US Solar Jobs Increase by 6% in 2023, According to Study by Reuters

The U.S. solar industry experienced a 6% increase in jobs last year, reaching nearly 280,000, marking the highest level on record, according to the National Solar Jobs Census released by the Interstate Renewable Energy Council.

Importance of the Growth

Solar electricity generation is one of the fastest-growing sectors of the U.S. energy market, driven by strong demand from both corporations and governments for cleaner energy sources to address climate change. The solar sector plays a significant role in President Joe Biden’s commitment to transitioning to carbon-free energy sources, which is expected to generate millions of quality jobs.

Last year, solar employment surged thanks to a rebound in utility-scale projects, aided by a decrease in supply chain disruptions and new incentives from the Inflation Reduction Act, passed in 2022.

Job Statistics

• U.S. solar jobs increased by 5.9%, reaching a total of 279,447 by the end of 2023.
• The utility-scale segment added 1,888 jobs, bringing its total to 29,708.
• Residential installations saw a rise of 5,945 jobs, totaling 100,815, which represents a 6.3% increase. However, this growth was slower than the 11% increase seen in 2022 due to high interest rates and reduced incentives in California affecting demand for rooftop installations.
• The manufacturing sector remained relatively stable with approximately 33,273 jobs, as companies producing components like inverters and racking are becoming more labor-efficient.

Future Outlook

According to the analysis, solar job growth in 2024 may plateau compared to last year. There has been a significant drop in residential installations this year, and utility-scale projects face several challenges, including lengthy grid connection waits and a shortage of skilled labor.