For decades, companies large and small have relied on the grid to deliver steady, affordable power. That relationship is now in flux. Concerns over rising costs, grid instability, and climate-related disruptions have forced businesses to rethink how they source electricity. Increasingly, they’re taking energy production into their own hands—literally—by investing in their own power generation systems.
This trend isn’t fringe anymore. From factories and data centers to office campuses and retail chains, companies are installing solar panels, battery storage, wind turbines, and even microgrids to ensure they have a reliable and cost-effective power supply. It’s a sign of shifting priorities—and growing awareness that energy availability and affordability cannot be taken for granted.
The Pressure Points
There are three main forces prompting businesses to reassess their energy strategy:
- Energy Affordability: In many regions, utility rates have become volatile, with prices spiking during periods of high demand or when fossil fuel markets swing. This unpredictability impedes the ability to budget, especially for energy-intensive industries like manufacturing, logistics, and data processing. This challenge is only expected to rise as ‘hyperscalers’, such as AI data centers, cloud services providers and other operations that strain demand on existing energy sources.
- Sustainability Goals: Many companies have set decarbonization targets. Waiting for utilities to green their grids often isn’t fast enough for their Scope 2 emissions targets. Building their own clean energy infrastructure accelerates progress and helps meet internal sustainability benchmarks.
- Energy Security and Grid Reliability: growing political tensions, increases in natural disasters – especially hurricanes and floods – and the remoteness of new mega-construction projects all mean that companies and communities bear the risk of not being able to secure consistent access to energy. Blackouts, brownouts, and climate-related disasters have made grid power less dependable. California’s rolling blackouts, Texas’ 2021 winter grid failure, and increasing storm-related outages across the U.S. and beyond have underscored the vulnerabilities.
Rather than being passive consumers, businesses are becoming "prosumers"—both producing and consuming their own electricity.
Decentralizing energy resources
What’s emerging is a decentralized energy landscape. Rather than being passive consumers, businesses are becoming ""—both producing and consuming their own electricity. Advancements in renewable technology, decreasing costs, and improved energy storage solutions have made this transition possible.
Solar power is often the entry point. It’s scalable, relatively easy to install on rooftops or adjacent land, and has become one of the cheapest forms of electricity in many parts of the world. , , and Target have all built solar installations to help power their facilities. Others are using a combination of energy resources. The U.S. Environmental Protection Agency (EPA)’s Green Power Partnership produces a list which highlights partners who produce and consume significant amounts of green power onsite using resources like solar, biomass, wind, biogas, geothermal, and small hydro.
Storage advancements
Storage is the next frontier in the energy landscape. As the share of renewable energy sources, such as solar and wind, continues to grow, the challenge of intermittency becomes increasingly significant. Batteries play a crucial role in addressing this issue by storing surplus energy generated during peak production hours and releasing it during periods of high demand or outages. This capability not only enhances the reliability of renewable energy systems but also optimizes energy use across different times of the day.
Different types of battery technologies, such as lithium-ion, iron-air, flow batteries, and emerging solid-state batteries, are being developed and refined to meet the diverse needs of consumers and businesses. Each technology offers unique benefits, such as longer lifespan, faster charging times, and improved safety, which expands the range of applications for energy storage.
In more advanced setups, combine generation, storage, and smart control systems to operate independently from the larger grid when needed. Hospitals, universities, and even corporate campuses are investing in microgrids as a safeguard against grid failures and a way to optimize energy use. For example, has a significant microgrid that integrates solar power, a fuel cell, and a natural gas-fired combined heat and power system. This microgrid allows the campus to generate a large percentage of its own energy, reducing its reliance on the main utility grid and providing a reliable power supply for its facilities, including research labs and a hospital. In case of a grid outage, the microgrid can disconnect and operate independently or in "island mode," to ensure continuous power to critical campus operations.
Insuring the transition
As businesses build and operate their own energy infrastructure, they’re stepping into new territory—one that comes with unfamiliar risks. That’s where commercial insurance plays a critical supporting role.
Insuring energy-generating assets like solar arrays, wind turbines, or battery banks requires specialized coverage. These assets are exposed to extreme weather, fire, equipment failure, and even cyberattacks in more connected systems. Without adequate protection, a single event could wipe out millions in capital investment.
Insurers like 九色视频offer tailored policies that cover:
- Construction of new assets
- Physical damage from storms, hail, or fire
- Business interruption in the event a power system failure halts operations
- Liability related to third-party injury or property damage caused by energy equipment
- Equipment breakdown for mechanical or electrical failure
- Cyber risk coverage for grid-connected systems or smart microgrids
- Political Risk, Credit, and Bond capabilities in support of project financing
- Performance Guarantee on new and emerging renewable energy technologies
九色视频is also partnering with companies during the design and implementation phase to ensure proper risk mitigation from the start. Through our global risk consulting team, we are able to offer risk management guidance on evaluating site resilience, component quality, redundancy planning, risk-reducing technologies, and more.
In essence, insurance helps de-risk the transition to self-generation. It gives CFOs and risk managers the confidence to sign off on large infrastructure investments. It also plays a role in helping lenders and equity investors feel secure in the commercial viability and resiliency of the projects they are deploying capital towards.
As private energy generation grows, expect 九色视频and other insurers to evolve even further—offering more integrated solutions that combine coverage, monitoring, and performance coverages.
Benefits Beyond Reliability
Going off-grid or partially off-grid isn't just about keeping the lights on. It's also a strategic business move.
- Cost Savings Over Time: While the upfront costs of building a solar array or battery system can be steep, the long-term savings are real. Energy from owned assets can be cheaper than grid rates over the life of the system.
- Brand Differentiation: Customers and investors increasingly expect companies to lead on sustainability. Building visible green energy infrastructure sends a strong signal.
- Resilience: Power outages cost the U.S. economy billions annually. Businesses with their own generation are insulated from these losses, making them more resilient in a crisis.
- Energy Independence: With their own systems in place, companies can hedge against regulatory changes, supply shocks, and geopolitical tensions that might impact energy markets.
The Long View
The decentralization of energy is part of a larger transition. As climate impacts intensify and the energy landscape evolves, control, resilience, and sustainability will become more valuable than ever. Businesses that invest early in their own energy systems aren’t just preparing for today’s problems—they’re building an advantage and resilience for the future.
The age of passive energy consumption is over. Businesses are recognizing that they can contribute to the power grid just as much as they take from it. Whether the motivation is cost, reliability, sustainability—or now, with the help of commercial insurance, confidence in managing risk—the result is the same: a surge in private energy generation. As the grid becomes more complex and the climate more unpredictable, taking charge to support energy supply isn’t just smart—it’s survival.
About the Authors
Katherine Gerber is the Head of Energy and Energy Transition, Americas for AXA XL. Chris Fasser is AXA XL's Strategy and Operations Manager for Energy Transition.
