As the world races to limit global temperature from rising 1.5°C, the global energy landscape is undergoing a seismic shift. The spotlight has fallen on renewable energy sources, and solar energy has emerged as a game-changer. But this transition isn’t only crucial for environmental preservation. The profound impact of solar energy on job creation is undeniable, catalyzing changes in the employment sector that have far-reaching impacts on economies around the globe. This article explores the extent of job growth, gender equality in the solar energy industry, and how it compares to traditional fossil fuel industries in terms of employment opportunities.
The solar energy industry has experienced remarkable growth in recent years, with the installation of 132.8 GW of solar Photovoltaic (PV) capacity worldwide in 2021, a significant increase from 125.6 GW in 2020, as reported by the International Renewable Energy Agency (IRENA). This rapid expansion has led to a substantial increase in job opportunities, both directly and indirectly. In 2021, global solar PV employment reached an estimated 4.3 million, surpassing the 4 million mark in 2020.
Taking a closer look at the manufacturing process of solar PV, we discover distinct stages that present unique job opportunities. These stages encompass the processing of polysilicon into ingots and wafers, as well as the assembly of cells and modules. Each stage demands different levels of skills and expertise, creating a diverse range of employment opportunities within the industry. It is worth noting that while automation has gained prominence in certain areas, it is not yet universally applied. For instance, automation is particularly prevalent in the production of thin-film cadmium telluride (CdTe) modules, while jobs in crystalline silicon (c-Si) module manufacturing, the dominant type, can be less susceptible to automation.
The U.S. Department of Energy highlights that the production of 1 GW of c-Si modules has the potential to generate anywhere from 1,085 to 2,020 direct jobs across the full value chain. On the other hand, thin-film CdTe modules, due to their higher degree of automation in production, are projected to create an estimated 400-600 direct jobs per gigawatt. These insights into the solar energy industry’s manufacturing process and job creation potential illustrate the diverse employment opportunities available, ranging from highly skilled roles to those less susceptible to automation. By understanding the dynamics of solar energy on job creation, we can better appreciate its role in driving employment growth and contributing to sustainable economic development.
The distribution of solar jobs across the globe is currently skewed, predominantly following the manufacturing landscape. China, as the leading producer of PV equipment and the world’s largest installation market, holds the lion’s share, accounting for approximately 63% of global PV employment. In 2021 alone, this translated into around 2.7 million jobs within China’s solar industry.
Significant contributions to global solar employment also come from the United States, Europe, and India. In 2021, the U.S. solar industry employed 255,000 workers — a 9% increase from 2020 — while Europe estimated 268,000 jobs, with 235,000 of those located within EU member states. India’s on-grid solar employment stood at around 137,000 jobs, with an additional 80,600 jobs in off-grid settings, totaling to approximately 217,000 jobs.
Taking a closer look at the United States, these positions are spread across various sectors, including installation, project development, manufacturing, wholesale trade and distribution, and operation and maintenance activities. Despite the progress, there’s a distinct need to foster diversity within the workforce, which currently witnesses underrepresentation from women, Latinx, Asians, and Black employees, especially in management positions. But the country has been actively working to strengthen its energy sector’s industrial base, with a particular focus on renewable sources. The Biden administration initiated a strategic push in 2021 to tackle issues such as raw material availability, expansion of domestic manufacturing, diversification of foreign supply chains, and improvement of waste management. Furthermore, the passage of the USD 1.2 trillion Bipartisan Infrastructure Law in 2021 has greatly enhanced these efforts, thereby augmenting solar job opportunities.
Europe, on the other hand, recorded an impressive installation of approximately 23 GW of solar PV in 2021, surpassing installations from previous years. Notably, Poland emerged as a leading contributor to solar employment due to its focus on labor-intensive residential rooftop systems, despite not being the largest regional market or a significant manufacturer.
While the distribution of solar jobs seems concentrated in certain regions, it’s crucial to recognize the global potential of solar energy on job creation. This potential can be actualized with appropriate policy support, access to technology, and capital investments. Importantly, the decentralized nature of solar energy systems offers job creation opportunities even in remote and off-grid locations, fostering inclusive economic development. The solar industry’s evolution and growth paint an optimistic picture for global job creation and socio-economic development in the years to come.
The solar industry’s commitment to gender equality has shown encouraging signs. IRENA’s report suggests that the solar PV sector fares better in gender balance compared to the broader renewable energy sector and far surpasses the global oil and gas industry. Women constitute 40% of the full-time positions in the solar industry, a figure that surpasses the renewable energy sector’s average of 32%, and is nearly twice that of the wind (21%) and oil and gas sectors (22%). This demonstrates the industry’s commitment to gender inclusivity, a characteristic that bodes well for its future growth.
A closer look at the roles filled by women reveals a more nuanced picture. In administrative roles, women excel, constituting 58% of the workforce. However, when it comes to technical roles not related to STEM, such as legal and procurement positions, the representation of women drops to about 38%. The situation is slightly more challenging in STEM roles, where women hold a mere 32% of the total positions. In non-technical roles related to marketing, sales, distribution, product assembly, and installation, women represent around 35% of the workforce, a figure driven partly by off-grid solar PV deployments.
In leadership roles within the solar PV industry, women hold 30% of managerial positions and only 13% of senior management posts. These figures underscore the existence of a glass ceiling within the sector, a phenomenon not unique to the solar industry.Looking at different areas within the industry, solar PV manufacturing employs the highest percentage of women at 47%. Service providers and developers trail slightly with 39% and 37% respectively. The share of women in solar PV installation is a disappointing 12%, highlighting a clear gender disparity.
Like any other industry, the solar sector isn’t devoid of barriers impeding women’s entry, retention, and advancement. Stereotypical gender roles, absence of fair and transparent policies, and cultural and societal norms influence behavior and pose significant challenges. However, the burgeoning off-grid solar PV sector offers ample opportunities for women, especially in roles involving consultation, planning, construction, and operation. Decentralized energy solutions also create avenues for women in fields enabled by energy accessibility.
Overcoming these barriers calls for strategic actions. A holistic approach involving raising gender awareness, fostering supportive national policies, abolishing restrictive laws, cultivating improved workplace practices, and facilitating supportive networks for training and mentorship is crucial.
Over the years, there has been consistent growth in job creation in the solar sector, mirroring the increasing investment and interest in renewable energy worldwide. However, the average salary within the solar industry varies considerably across the globe and within the various segments of the industry. Factors such as the level of automation, the complexity of the job, the geographical location, and the level of skills and qualifications required, among other factors, can significantly impact wages. Here, we’ll touch on some key positions and their general requirements and significance. For an in-depth look at these and other roles, including average salaries and detailed descriptions, check out our comprehensive article on careers in solar energy.
Technical roles in the solar industry are designed for those with a profound understanding of the practical applications of solar technology. These positions often involve hands-on work and problem-solving. Occupations in this category, including solar panel installers, solar electricians, and solar system designers/engineers, necessitate not only a deep understanding of the technology but also manual skills. As technology advances, some routine tasks might become automated. However, the troubleshooting and customization aspects of these jobs require a human touch.
The commercial and operational spheres of the solar industry offer roles such as solar energy sales consultants and solar operations managers, which demand not only business acumen but also a solid grasp of the solar energy market. Expertise in project management, sales, and marketing is essential. While certain data-driven elements of these roles may be aided by automation, the strategic decision-making and relationship-building tasks largely rely on human skills.
Scientific roles in solar energy require extensive research and project oversight to drive the development of groundbreaking technologies or enhance existing ones. These roles, which include solar research scientists, solar project managers, and solar manufacturing technicians, sit at the forefront of innovation. While automation may expedite certain lab procedures or data collection, the creative and interpretive aspects of these roles necessitate human input and critical thinking.
Roles focusing on the promotion of solar energy products and the advocacy of policies that bolster the solar energy industry are crucial for the sector’s growth. Positions such as solar policy analysts and solar marketing specialists play a pivotal role in influencing both public opinion and policy-making. While data analysis in these roles can be automated, the nuanced understanding of public sentiment, creativity in campaign design, and strategic advocacy skills remain uniquely human tasks.
According to the International Energy Agency’s (IEA) Net-Zero Emissions by 2050 (NZE) Scenario, the push towards net-zero emissions will result in an overall job increase in the energy sector. It is projected that by 2030, approximately 14 million new jobs will be generated in energy supply, compensating for the loss of 5 million positions in fossil fuel production. This results in a net gain of 9 million jobs in this pathway. However, the transition isn’t without its challenges. Some areas and sectors will experience job loss, particularly those heavily reliant on fossil energy production, like coal. These shifts can have significant local economic impacts, even if the number of direct job losses is small.
On the plus side, despite the job displacement in fossil fuel sectors, many of these workers already possess experience and skills pertinent to the evolving clean energy sector. For instance, oil and gas workers can often transition to roles in offshore wind, carbon capture utilization and storage (CCUS), and low-carbon gas production and transport. Similarly, coal miners possess skills useful for mining critical minerals, such as lithium, copper, and cobalt, the demand for which is projected to increase sevenfold by 2050. Transitioning these skills can even extend to environmental restoration work, maintaining jobs within communities after the closure of mines or wells.
The creation of new jobs in clean energy presents a unique opportunity to tackle persistent challenges around workplace safety, equity, and inclusion. Employment creation can be strategically targeted in geographical areas and communities impacted by the decline of local industries or historically underdeveloped or disadvantaged. Moreover, new jobs can offer competitive compensation while maintaining the competitiveness of clean energy.
However, labor constraints due to a lack of qualified workers for new positions in clean energy could pose a hindrance. As solar and wind installations potentially quadruple by 2030, the energy sector must address the difficulty of hiring suitable talent.
The transformation towards a clean energy future promises a myriad of opportunities while posing a unique set of challenges, including the significant impact of solar energy on job creation. The path to net-zero emissions represents an era of job transition—away from traditional fossil fuels and towards new, sustainable technologies and industries. It is a process that can lead to an overall increase in jobs in the energy sector, with the potential to create up to 30 million jobs by 2030.
Yet, we must not overlook the challenges and potential dislocation that come with this change. Some communities, particularly those heavily dependent on fossil fuels, may face significant economic impacts. However, by leveraging the skills of workers from traditional energy industries and aligning these with the burgeoning clean energy sector, we can create pathways for sustainable job transition, driven by the power of solar energy. Furthermore, this transition offers a chance to address long-standing issues around workplace safety, equity, and inclusion, propelled by the advancements in solar energy.
Understanding the nuances of these transitions is vital and can only be enhanced with more detailed and granular data. As we arm ourselves with better insights into the shifting dynamics of energy employment, including the impact of solar energy on job creation, we can design more effective strategies and programs that anticipate the changes ahead and guide us towards a greener future.
As we march forward in our clean energy transitions, we do so with an eye towards creating a future that is not only sustainable and resilient but also fair and inclusive, thanks to the transformative influence of solar energy on job creation. The path to net-zero emissions is about more than mitigating climate change—it’s about creating an equitable and sustainable future for all, driven by the power of solar energy. This transition is more than a shift in energy sources; it is a fundamental change in our societal fabric that should leave no one behind. As such, we must ensure our efforts are underpinned by a clear commitment to both environmental sustainability and social justice, with solar energy at the forefront of job creation and transformative change.
Solar energy drives job creation through the rapid expansion of the solar industry, offering diverse employment opportunities in manufacturing, installation, project development, and more.
The solar industry showcases better gender balance compared to other renewable energy sectors, with women representing 40% of full-time positions. However, there is room for improvement, particularly in technical and leadership roles.
According to the International Energy Agency, the transition to net-zero emissions by 2050 is expected to generate approximately 14 million new jobs in the energy sector by 2030, offsetting job losses in fossil fuel production.
Workers from traditional energy industries, such as oil and gas or coal, can transition to roles in offshore wind, carbon capture utilization and storage (CCUS), critical mineral mining, and other clean energy sectors that align with their skills and experience.
China, the United States, Europe, and India have significant solar energy job markets, with China leading with the highest number of solar jobs.
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