a robust platform in this crucial industry vertical—built
on a sound understanding of the industry and its potential for
growth.
5
Copyright © 2016. Worldwide Facilities, LLC. All Rights Reserved.
Notes
“Pasha, Port of Los Angeles and California Air Resources Board Partner on
Green Omni Terminal Demonstration Project.” Business Wire: http://www.
businesswire.com/news/home/20160526005281/en/Pasha-Port-Los-AngelesCalifornia-Air-Resources (Accessed June 22, 2016)
1
Martin, Christopher. “Google is Making its Biggest Ever Bet on Renewable
Energy.” Bloomberg, February 26, 2015.
2
AWS & Sustainability: http://aws.amazon.com/about-aws/sustainability/
(Accessed June 22, 2016).
3
Toor, Amar. “93% of Apple’s Facilities Run on Renewable Energy.” The Verge,
March 21, 2016.
4
Weintraub, Seth. “Apple Has Just Become an Energy Company, Looks to Sell
Excess Electricity Into the Grid and Maybe More.” 9to5Mac, June 9, 2016.
5
Amorosi, Drew. “Apple Closer to Arizona Data Center Tax Breaks.”
DatacenterDynamics, March 2, 2015.
6
Nelder, Chris & Silberg, Mark. “Congress Extends the Renewable Investment Tax
Credit: What Now.” Greenbiz, December 28, 2015.
7
Randall, Tom. “What Just Happened in Solar is a Bigger Deal Than Oil Exports.”
Bloomberg, December 17, 2015.
8
Randall, Tom. “Wind and Solar are Crushing Fossil Fuels.” Bloomberg, April 6,
2016.
9
6
Copyright © 2016. Worldwide Facilities, LLC. All Rights Reserved.
About Worldwide Facilities, LLC
Worldwide Facilities, LLC is a national wholesale broker and managing general
agent providing services to insurance agents and brokers. In business since 1970,
our seasoned team of brokers and underwriters offers specialized knowledge of
renewable energy coverage, broad access to specialty markets, and extensive
expertise in placing challenging insurance risks.
We offer unmatched tools, resources, and strategies to help insurance agents and
brokers expand their corporate accounts to include renewable energy insurance—
including training materials and marketing support.
Take advantage of our expertise in placing renewable energy
today—contact Brian Vassallo in our South Bay - LA office at
bv@wwfi.com or (310) 872-7743 to schedule a conversation.
Disclaimer
This whitepaper is Copyright © 2016 by Worldwide Facilities, LLC. It may be freely redistributed in
its entirety provided that this copyright notice is not removed. It may not be sold for profit or used
in commercial documents without the written permission of the copyright holder. This whitepaper
is provided “as is” without any express or implied warranty.
This whitepaper is for educational purposes only and does not purport to provide legal advice. If
you require legal advice, you should consult with an attorney. The information provided here is for
reference use only and does not constitute the rendering of legal, financial, or other professional
advice or recommendations by Worldwide Facilities. The listing of an organization or website
does not imply any sort of endorsement and Worldwide Facilities takes no responsibility for the
products, tools, and Internet sites listed.
7
Copyright © 2016. Worldwide Facilities, LLC. All Rights Reserved.
HEADQUARTERS
725 S. Figueroa Street
19th Floor
Los Angeles, CA 90017
(213) 236-4500
Visit wwfi.com for a full list of offices throughout the country.
“Experience a World of Difference”