In 2023, the United States saw an increase of 15,564 solar jobs, marking a 5.9% rise from 2022. This growth brought the total number of workers in the solar industry to 279,447, as reported by the Interstate Renewable Energy Council (IREC).
IREC’s 14th annual ‘Solar Jobs Census’ report reveals that when considering part-time workers who dedicate less than half of their time to solar-related tasks, the overall count of solar employees rises to 364,544 workers. This expanded figure highlights the broader impact and reach of the solar industry in terms of employment opportunities.
When accounting for individuals employed in energy storage, which encompasses approximately 90,000 individuals, the combined workforce in the solar and storage sectors amounts to nearly half a million workers. Specifically, the total workforce reaches 454,136 individuals, highlighting the significant employment opportunities generated by these industries.
As solar photovoltaic (PV) installations continued to expand in 2023, the United States witnessed a remarkable surge in PV capacity. The country added 32.4GW of PV capacity, marking a substantial 51% year-on-year increase. Alongside this growth, job opportunities in the utility-scale sector also experienced a positive trend. Following an 18% decline in 2022, the utility-scale market rebounded by adding 1,888 jobs, representing a 6.8% increase compared to the previous year.
Larry Sherwood, President and CEO of IREC, emphasized the role of federal policies such as the Inflation Reduction Act (IRA) in catalyzing a significant surge in clean energy adoption and employment opportunities. He underscored the importance of fostering future job expansion through the implementation of supportive policies at both the federal and state levels, coupled with a collective industry commitment to cultivating a skilled and diverse workforce.
Residential could dampen job growth in 2024
Similar to the growth observed in the utility-scale sector, the residential solar market also experienced an increase in job opportunities in 2023. A total of 5,945 jobs were added, reflecting a 6.3% growth compared to the previous year. However, it is worth noting that this growth rate is slightly slower than the 11% year-on-year increase witnessed in the preceding year.
The residential solar sector in the US is anticipated to experience a decline in installations in 2024 due to the influence of two key factors: high interest rates and California’s transition to net energy metering 3.0 (NEM3.0). The implementation of NEM3.0, which took effect last year, has resulted in reduced incentives for solar PV owners, impacting the attractiveness of residential solar. Additionally, the prevailing high interest rates have further contributed to this anticipated decrease in installations within the sector.
A potential deceleration in the residential solar market, which represents the most labor-intensive segment, may impede the overall growth of solar jobs in 2024. Despite this concern, a survey conducted by IREC as part of the report revealed that solar companies self-reported an anticipated job growth rate of 10% for the year 2024.
Nevertheless, the residential sector continues to hold the highest number of solar jobs in the United States, surpassing 100,000 positions. Following closely behind is the commercial sector, which experienced a year-on-year decline and currently employs nearly 31,000 individuals. As of the conclusion of 2023, the utility-scale segment supported approximately 30,000 jobs, while the community solar workforce exceeded 17,000 employees.
Nearly 180,000 jobs in installation and project development
When examining the various sectors within the solar industry, it becomes evident that installation and project development continue to serve as the primary catalyst for job creation, employing approximately 180,000 individuals by the close of 2023. This sector alone constitutes nearly two-thirds (64%) of all solar jobs. Following closely behind are wholesale trade and distribution, as well as manufacturing, both of which employ over 33,000 workers, making them equally significant contributors to the solar job market. Additionally, operations and maintenance account for more than 21,000 jobs within the industry.
The most significant growth in solar employment was observed in Florida, Texas, Arizona, and Nevada within the United States. A total of 47 states experienced an upsurge in solar job opportunities in 2023. California continues to maintain its position as the top state for solar employment, boasting over 80,000 jobs. Remarkably, California’s solar workforce surpasses the combined total of seven other states. Following California, Florida and Texas secure the next spots on the podium, with 14,108 and 12,421 jobs respectively.