The Clean energy industry is booming in the United States, creating hundreds of billions of dollars of economic activity. It is also poised for rapid growth over the next few years. Developing all of America’s abundant energy resources will ensure America’s position as a leader in clean energy. The Energy Department will continue to invest in strategic projects that will help make this a reality.
Jobs
Clean energy industry jobs include manufacturing, installing and servicing energy-saving products and services. According to the Bureau of Labor Statistics, there are 3.4 million jobs in the United States in this field. The BLS definition of clean energy goes beyond energy efficiency and includes work with energy-efficient buildings, vehicles, appliances, and equipment. It also includes smart grid technologies and energy storage.
The biggest decline in clean energy jobs was in the energy efficiency sector, which declined by 11% to 2,107,174 jobs in 2020. Despite this decline, energy efficiency is still the largest source of clean energy industry jobs. Workers in this segment include electricians, heating and cooling technicians, construction laborers, and factory workers who manufacture Energy Star appliances.
The clean energy industry is a growing industry with a high demand for workers. According to the American Clean Power Association, it could create 500,000 to 600,000 new jobs in the U.S. by 2030. Clean energy industry jobs are expected to pay higher than average. And, many of these jobs are in industries that are dominated by unions. For example, nearly eighty percent of solar and wind industry jobs will be in construction. And 16 percent of battery storage jobs will be in manufacturing. Both sectors have high unionization rates.
Jobs in the clean energy industry are growing at a rapid pace in Massachusetts. In fact, the state has become a hotspot for clean energy companies, with nearly half of all clean energy jobs related to retrofitting existing buildings. And Rhode Island’s solar industry is one of the fastest-growing in the country, employing 1,700 workers as of 2016. The state’s policy makers have created a favorable environment for clean energy development, and it is reflected in the number of clean energy jobs created in Massachusetts. However, the state has not yet experienced the same rate of growth in the high-risk cleantech space.
Sales
The American Rescue Plan (ARP) is helping communities build new clean energy industries and create new jobs. Recently, the Department of Commerce announced the finalists in its Build Back Better Regional Challenge competition, which funds regional clean energy and climate-related industry clusters. The 14 regional coalitions will each receive planning grants worth a total of $7 million. From there, they will compete for implementation awards of $25 million to $100 million.
Diversity
As the clean energy industry continues to receive investments and financing, it is vital to ensure that it is a diverse place to work. This includes including women, people of color, and people with disabilities. However, the current makeup of the clean energy workforce is less than representative of these demographics. While white workers make up a majority of the workforce, there are few minority groups among clean energy technicians and installers. The resulting lack of diversity could leave these groups behind in the clean energy transition.
The Energy Department and companies like Duke Energy have a responsibility to promote diversity in the industry. To do this, they are partnering with organizations that are dedicated to diversity and inclusion. For example, Duke Energy has a goal of having 25% women and 20% people of color in their workforce by 2025. The company has increased its diversity spending by $10 million a year and has formed partnerships with HBCUs.
The ACP recommends that companies working in the clean energy sector engage former fossil fuel workers and mobilize workforce development organizations. One example is Clearway Energy’s West Virginia Pilot Apprenticeship Program, which offers $20,000 to former coal workers in exchange for training and work experience.
Costs
The costs of renewable energy have been increasing for many years, and this trend is expected to continue. Clean energy projects such as solar panels, wind turbines, and biomass plants all require more up-front costs. These methods depend on raw materials such as silicon and copper, which are often expensive. The prices of solar panels have risen 19% in Europe in 2018 alone, although they remain about a third below the levels they reached five years ago.
Costs of renewable energy are hard to determine precisely, and vary widely depending on the source of energy and location. For example, new onshore wind turbines and large solar power plants cost an average of $46 per megawatt-hour (MWh), while new gas and coal-fired plants cost upwards of $74 per MWh.
But the cost of renewable energy plants has steadily declined since 2010, with the cost of solar panels falling by 13% last year and wind turbines falling by 11%. Meanwhile, the costs of offshore wind and geothermal energy also dropped. As a result, the costs of renewable energy plants are still significantly cheaper than fossil fuels, but the gap between them is growing rapidly.
Impact on California’s economy
The state’s growing clean energy industry can benefit California’s economy by creating new jobs and supporting economic growth. The state is a leader in climate change mitigation and clean energy, and the insights gained from this study will be crucial for state agencies to develop clean technologies and boost competitiveness. These insights will also help spur green business growth and job creation.
The state’s climate goals will benefit the economy, health, and environment. It will provide regulatory certainty for businesses, strengthen the economy, and improve public health. However, there are many hurdles along the way. These goals will require a large-scale shift in the state’s energy supply and use. The state must adopt new technologies to reduce its greenhouse gas emissions.
The state has abundant renewable energy resources and has pioneered several policies that have helped make it the renewable energy capital of the United States. In 2006, the state passed the Global Warming Solutions Act (AB 32), which mandates an aggressive reduction of greenhouse gas emissions. In 2011, Governor Brown signed Senate Bill X1-2, which expanded California’s Renewable Portfolio Standard to 33% by 2020. The state’s climate-change policies have helped to promote the development of solar PV electricity. But the state has yet to achieve its 2030 clean energy goal.
Impact on U.S. competitiveness
The US Department of Commerce has put forth a request for public comment on the impact of the clean energy industry on US competitiveness. The Clean Energy Technology Solicitation asks for responses to 16 broad questions. The data includes information on jobs, generation, and emissions. It also asks for input from interested stakeholders.
The energy industry plays a critical role in the global economy. Consumers and businesses are increasingly considering energy-efficient products and processes. Meanwhile, the energy industry itself is seeking innovative climate-friendly technologies and processes. This development stems from the long-term depletion of fossil fuels and public policy decisions aimed at reducing greenhouse gas emissions. As a result, markets in the energy sector are expanding rapidly.
Opportunities for people of color
The clean energy industry creates jobs and wealth and reduces the burden of energy on communities of color, which historically have faced environmental problems such as toxic dump sites, heat islands, and polluted air. Unfortunately, there aren’t enough opportunities for people of color to participate in this sector. According to a 2021 report, only six percent of workers in the clean energy industry in the United States are people of color. The industry also employs significantly fewer people of color than the rest of the economy.
The clean energy industry includes construction, utilities, manufacturing, professional services, and repair and maintenance. However, this industry is overwhelmingly white, and is often dominated by men. It is vital that we diversify this industry to represent our communities. This means promoting more apprenticeships and training programs and implementing prevailing wage protections.
The clean energy industry needs more women and people of color in leadership positions. Diversity initiatives must be part of a comprehensive strategy aimed at increasing the pipeline of women in the sector. In addition, employers must be responsible for recruiting and retaining workers from historically marginalized communities.
