The Solar Foundation released its annual National Solar Jobs Census report this week, projecting the solar industry will need to add 900,000 workers to meet President Joe Biden's 2035 clean energy goals.
Despite the effects of the pandemic on the U.S. economy, the solar industry’s strong start in 2020 through February and ability to adapt to market demands yielded more success than anticipated from a year plagued by supply issues and economic uncertainty.
While the 231,474 workers employed by the solar industry is down 6.7 percent from the year prior, competition in 2020 produced higher labor productivity, increased diversity in the industry, and generated greater consumer interest after a year of stay-at-home orders, including installation of a record 19.2 GWdc.
Despite the positive news, the report projects the solar industry will employ only about 400,000 workers by 2030, leaving a gap of 500,000 additional positions to fill if President Biden’s plan to decarbonize the electricity sector by 2035 is to be successful.
Two factors can be credited for solar deployment hitting a record high in 2020. First, utility-scale installations, and, second, increased labor productivity. Utility-scale installations generated accounted for 73 percent of the solar capacity installed in 2020, according to the report.
But residential roof-top solar held its own despite a pandemic that forced companies to alter their playbook and be more flexible in the marketing and installation practices. Residential solar companies adapted to physical distancing requirements by moving away from in-person sales and found significant success reducing costs and winning new business. The shift to home offices resulted in an uptick in interest in installing roof-top solar and helped companies keep installation teams busy.
The absence of in-person sales required less labor, while stay-at-home orders forced consumers to be more conscious of their energy use and seek alternative energy options. With greater residential consumer interest, the demand for labor required system improvements that maximized productivity.
While consumer interest increased with labor productivity, the workforce continued to diversify. Last year's data shows that nearly one in three workers were women, and nearly one in 10 are veterans, which is higher than the overall economy. Around six in 10 employees in the solar sector work in installation and construction, while the other 75,000 employees work in manufacturing, sales and distribution, operations, maintenance, and other fields. Half of the workers in installation and construction contribute to the residential market, while two in 10 work in commercial solar, two in 10 work in utility-scale, and the remaining one in 10 work in community solar. Installation and construction jobs continue to represent the biggest percentage of overall employment in the industry.
Of the 154,610 employees in the installation and developer segment of the workforce, more than half (55 percent) work in the residential market. Residential roof-top solar creates 30 times more jobs than utility-scale solar per million dollars spent.
The overall number of jobs in the solar industry decreased in 2020 to its lowest point since 2015. Many companies have not yet returned to their pre-pandemic hiring levels, according to the report. At the same time, labor productivity increased across all sectors of the industry, compensating for the lower employment totals. Residential productivity increased 19 percent, while utility-scale productivity increased 32 percent.
Another positive takeaway from the solar jobs report is that compensation in the sector is competitive. Compared with jobs in other energy sectors and the U.S. economy overall, construction managers, general and operational managers, maintenance and repair workers, and sales representatives in the solar industry are paid more on average than their peers.
For more on the jobs report, visit the Solar Energy Industries Association website.