09/26/2026
6 gigawatts of new generating capacity is expected to come online in the U.S. this year. Solar ☀️ , wind 🍃 , and battery storage🔋 account for 93% of it.
That is a lot of construction. And these are not simple builds: long timelines, layered contractors, public permitting, imported equipment, and obligations that outlive the construction phase by decades. 🗓️
Every layer is a promise someone has to keep. That is what surety bonds are for. 📜
Three things worth knowing:
1️⃣ There is already a bond for nearly every stage. Performance and payment bonds for installation. Right-of-way bonds for work crossing public property. Customs bonds for imported equipment. O&M bonds once the facility starts generating. And decommissioning bonds at the end of life, which can stay outstanding for twenty years or more.
That last category is growing fast. As of late 2023, 32 states had enacted solar decommissioning policies, up from about 8 in 2021. Most require financial assurance behind the plan.
2️⃣ A bond is a prequalification, not just paper. Before a surety bonds a contractor, it underwrites them: financials, working capital, bonding capacity, project history. A contractor who can get bonded at your project's size has already cleared a real financial review by a party with money at risk. One who cannot has told you something too.
3️⃣ Claims get investigated. A letter of credit is a demand instrument. Documents get presented, the bank pays. A surety bond is a secondary obligation, so the surety investigates before paying and can raise defenses. Slower, yes. But a performing contractor is not exposed to an instant draw over a disputed default, and someone with technical resources actually looks at what went wrong.
If you are developing, financing, or building in this space, the question is not just whether you are bonded. It is whether your surety knows renewable energy specifically, and whether they can stand behind the paper when it matters. 🛡️
Full breakdown, with sources 👇
https://spearpointagency.com/surety-bonds-and-renewable-energy-three-reasons-they-belong-in-your-risk-plan
Solar farms, wind installations, and hydrogen facilities are no longer niche projects. They are large, capital-intensive builds with long timelines, multiple contractors, and public money involved. And like any project of that size, they carry a specific kind of risk: the risk that somebody in the c...
