In recent years, the solar sector has become a significant source of jobs for the European Union. The solar industry has experienced steady and solid growth, adding more energy generation capacity than any other technology and creating hundreds of thousands of meaningful jobs.

Solar energy in Europe has provided a tangible way to directly engage in the renewable energy-driven energy system, delivering competitive, affordable, and secure energy, along with future-proof jobs.

During the energy crisis years, solar energy accelerated its growth to reduce reliance on Russian gas and protect EU citizens from rising energy prices.

In 2023, the European solar sector grew beyond previous annual growth levels of 40%, achieving an extraordinary 50% growth and setting a new record with 61 GW of annual installations.

At a time when other industries were struggling to hire skilled workers, solar energy reached new heights thanks to workers flocking to the sector, attracted by demand and a sense of purpose.

While the number of jobs in the solar sector in the EU surged until a few months ago (by the end of 2023, 826,000 people were employed, a 27% increase from the previous year), this situation has drastically changed.

For 2024, we expect very slow growth in solar installation capacity, with only about a 5% increase, reaching around 64 GW of new solar energy in the EU. As a result, the solar labor market will stagnate, and the number of jobs is likely to increase by less than 1%.

The report analyzes the state of solar jobs in the EU in 2023 and outlines workforce growth projections through 2028.

To ensure that the solar workforce remains prepared to deliver the continent’s primary decarbonization tool during the second half of the decade, the EU Solar Jobs Report makes a series of policy recommendations.

Executive Summary

Employment in solar energy in the EU has been steadily increasing in recent years, and this trend continued in 2023, with job creation rising by about a third, thanks to large ongoing projects and strong demand for products triggered by the energy crisis.

However, this rapid growth will come to a sudden halt in 2024 due to changing market conditions.

By the end of 2023, the solar sector employed 826,000 full-time equivalent (FTE) workers in the European Union. Of these, 362,000 FTEs were direct jobs, representing 44% of the total, while the remaining 464,000 FTEs (56%) were indirect jobs (fig. 1).

The number of workers in the EU solar sector saw a notable increase compared to the previous year, driven by a strong growth in the EU solar market, which grew by 50% year-on-year to 60.9 GW.

Since jobs in solar energy deployment constitute the dominant share of total solar jobs, this was reflected in a 28% increase in solar jobs across the EU.

Compared to previous years, most jobs in the solar industry were even more concentrated in the deployment phase, representing 715,000 FTEs, or 87% of total jobs (see figure 1).

The strong growth in installed solar capacity in recent years also boosted operation and maintenance activities, which generated 61,000 jobs, representing 7% of the total by the end of 2023.

In contrast, the EU manufacturing sector experienced several closures and job cuts due to intense international competition, resulting in a 5% share and 43,000 FTEs, an 11% decrease compared to 2022 levels.

Finally, due to the long lifespan of solar modules, with performance guarantees of about three decades, jobs in decommissioning and recycling remained a small component, accounting for less than 1% of total employment.

When looking at job creation by country, Germany leads the European Union with approximately 154,000 direct and indirect FTEs, representing a 19% share (Fig. 2).

The growth in solar jobs in Germany is a direct result of the expansion of the photovoltaic market, with the country installing 15.0 GW, a 104% increase from 2022. Poland ranks second with 113,000 direct and indirect FTEs.

Most of the largest photovoltaic markets in Europe, including Spain, Italy, Romania, the Netherlands, and France, are among the top 7 contributors. While companies in Spain generated 91,000 jobs, Italy employed 76,000, Romania was responsible for 55,000, the Netherlands for 48,000, and France for 45,000 FTEs.