The recent 2022 National Solar Jobs Census published in July 2023 by the Interstate Renewable Energy Council (IREC) is an in-depth analysis of the solar labor market and the latest trends affecting the burgeoning solar industry. The full report is available at http://www.SolarJobsCensus.org. We dove in to uncover the top 12 insights for solar professionals and job seekers whether you are progressing in your career or considering a new industry in your job search.
Overall, 2022 was a transition year for the solar workforce with various factors affecting the demand and supply for solar energy. This includes the notable passage of the Inflation Reduction Act with significant incentives for renewals, emergence out of the COVID supply chain issues, labor shortages driving challenges in hiring, and higher inflation affecting changes in consumer demand and investment decisions for new utility-grade projects. While 2022 itself was a bumpy year for the solar market, it set up 2023 and beyond for strong growth.
1) There are over half a million workers in the renewable energy generation space
There are 546,630 workers in renewable energy generation. Solar energy comprises over 60% of the renewable energy generation workforce with 346,143 employees working part-time or full-time. Wind energy generation follows with 125,580 workers and hydropower has 66,272 workers. Rounding out the renewable energy generation workforce, the US has a small geothermal industry employing just 8,635 workers.
In addition to the over half a million professionals working directly in renewable energy generation, there are 85,858 working on clean energy storage. The vast majority (75,923 of the 85,858) of storage workers are focused on production and development of clean battery storage. Energy storage is critical to the growing solar industry in order to develop efficient batteries at scale to power homes and businesses at night and also during non-performant solar conditions during the day.
2) Employers are struggling to hire today and we need more solar workers
Employers are really struggling to hire with 44% of solar employers finding it “very difficult” to find applicants, a record high since the Census began collecting data. This was driven by the nationwide labor shortage and lack of qualified applicants for open positions across solar positions.
While the hiring challenges slowed our progress in building new solar capacity in 2022, it can be great news as a qualified job applicant as demand continues to heat up in 2023. As you browse the available roles in the solar industry, make sure you check out the job requirements to see if you are a good fit. Also be aware that you may not have to check all job requirements as employers are struggling to find a perfect hire and may be more willing to invest in training and development of their workforce. Fortunately, there are also a number of upcoming incentives for employers and firms to train new hires in the solar industry. See our next major trend.
3) Workforce development is receiving increased investment
The majority of solar job openings require some experience dependent on the role. For example, even entry-level PV installers may need prior construction / handyman experience and solar electricians need to be a certified journeyman. In 2022, 43% of solar hires required a bachelor’s degree and 81% of new hires required some prior work experience.
However, there has also been an increase in partnerships and employer programs to train new hires. The IREC, the publisher of this job census, has created a National Clean Energy Workforce Alliance to help coordinate training and education to help fill the labor gaps.
The Inflation Reduction Act (IRA) also has a provision that will require a portion of all large scale utility deployments to be completed by apprentices. This begins in 2024, so keep your eyes out for opportunities as this will be a great entry point into a solar career. Note that currently a “solar installer” is not an approved occupation for the apprenticeship program at the federal level. This will apply to general laborers and mechanics spending on how the role is crafted, so you may see different titles that meet the federal requirements.
4) Installation and Project Development jobs comprise the majority of solar workers
Of the 263,883 workers who predominantly worked in solar in 2022, a total 171,558 employees are in installation and project development roles, 65% of total full-time workers in solar. Check out more information about Installation and Project Development on our main site.
5) Operations and Maintenance jobs will grow rapidly as more solar comes online
Today, there are only 16,585 workers in Operations and Maintenance. However, this grew by 32% with employers adding over 4,000 jobs in these areas. This is expected to rapidly grow as more solar installations come online and we need employees to ensure panels and energy systems remain performant. Repairing solar systems will also become increasingly common, demonstrating the importance of understanding how all systems function
6) Labor productivity has almost doubled in past 5 years… and jobs are still growing
The solar industry has become massively more efficient and has almost doubled the annual PV capacity as measured in GW (gigawatts, or one billion watts, which is enough to power over 10 million light bulbs) over from 10.7 GW in 2018 to 21.1 GW in 2022. Meanwhile, number of full-time (or close to full-time) workers has only increased from 244,340 to 263,883 workers, or ~8%. So, we’ve almost doubled the amount of capacity a single employee on average contributes to the solar industry.
We should expect to see continued productivity improvements over the coming years, but this is already factored in when employers and economists forecast the number of expected solar jobs, which will more than double in the coming years. As an employee in this space, it’s always important to stay up-to-date on the latest technology and improvements in the solar industry so that you can remain qualified in your position.
7) 2022 saw a slow down in total solar capacity, but this was for known reasons that we do not expect to continue into 2023 and beyond
The US solar industry declined as measured by new solar capacity coming online. This was a 12% decrease from 2021 in which we added a record 24.1 GW of PV capacity. 2022 only added 21.1 GW, but this was still 6% beyond the 2020 capacity, the prior record before 2021.
However, when dissecting this by sector, we see clear reasons for the overall decline. Utility-scale projects saw a 27% decrease year-over-year, adding 12.5 GW of capacity. Utility accounts for ~60% of the new capacity added, so we would have seen another year-over-year increase without this setback. The primary reason for the decline in utility installations was the supply chain issues with international tariffs added to solar cells and modules. While the government reversed its decision in June 2022, it had already forced multiple companies and utilities to delay or cancel planned projects that were no longer profitable. As the U.S. reinvests in onshore manufacturing, we should expect to see a more competitive domestic manufacturing industry and fewer disruptions due to the supply chain.
On the other hand, residential solar saw a huge 40% year-over increase in capacity, adding 5.9 GW. Residential employs the majority of the workforce and this growth is expected to continue. A Pew survey in 2022 found that only 8% of homeowners have solar installed, and an additional 39% of homeowners had given solar installations a serious thought. A lot more jobs to come!
8) In 2022, inflation was an added incentive for customers to go solar
Inflation hit everyone’s pockets in 2022 and affected certain goods much more than others. Electricity prices on average soared 14.3% year-over-year compared with inflation at 6.5% for the same time period. As a result, consumers started looking for cheaper sources of energy. In many cases, solar presented a cheaper option for many customers after the upfront installation investment. Additionally, consumers would be less susceptible to energy price fluctuations. Customers unsurprisingly want to independently power their own homes.
9) California is the place to be for solar jobs, but it sees hurdles ahead
California had a total of 78,116 employees working in solar in 2022, more than six times more than the next highest state Texas with 12,263 employees. If you’re looking to break into solar, California will be your best bet to look for jobs given the quantity of employers and residences that have installed solar or are looking to install solar.
However, California’s strong market may see some cloudier days ahead. At the end of 2022, California changes its net metering program, which is how homeowners can be compensated for energy they send back to the grid. Homeowners will no longer receive the retail rate and will be repaid based on avoided costs.
As California has excess energy supply during peak hours and we do not yet have the infrastructure to store energy efficiently (see trend 10), avoided costs are typically lower than retail costs. This means that it will, on average, take homeowners much longer to recoup their investment in new solar panels. With the shifting economic incentives, California expects to see fewer installations in 2024, slowing the overall industry from its rapid growth seen to date. However, we expect incentives to become better aligned as the industry matures and technology advances in the coming years.
10) Battery storage is critical for the solar industry and hiring many workers
As noted above, our energy infrastructure needs transformational updates as we shift to solar energy in order to supply continuous energy. We will need our energy grids to be able to efficiently store harnessed solar energy at scale, so we do not have wasted supply during daytime hours and limited supply at night time. There have been a number of important advances in battery storage and production. With this, battery-related jobs are expected to grow quickly in the coming years to meet the demand required by the solar industry. Many employers have announced plans to build mega factories across all of the United States.
11) The Inflation Reduction Act (IRA) drove many new solar developments that will come online in coming years
While the IRA’s impact on inflation is contested, one thing that you can be sure of is that it was a massive accelerant for the solar industry. With incentives spanning tax credits for manufacturers, residences, and corporations, there is a clear reason for stakeholders to invest in going solar. By most estimates now, solar is the cheapest form of energy in the United States. Transitioning to solar does have upfront costs, but the IRA aims to incentivize employers and homeowners to make the investment to decrease their own bills. It is a win for homeowners, business owners, and certainly, workers who are driving the change
12) Long-term is looking brighter than ever for solar
While 2022 was a bumpy year, the future has never looked so bright for the solar industry. Policies that were enacted in 2022 will likely take more than a year for the economic impact to start being seen. Tax credits incentivized the announcement of various projects that are now just taking off.
The Solar Energy Industries Association SEIA expects the number of full-time jobs in solar to more than double in the next 10 years to 538,000. This will be needed to meet the overall 10-year growth forecasts of the solar industry, which is expected to more than 5x the number of installations across residential, commercial, and utility sectors from 141 GW to over 700 GW.
The best time to start looking for a job in solar was yesterday, but today is looking just as good. Check out more about the roles available in solar on our overview page.
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