To ensure sustainability of the future power grid, the rate of expansion of distributed renewable energy resources (DRER) has introduced operational challenges. These includes managing transmission constraints with DRER power injection, dispatching DRER efficiently, managing system frequency and ensuring sufficient reactive power for voltage support. Coupled with the intensification of wildfires, power infrastructure across the United States faces challenges to minimize the impact to maintain system reliability and resiliency. This research embarks on a comprehensive evaluation, beginning with an in-depth historical analysis to delineate regions most susceptible to wildfires. Utilizing a multidimensional approach, the study assesses wildfire-induced risks to power grids, by integrating historical wildfire occurrences, real-time wildfire proximities, Moderate Resolution Imaging Spectroradiometer (MODIS) derived vegetation metrics, and system parameters, by employing Principal Component Analysis (PCA) based optimal weights, leading to the formulation of a novel risk factor model. This risk factor has the potential to be the key to ensuring the resilience of a renewable-rich smart grid when faced with a severe weather event. Our model’s applicability was further verified through an empirical assessment, selecting representative networks from diverse regions, providing insights into the geographical variability of risk factors. Ultimately, this study offers stakeholders and policymakers a comprehensive tool-set, empowering decisions regarding infrastructure investments, grid reinforcements, and strategic power rerouting to ensure consistent energy delivery using risk assessment against wildfire.