NATIONAL SOLAR JOBS CENSUS 2012

Courtesy of DOE/NREL

Consistent, Steady Growth

Despite facing a sluggish economy, trade disputes, and political uncertainty, the U.S. solar industry continued its unabated growth in 2012, creating jobs at a faster rate than the overall economy and most other sectors for the third consecutive year. As of September 2012, the solar industry employs 119,016 solar workers - defined as those workers who spend at least 50% of their time supporting solar-related activities. This represents a 13.2% growth in the solar workforce from revised figures for 2011. Of the nearly 14,000 jobs created in 2012, 86% of them are new jobs, rather than existing positions that have added solar responsibilities.

The solar industry’s growth is especially impressive given that the 12-month growth rate for the entire U.S. economy was only about 2.3%, which suggests that 1 out of every 230 new jobs in the U.S. economy was created in the solar industry this past year. During the same period, the fossil fuel electric generation industry shed 3,857 jobs, a decline of 3.77%.

What the Future Holds

Unlike other sectors of the economy, solar companies remain optimistic about the future, and this optimism is reflected in the rapid expansion of the solar workforce. Over the next 12 months, almost 45% of solar firms expect to add jobs, while fewer than 4% anticipate cutting workers. By contrast, the current estimate is that the overall economy will grow only 1.5% in 2013 (EMSI Complete Employment 2012.3).

In 2012, some of the leading drivers of growth were the continued decline in component prices, followed by state legislation enacting Renewable Portfolio Standards or authorizing third-party system ownership, and federal tax incentives.

According to the U.S. Department of Energy, if costs continue to fall, approximately 340,000 solar workers will be needed to support increased installation demand by 2030.

Image courtesy of DOE/NREL

The National Solar Jobs Census series is a product of The Solar Foundation, an independent 501(c)(3) nonprofit organization committed to supporting growth in the solar industry through high-level research and education. First conducted in 2010, the Census surveys solar employers and quantifies solar jobs across all solar technologies and industry subsectors. Our inaugural Census established the first credible employment baseline for the domestic solar industry. Since this industry continues to undergo a period of rapid evolution and growth, The Solar Foundation has found it critical to update its data annually. Census 2012 represents the third annual installment of current employment figures and projected growth in the United States solar industry. Based on our three years of research, we have found that solar employment has grown 27% since 2010, making it one of the fastest job creation industries in America.

THE SOLAR FOUNDATION

505 9th Street NW, Suite 800 Washington, DC 20004 (202) 469-3750 www.TheSolarFoundation.org

Other Key Findings from Census 2012

Eighty-nine percent of those who meet our definition of a “solar worker” (those workers who spend at least 50% of their time supporting solar-related activities) spent 100% of their time working on solar.

Nearly fifty-three percent of all firms generate revenue exclusively from solar installations.

Of the 15,000 solar establishments in the U.S., 87.2% work with photovoltaics (PV) (including those that work with multiple technologies).

Employers are increasingly less likely to span several subsectors, suggesting that firms are beginning to specialize.

New positions for 2012 include a diverse range of skill sets. The largest category of jobs can be found in production and technical positions, followed by management, administrative, and sales.

Employers prefer word of mouth and referrals to fill positions – not online job postings and print advertisement.

Employers reported that newly created jobs are generally not entry-level positions. Most require at least some work experience related to the position, and a surprisingly large number require a college degree.

The majority of installation companies (over 6,500) are quite small, employing only 2 to 3 solar workers.

Seventy-five percent of manufacturers produce PV systems or supply components for PV manufacturers. This figure is up from 59% in 2011.

The full Census 2012 can be downloaded for free at: http://thesolarfoundation.org/research/national-solar-jobs-census-2012

Subsector 2010 Jobs 2011 Jobs

(Revised)

2012 Jobs 2011 - 2012

Change in

Employment

2011 - 2012

Growth Rate

2013

Projected

Employment

2012 - 2013

Expected

Growth Rate

Installation 43,934 48,656 57,177 8,521 17.5% 68,931 21%

Manufacturing 24,916 37,941 29,742 (8,199) (21.6%) 32,313 9%

Sales and

Distribution

11,744 13,000 16,005 3,005 23.1% 19,549 22%

Project

Development

-- -- 7,988 7,988 -- 9,098 14%

Other 12,908 5,548 8,105 2,557 46.1% 9,551 18%

Total 93,502 105,145 119,016 13,872 13.2% 139,442 17%

Downstream Growth Offsets Upstream Losses

Census 2012 shows that solar companies across all subsectors (except for manufacturing) increased their workforce. Installation firms are by far the largest sector of the solar industry, employing 57,177 solar workers. Installers produced more new jobs than any other subsector in 2012, more than offsetting declines in manufacturing. Installation jobs grew by 17.5% in 2012 and are expected to grow by an additional 21% in 2013, reaching a total of 68,931 workers in the upcoming year – almost half the total solar workforce. Over the last 12 months, solar manufacturing jobs decreased by roughly 8,000 workers (21% decrease), though they are set to rebound in 2013 with an expected growth rate of 9%. Since September 2011, sales and distribution jobs continued their rapid growth, increasing by 23.1%. The “other” subsector also saw substantial growth – though it stems from a much smaller base. It appears that lower component prices may have hindered manufacturers this year, while simultaneously helping to spur much of the downstream job growth.