Solar Industry Sees Strong Job Growth in 2023 Amid Record Capacity Expansion

The U.S. solar industry witnessed remarkable job growth in 2023, adding over 15,000 jobs and setting a new record for solar capacity expansion, according to the latest Solar Jobs Census.

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The U.S. solar industry continued its impressive trajectory in 2023, adding 15,564 jobs, a 5.9% increase over the previous year, bringing the total to 279,447 workers. This marks the highest number of solar jobs since the Solar Jobs Census began in 2010. Solar jobs grew in 47 states, with some of the most significant gains in Florida, Texas, Arizona, and Nevada, reflecting the nationwide expansion of solar energy. In total, 454,000 people worked in either solar energy or clean energy storage, underscoring the industry’s pivotal role in the U.S. clean energy transition.

The 2023 Solar Jobs Census, conducted by the Interstate Renewable Energy Council (IREC) and BW Research, highlighted key industry trends and challenges. The report is based on surveys with over 10,000 energy firms as part of the U.S. Department of Energy’s United States Energy & Employment Report. For the first time, it also incorporated a qualitative study featuring anonymous interviews with industry leaders, offering insights into workforce development, diversity, and the broader sector challenges.

Record Solar Capacity Growth

One of the major highlights of 2023 was the record-breaking growth in solar capacity. The U.S. added 40.3 GW of new solar power, a 76% increase compared to 2022. This made solar the fastest-growing source of electricity in the country, accounting for 55% of all new electricity-generating capacity added during the year. For context, natural gas added 17%, emphasizing solar’s dominance in the new energy landscape.

This rapid expansion was largely driven by utility-scale projects, which grew by 6.8% and added 1,888 new jobs. After overcoming supply chain bottlenecks and trade disputes that hampered installations in 2022, utility-scale solar saw its largest annual increase ever, doubling its capacity to 30.2 GW. The sector’s turnaround was boosted by the resolution of module supply issues and the impact of favorable policies such as the Inflation Reduction Act (IRA).

Residential Solar Faces Mixed Results

While the residential solar market remained a crucial driver of solar jobs, its growth rate slowed in 2023. The sector added 5,945 jobs, marking a 6.3% increase but a slowdown from the 11% growth in 2022. Installations hit a record 6.9 GW, but the market faced challenges, particularly in the fourth quarter when installations dropped by 16%. Higher interest rates made solar panels less attractive for some consumers. California’s changes to net energy metering policies led to a significant slowdown in the state's installations, affecting the overall market.

Despite these headwinds, residential solar remains a major source of employment. In 2023, over 100,000 workers were employed in this segment, performing roles ranging from installation and sales to project management.

Manufacturing and Supply Chain Challenges

Solar manufacturing in the U.S. saw a slight increase in jobs, although the sector remains heavily reliant on imports. Domestic solar module production nearly doubled to 15.5 GW in 2023, spurred by IRA incentives encouraging U.S.-based manufacturing. However, most solar panels were still imported, mostly from Cambodia, Malaysia, Thailand, and Vietnam.

Manufacturing jobs were largely flat, with a slight decline of 200 positions, but the sector could see a surge in the coming years as new U.S.-based manufacturing facilities come online. Companies like Qcells and First Solar are expanding their operations, and new factories in Georgia, Ohio, and Louisiana are expected to boost domestic production, creating thousands of jobs significantly.

The Road Ahead for Solar Employment

The Solar Jobs Census shows that the U.S. solar industry has matured into a mainstream power source, providing high-quality jobs across all 50 states. However, challenges remain, particularly regarding workforce development. As solar deployment continues to grow, the industry faces a shortage of skilled workers to meet demand. Also, interconnection delays and ongoing trade disputes could hinder continued growth.

The industry is set to benefit from long-term incentives provided by the IRA, which are expected to drive the steady development of solar projects for years to come. With utility-scale solar leading the way and residential solar continuing to provide robust job opportunities, the future of solar employment in the U.S. looks bright, even as the industry navigates evolving challenges.

The solar industry’s role in reducing energy costs, mitigating climate change, and supporting the U.S. clean energy transition remains pivotal, making it a cornerstone of the nation’s broader renewable energy strategy.

Environment + Energy Leader