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Don't Miss The Great Solar Debate: Where Does the Global Solar Industry Stand? Click Here to Register! ×

Supporting a Real Job Creator – the U.S. Solar Industry

Andrea Luecke, Executive Director, The Solar Foundation
November 14, 2012  |  7 Comments

After being bombarded with political ads for the past few months, most of us are relieved we no longer encounter them everywhere we turn. But imagine if you heard one like this:

I’m the candidate who can take credit for adding nearly 14,000 American workers in the past year and supporting an industry that has experienced an astounding 27 percent job growth since 2010. I’m creating highly skilled, domestic jobs that pay well. I’m the U.S. solar industry and I approve this message.

After a grueling and largely negative campaign season, this is the kind of positive message Americans want to hear. And it is backed by fact, not spin.

Today, my organization, The Solar Foundation, released its third annual National Solar Jobs Census, which found that the U.S. solar industry now employs 119,016 Americans. That’s an increase of 13,872 workers and a 13.2 percent employment growth rate over the previous year’s total. That’s a job creation record any candidate would love to run on.

Looking at these results more closely, Census 2012 found that installers led the way in job growth, employing 57,177 Americans as of September 2012 (a 17.5 percent increase over the revised 2011 figure). The installation subsector remains the largest employer in the U.S. solar industry, and continues to provide highly skilled jobs that, by their very nature, cannot be outsourced. The Census also found that much of the installer growth occurred at larger firms. This suggests that the U.S. solar industry is moving into period of consolidation and maturation that will ultimately make the industry more robust and stable.

Additionally, the Census found that the sales and distribution subsector experienced a 23.1 percent increase, now employing 16,005 Americans. Employment in ”other” solar jobs, primarily in research & development and finance, experienced the largest growth rate – 46.1 percent –  bringing the total for this composite category to 8,105 U.S. solar workers.

Unfortunately (though not surprisingly), not all of the findings in Census 2012 tell a happy tale.  As suggested by the failure of a handful of module manufacturers and the high-profile media coverage these closures received, the manufacturing subsector had the weakest showing in Census 2012 – shedding nearly 8,200 jobs over the period we studied.  At 29,742 solar workers, manufacturing still accounts for nearly one-quarter of solar jobs in the U.S., but many of the surviving firms are forced to subsist on razor-thin margins. The difficulties facing this subsector stem from increased global competition in module manufacturing, leading to a decline in component prices. This trend, however, has had a dual effect: putting a damper on job creation upstream, but feeding a boom in installation – and therefore jobs – downstream. In fact, employment gains in the installation sector were enough to single-handedly offset the job losses in manufacturing.

Equally notable is that nearly 50 percent of the more than 1,000 companies surveyed for the Census expressed great optimism for future solar employment growth. Overall, respondents reported that they anticipate 17.2 percent employment growth over the next 12 months, representing an addition of 20,000 new solar workers. If the past is any indication, these growth numbers may be overestimates. However, they are a good predictor that the solar industry will remain on its upward growth trajectory.

A campaign is not a campaign without an opponent and some negative ads. Opponents of clean, renewable energy – chiefly those seeking to protect their market share – would likely try to claim that green jobs are a myth. Unfortunately for them, the facts support solar.

The National Solar Jobs Census 2012 measured employment growth in the solar industry between August 2011 and September 2012. While solar jobs grew by 13.2 percent during this period, employment in the overall economy grew at a rate of only 2.3 percent (BLS) and the fossil fuel electric generation industry actually lost jobs - shedding 3,857 workers, or 3.77 percent, of its workforce (EMSI).

This impressive job growth, combined with a 92 percent voter approval rating, make solar the kind of candidate we can all support. This includes the President as he begins his second term, and the new Congress as it members take office.

The full report can be downloaded here.

Lead image: solar panel with ratchet wrench via shutterstock.

7 Comments

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Jim Andre
Jim Andre
November 16, 2012
@dave, I'm not sure how that's in conflict with something I wrote. If you want to enhance climate change (warming), releasing additional carbon into the atmosphere (GHGs) is one way to do it. DG won't do that, bulldozing hundreds of thousands of acres of carbon-rich desert soils does. And many of the big solar projects use extensive amount of water, both for cleaning panels, and for generating steam (solar thermal)
Jim Andre
Jim Andre
November 16, 2012
A typical 5,000 ac solar facility located on public lands in the desert southwest employs 25-35 permanent employees, but these are taxpayer subsidized, and the solar facility itself (in combination with hundreds of others) destroys our natural heritage native ecosystems leading to species loss, public health problems, etc... Desert soils when bulldozed release as much carbon into the atmosphere (see studies by Allen, Schlesinger, etc...) than is offset by not burning coal. On the other hand, decentralized generation near the source of use of the same KW volume (rootops, parking lots, etc...) has been shown to create 4-10 times as many permanent jobs, while not killing off our ecosystems. The details matter, a lot. Big solar doesn't create jobs, it creates a mess. Decentralized solar is the way to go, and from every perspective.
John Nistler
John Nistler
November 15, 2012
Solar installations typically require a) Design of the system, b) actual purchase and transport of material, c) Installation and d) Electrician verification.

Thus the number of "solar jobs" does not represent the architects, truckers, inspectors and utility personnel involved. If you have 4 installers on the roof, there are at least 4 other people who had employment due to the installation.
Kimberly Davis
Kimberly Davis
November 15, 2012
Good discussion. Yes, more expensive energy = more jobs, which on its face is problematic. But solar provides not only the GHG benefit (pushed shockingly to the fore again with Sandy) - but as a renewable source, each solar system will still be generating clean energy long after the capital costs are recovered. Every kWh of electricity provided by burning coal is gone, and must be re-supplied with dirty methods, despoiling of the land, and unsafe worker conditions, over and over. While those beautiful solar panels just sit there generating power (with periodic inverter replacement), usually long past their design life.
V. Bruce Stenswick
V. Bruce Stenswick
November 15, 2012
doggydogworld is correct. What gets ignored in all of this discussion of jobs is climate change. If you are young and want a good job, train to become a civil engineer. We are going to need lots of civil engineers to futilely build dikes around our coastal cities. Somehow I think we are better off hiring solar installers now rather than civil engineers later.
DoggyDog World
DoggyDog World
November 14, 2012
What good are jobs 'created' by gov't spending or tax incentives? After all, the gov't could end unemployment tomorrow by hiring 5 million people to dig holes all day and another 5 million to fill them in at night. The numbers would look great. Re-election city! But overall we'd be worse off.

Solar installations are more useful than filled-in holes, of course, but 'jobs created' is still a poor metric. All else being equal, we want the technology which provides our electricity using the LEAST number of workers. "Solar eliminates 20,000 coal jobs while only hiring 13,872 new installers" would be good news. That's anathema to politicians, however, which is why we should keep them out of it as much as possible.
David Carl
David Carl
November 14, 2012
Installers jobs can't be outsourced. That is a good one. As the cost of installation becomes a higher and higher percentage of the final installed cost manufacturors will find ways to make it easier to install, thus reducing the need for installers.

We are in a slow growth environment where 150,000 new jobs a month is considered good while in past administrations it would be considered poor (horrible?). 13,872 jobs (a year) is better than no jobs but it is hardly cause for celebration.

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Andrea Luecke

Andrea Luecke

Andrea Luecke leads The Solar Foundation and is responsible for developing and implementing national educational initiatives and high-level research that promote the widespread adoption of solar energy. Ms. Luecke was instrumental in authoring...
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