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2011 Outlook for Clean Energy Jobs in the U.S. – Beating the Trend

In this second part of our series, we examine how the enormous growth of clean energy installations in the U.S. is creating jobs and putting Americans back to work.

Jennifer Runyon, Managing Editor
November 12, 2010  |  16 Comments

The reports are so grim, it is hard to believe at times. America is staring down a 10% unemployment figure and the number doesn't seem to budge as the months tick by.

Analysts report that if you take into account the number of Americans that have stopped looking for employment as well as the number who have found only part-time work but seek full-time employment, the figure is more like 18%.  In California, it's 22%, an unemployment percentage that hasn't been seen since the depression. In total, as many as 30 million people are looking for work right now.For years, the clean energy industry has claimed that it is the one bright spot in the U.S. economy.  While other industries shrink and lose jobs, clean energy grows.

In looking at the data, it is clear that in all renewable energy technologies but one, in 2011 there will be significantly more jobs than there are now. The simple fact is that clean energy is indeed growing and creating jobs, but with U.S. unemployment figures so large, it’s just been hard to notice. 

Solar Power

The solar power industry doubled the number of people that worked in the industry from 2009 to 2010, from approximately 50,000 in 2009 to 100,000 in 2010, according to the latest reports.   In 2011, it is expected to grow the number of jobs in the industry by 26%.  “You’d be hard pressed to find another industry with a 26 percent job growth rate for 2011,” said Rhone Resch, president of the Solar Energy Industries Association (SEIA).

The Solar Foundation released its National Solar Jobs Census 2010 at Solar Power International in October, showing that the solar industry is creating jobs at a much faster rate than the overall U.S. economy, which is expected to grow at around 2%.  The report documents, through 2500 interviews with employers throughout the country, that over the next 12 months, more than half of U.S. solar firms expect to add jobs, while only 2% expect to cut workers.  Firms are adding employees in all 50 states and the fastest growing jobs are installers and electricians. 

Jobs for installers are growing because installations are growing at very high rates as well. SEIA along with GTM Research recently released a report that shows solar installations in 2010 are up more than 100% over 2009. The U.S. Solar Market Insight report compiled data for the first half of 2010 and shows significant growth in the U.S. solar industry.

It appears very likely that when accounting for both solar electric and solar thermal installations, the industry will surpass the 1 GW mark for annual installations in 2010.  While 1 GW is a big number, Resch announced at SPI that the industry’s goal is to be installing ten times that number annually in 5 years.  Resch said that installing 10 GW annually by 2015 would create as many as 220,000 jobs.

Geothermal Market: Strong 2011 Growth

For geothermal energy, the industry is expected to experience a strong rebound in 2011 thanks to the American Reinvestment and Recovery Act (ARRA), said Karl Gawell, Executive Director/ President of the Geothermal Energy Association (GEA). 

“We are now projecting that they’ll be between 500 and 700 MW of new geothermal power projects in the drilling construction phase in the coming year,” said Gawell. He said that this final phase of geothermal development is the most difficult, expensive “and job intensive stage of development.”

Those projects will result in 3000 or more jobs added in the coming year, mostly in California and Nevada.

In late October, the GEA released its Green Jobs for Geothermal Energy Report, which examines jobs in the industry from project start to finish.  The findings show almost 1000 different people are involved in a geothermal project.  According to report, the development of geothermal power projects provides long-term income for a variety of skill-leveled employees.  “This includes welders; mechanics; pipe fitters; plumbers; machinists; electricians; carpenters; construction and drilling equipment operators; surveyors; architects and designers; geologists; hydrologists; electrical, mechanical, and structural engineers; HVAC technicians; food processing specialists; aquaculture and horticulture specialists; managers; attorneys; regulatory and environmental consultants; accountants; computer technicians; resort managers; spa developers; researchers; and government employees.”

Since geothermal projects have long lead times, much of the money allotted to the industry from the ARRA will result in projects getting off the ground in 2011.   According to the GEA, about 95% of the projects that received stimulus funding are either less than 50% complete or have yet to break ground.  Gawell said that stimulus funding will be peaking in 2011 for the geothermal industry.

Looking Further Ahead:  Bioenergy, and Hydro Jobs On the Rise.  Wind, not so much.

In terms of bioenergy and biobased products, the U.S. is expected to lead the world in global development according to a report form the World Economic Forum released earlier this year.  In the report, data provided by the Biotechnology Industry Organization (BIO), shows that as of June 2010, the biorefinery industry accounted for more than 40,000 jobs in the U.S.  The commercialization of second and third generation biofuels is expected to create 800,000 new jobs (190,000 direct new green jobs, and 610,000 indirect new jobs) in the U.S. by 2022. Achieving the biorefining industry’s full potential could create tens of thousands more new jobs within the next five years, said the report.

In another report, “The Economic Impact of Advanced Biofuels Production,” which was released in February 2009, it was estimated that under the renewable fuels standard scenario the total number of jobs created through the production of second and third generation biofuels will be 29,000 by 2012. “Taking into consideration indirect job creation as a result of the economic stimulus created by biofuels development brings total job creation to 123,000 by 2012,” said the report. These short-term job growth number could be lower than the 29,000 and 123,000 projected due to the fact that the RFS was scaled back in February 2010, after this report was issued.  Under the original ruling, it was required that 100 million gallons per year of cellulosic ethanol be on the market by 2010 but once it became clear that that was unachievable the number was reduced to 5 million gallons.  The 2022 job growth numbers are solid however, as the overall number of gallons of cellulosic ethanol that will  need to be produced by 2022 remained unchanged.

Jobs in this industry range from laborers and freight, stock and material movers; mixing and blending machine setters, operator and tenders; shipping and receiving clerks; chemical equipment operators and tenders; electrical and electronics repairers; sales representative, wholesale and manufacturing, technical and scientific products and many more.

Wind Power: Still Waiting

The wind power industry experienced a slowdown in 2010 for the first time in many years.  With less access to the large amount of capital needed to build projects, the industry installed just 539 MW of capacity in the first quarter of 2010, the lowest number since 2007.

“The industry is stalled,” said Peter Kelley, Vice President, Public Affairs with the American Wind Energy Association (AWEA) who indicated that the wind power industry is waiting for policy that would help it grow.  AWEA has been calling for a nation renewable energy standard for several years, believing that a strong signal from the U.S. government is what is needed to jump-start the industry.

In 2008, the industry employed 85,000 people, a number that has fallen in recent months as financing fell away. 

Swift, short-term action to extend tax credits for renewable energy in 2009 helped boost the U.S. wind industry to historic job growth and a high of 10,010 MW in new capacity last year. With swift passage of a Renewable Electricity Standard, Denise Bode CEO of AWEA said the wind industry can get back on track and add new generation faster than any other source of electricity. 

“This industry has proven a number of times that when you turn these policies on, we charge out of the gate,” said Steve Lockard, CEO of TPI Composites, a former boat-building company now manufacturing large wind turbine blades.  “[The] U.S. wind energy has tens of thousands of workers and wind farm sites ready to go,” Lockard added. “It’s a good investment opportunity for Congress and the states, to create manufacturing jobs across the country.”

Hydro Power: Employing Millions in the Long Run   

The renewable energy with the most capacity online in the U.S. is hydropower, which currently accounts for 7% of the electricity generated in the country.  If you take into account an average of 2 to 3 full-time equivalent (FTE) workers per megawatt of installed capacity that are needed to operate, maintain and license compliance of the existing 100,000 MW of installed hydropower capacity, the U.S. hydropower industry currently accounts for approximately 200,000 – 300,000 of direct jobs.

A recent study conducted by Navigant Consulting and released earlier this year focused on just how many jobs could be created if hydropower was expanded under either a strong national RES (25% by 2025) or a weak RES (10% by 2025).  The number of jobs that would be created is staggering.  Under the strong RES scenario, it is estimated that 1,400,000 cumulative jobs across the country would be created by 2025, including 420,000 direct jobs, 280,000 indirect jobs and 700,000 induced jobs.  Induced jobs account for the multiplier affect of direct and indirect jobs.

These numbers comes from taking advantage of the vast untapped potential of hydropower in the U.S., which has more than 400 GW of untapped hydropower resource potential inland and in its oceans.

Under a weak RES scenario, the number of cumulative jobs is expected to be 480,000 by 2025. 

Jobs in hydropower come in all shapes and sizes.  Project development activities result in jobs doing permitting, regulatory studies, licensing, design, and model testing.  Hydropower also employs folks who perform component manufacturing, shoreline development, environmental instrumentation construction (such as fish bypass pieces), project construction, project commissioning, routine O&M, and minor and major equipment overhauls.

Clean Energy Creates Millions of Jobs

Admittedly, it’s difficult to tally these numbers in any comprehensive way to draw a clear picture of the total growth of the renewable energy job market for next year, in five years and in 15 years.  Some industry estimates are projecting jobs in 2011, others look out as far as 2025.  Just a rough summation of the above numbers shows that more than 2.5 million people, at least, will be either directly or indirectly employed in renewables by 2025.  That would put about 8% of the 30,000,000 people looking for jobs right now back to work.  

Related Links

  • First Installment: Will Clean Energy Manufacturing Create US Jobs?
  • Blog Post: Yes, Green Jobs Are Real
  • Blog Post: Solar Power VS Fossil Fuels: Game On

16 Comments

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martin schmidt
martin schmidt
November 27, 2010
Thanks for that Andrew. The site is interesting, a bit cryptic but I'm interested. Wind/solar do seen to have major issues for efficiency and cost.
Andrew W
Andrew W
November 27, 2010
@ Martin81620: First, get a copy of the book "Cool-It" by Bjorn Lomborg and read it.

Second, have a look at http://www.2020b.com and the Intro Video. The three breakthroughs referenced were all created by young men in their 20s. They weren't educated in the areas of their innovations - they were curious, so they learned. I don't know everything about their ideas, but I do know they used more imagination than knowledge. As best I can tell they wanted to solve the problems and just kept working on them.

I'm an angel investor and I get involved in many deals. There are a lot of smart people in the world, but the smartest ones are the ones who actually solve problems.

As far as "the truth of green jobs" there isn't any yet. There is some possibility, but I haven't seen all the money that's been spent by government add up to much. I'm still betting on young, imaginative minds.
martin schmidt
martin schmidt
November 26, 2010
I'm currently in school at Ecotech institute in Aurora, Colorado. I like Ecotech and I like the idea of a renewable energy career, but is it worth it to go back to school for an AAS degree in renewables? I've been doing extensive research on the truth of green jobs, but have been confused by the extreme polarity of opinions and the link to politics.I'm hoping some experienced renewable people will sound off and give me their opinions. Thanks
Andrew W
Andrew W
November 20, 2010
I think we're all hopeful about wind and solar energy, but we need a breakthrough. Automation will reduce the capital costs some, but a good portion of the cost is already the materials. Storage and reliability are also a problem.

I will repeat that I believe the DOE has wasted an incredible amount of money on research. They should offer PRIZE MONEY for results, but Dr. Chu would rather award money to his friends.
Andrew W
Andrew W
November 19, 2010
Then SOLVE the problem it instead of pretending it already is. We need clean, AFFORDABLE electricity.
Andrew W
Andrew W
November 19, 2010
If you going to do the math on wind turbines you must include the "maintenance costs" that are between 30-40% of revenues. Plus, $.15 kWh is NOT "affordable."

Wind energy cannot get to $.08-$.10 kWh and that's the problem. Add the reliability factor and the lack of storage and it doesn't work economically. It is still wishful thinking. I have lost money investing in wind farms. After a few years maintenance suffers and there aren't funds available. On one deal in Texas we had to PAY to sell our power generated at night just to get the tax credits.

Regarding solar: Robotic production of PV would reduce the costs, but not enough to make a difference. There is also the reliability and storage problem.

We need a breakthrough for clean AFFORDABLE electric energy. Wind and solar are not even close. Wind produced electricity is double coal and solar is more than triple. Solve that.
Allen Gerhardt
Allen Gerhardt
November 19, 2010
It seems that many comenters are merely spreading rumors instead of doing their research. The claim that installation of solar power is dangerous because of high voltage is just silly. Installation of electric systems is always done with voltage applied after the network is wired. Simply placing heavy paper over the panels will stop electric production until connections are complete. Installation is a one time labor and systems are designed with ease of installation in mind. Solar and wind are proven technologies with costs offering a payback of investment in much less time than financing payments require. In areas with incentives in place some solar systems are achieving a pay back period of l0 years with as few as 5 years reported. The solar systems typically are warranted for 25 years, and longer is possible. Most deniers can be found to be those who have tied themselves to fossil fuels and are attempting to spread lies to avoid competition. I am thankful for Renewable Energy World for supplying reports of actual working systems, so we do not have to rely on rumors. Site characteristics are very important in choosing the type of renewable energy for each customer. There is no one perfect solution for everyone. Many companies offer site analysis and utilizing their expertise is advised.
Andrew W
Andrew W
November 18, 2010
"Wind is slowing." Yes, because the deals don't make economic sense. A $5 million (installed) turbine would be lucky to gross $1 million in electricity. Start paying for maintenance, capital finance costs and there's little profit available.

We still need clean AFFORDABLE energy. Wind and solar are not.
Norma McDonald
Norma McDonald
November 16, 2010
One sector of clean energy was left out of this report - biogas plants. The US market is expanding in both municipal and agricultural sectors, transforming municipal organic waste, manures, crop residuals, soiled paper and energy crops to heat, electricity, pipeline quality natural gas and vehicle fuel. The projects create both the short term engineering and construction jobs as well as the ongoing jobs associated with feedstocks, operating the facilities and marketing the energy and value added compost. Please visit www.americanbiogascouncil.com for more information as well as a handy link to write your legislators now for an extension of Section 1603.
Captains of Industry
Captains of Industry
November 15, 2010
This is a great article, I'm nowarmed with facts for any nay-sayers who claim clean energy jobs are a myth--thanks Jennifer! Seems that in wind power, in particular, we need to focus on ending those campaigns that stonewall new development; without the green light on construction of new farms, green energy jobs are pulled before they've even been created.
John Raman
John Raman
November 14, 2010
The bike. Only a fool would try to install Solar panels on your home. You are working with electricity up to 600 volts and working on a roof. So how risky are these 2 endeavors are worth your life. Let alone in most jurisdictions, you need a permit to do such work. About subsidies, the natural gas, oil, coal, industry's are subsidized. Why shouldn't solar be on the same playing field? I also disagree with you that all these some of these jobs are in Chinese factory's. Again you are mistaken. There are several plants here in the US that are competitive with plants overseas thus creating jobs here. You don't have a clue about how many green jobs are created in the US. Ever hear of NABCEP certification and the demand for certified installers? Probably not. You should do some homework.
Matthew Tripoli
Matthew Tripoli
November 14, 2010
Thebike,

How could the miniscule price increases from renewables come close to destroying the number of jobs high priced fossil fuels did during the last commodity bubble? Should we just sit on our hands and wait for $140 oil and $14 gas again?
Bill Bugbee
Bill Bugbee
November 13, 2010
Let's level the playing field with true cost accounting between dirty and clean energy options for America and the world.

The International Energy Agency (IEA) concluded this past week (ahead of the G20 conference) that global fossil fuel subsidies should be eradicated, stating: "Eradicating subsidies to fossil fuels would enhance energy security, reduce emissions of greenhouse gases and air pollution, and bring economic benefits." Oil products were the most heavily subsidized fuel in 2009, with 40 percent of all fossil-fuel consumption subsidies used to support their consumption.
IEA calculates, with some creditability, that getting rid of fossil-fuel consumption subsidies by 2020 would cut global primary energy demand by five percent. In the US, the last round in developing a coherent long term national energy policy resulted in $80B tax give away to big oil, expansion of coal production subsidies coupled to free ride over the top of environmental regulations), while the total energy bill's targeted funding (tax subsidies, grants, loans) resulted in less than 2% of the funding dedicated to renewables.

The IEA report estimated fossil fuel subsidies reached $312 billion globally, in 2009, mostly in developing countries, compared with $57 billion in subsidies for renewable energy. Worldwide, fossil fuel subsidies were on course to reach $600 billion by 2015, and renewables subsidies more than $100 billion.

In the US, the imbalance favoring fossil fuels is even more pronounced.

Economists and statisticians in their mission to calculate the cost of energy to consumers and taxpayers, fail to account for the full cost of external costs tied to health and environmental costs absorb by society as a whole, and to taxpayers, in subsidizing a fossil-fueled economy.
kent beuchert
kent beuchert
November 13, 2010
As an economist and statistician, I always laugh when (usually) politicians start trying to calculate number of jobs gained from some endeavor. The analyses are so full of holes and preposterous assumptions that I assume they were written by political advisors, lawyers by training, and used to presenting only one side of the story. Perhaps the biggest Alice-in-Wonderland logic about all this is the implied claim that yanking billions of dollars out of American pockets in order to subsidize carbon free energy production has no effect on the level of employment, but putting it into subsidized industries does have an effect, and only a positive one. In the solar power arena, we have trends in the residential arena that are aimed at one thing - making the labor required for installation as small as possible, thus aiming to eliminate as many of those "green" jobs as possible. In fact, any semi-capable homeowner can easily install his own solar array these days. And thats the only way that makes any economic sense.
Mostly the jobs that solar arrays make possible these days are in China and the Far East, in their factories, which we cannot compete against. Another job killer is due to the extra money that is withdrawn from American pockets by everyone who has to pay more for power due to the renewable higher costs. No matter how you slice it, money spent for renewable power reduces the total number of jobs - it has to simply because it reduces the efficiency of power production. This isn't rocket science, you know, but there are plenty of folks out there who delude themselves that they can get someting for nothing. If you want to know exactly how brainless and counterproductive it is to spend a lot of money to create jobs, take a look at the horrendous experiences of the New Deal during the Great Depression. Those programs made the American depression longer and deeper than that of any Western nation. Even WWII did not end it - it finally ended in 1947
Rich Hessler
Rich Hessler
November 12, 2010
50,000 new clean energy jobs...nice.

I was just reading in coal country, there are 30,000 total miners.

http://ecopolitology.org/2010/04/08/u-s-coal-mining-outlook-2010-fewer-jobs-fewer-mountains/

Slay the beast, get your Solar Sales Training today. :)
Bill Bugbee
Bill Bugbee
November 12, 2010
Missing from this clean energy report are the jobs resulting from the development, domestic manufacturing, sales, distribution, and support of Smart Grid technologies. Smart Grid jobs, include hardware and software, telecommunications, AMI demand response, infrastructure supply and demand grid management technologies and support applications.

An emerging green energy-based economy and its jobs contribution can only be complete when renewable energy sources that require a smart grid infrastructure are factored together. Together, this sector's contribution in creating jobs growth, further includes a combination of clean energy (source-to-consumer jobs), other environmental-led job growth in all sectors (including electrified transportation), combined with the rising demand for sustainability technologies. In the aggregate, there are many clean tech job multipliers that far exceed legacy economy job indicators (which are shrinking due to automation, global competition, other factors).

The 2011 Congress, led by house Republicans will seek to roll-back the clock on clean energy progress in this country. Earlier indicators include the party's likely appointment of climate science denier Joe Barton of Texas (big oil's favorite son) to head the House Energy and Commerce committee -- Barton apologized to BP during congressional hearings on the BP gulf oil spill disaster earlier this year.

If the US is to hold the high ground on emerging clean energy technology, then businesses who share this goal must focus their attention on Capitol Hill in the new year ahead. The clean tech sector will need to speak with one voice in preserving the momentum to energy sustainability by reminding Congress of its all important role and contribution to the nation's economic recovery, while moving America passed its fossil-fueled dependences. The stakes could not be higher for investors who also support this market sector, especially in the absence of a coherent national energy policy...

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Jennifer Runyon

Jennifer Runyon

Jennifer Runyon is managing editor of RenewableEnergyWorld.com coordinating, writing and/or editing columns, features, news stories and blogs for the publications. She also serves as conference chair of Solar Power-Gen Conference and Exhibition...
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