2. Acknowledgements:
The Solar Foundation® (TSF) is a national 501(c)(3) nonprofit organization whose mission is to
increase understanding of solar energy through strategic research that educates the public and
transforms markets. In 2010, The Solar Foundation® released its first National Solar Jobs Census
report. Census 2010 established the first credible national solar jobs baseline and verified the
positive impact the solar industry is having on the U.S. economy. Using the same rigorous, peerreviewed methodology, TSF has conducted an annual Census in each of the last three years to
track changes and analyze trends in the solar industry labor market.
!
This year s National Solar Jobs Census report series was produced by TSF and BW Research
Partnership, with the support of the following research partners:
• The George Washington University’s Solar Institute (GW Solar Institute);
• The Solar Energy Industries Association (SEIA); and
• The Interstate Renewable Energy Council, Inc. (IREC).
!
TSF would like to acknowledge and thank its sponsors. Without their foresight and leadership, this
report would not have been possible:
• William and Flora Hewlett Foundation;
• Energy Foundation;
• Tilia Fund;
• SolarCity;
• Sierra Club;
• Recurrent Energy;
• GTM Research and SEIA for providing complimentary copies of the U.S. Solar Market
Insight 2012 Year in Review report to survey respondents; and
• Cornell University’s School of Industrial Labor Relations for helping to validate the
methodological framework for Census 2010-2012.
!
TSF and BW Research also want to thank all of the California solar employers that participated in
the survey. Your responses were critical in providing us with the high level of accurate and timely
data needed to produce this report.
!
For questions or comments about this report, please contact either:
!
Andrea Luecke, President and Executive Director
The Solar Foundation®
505 9th Street, NW - Suite 800 Washington, DC 20004
202-469-3750; info@solarfound.org
TheSolarFoundation.org
!
Philip Jordan, Principal and Vice-President
BW Research Partnership
50 Mill Pond Dr. Wrentham, MA 02093
(508) 384-2471; pjordan@bwresearch.com
!
Please cite this publication when referencing this material as “California Solar Jobs Census 2013,
The Solar Foundation, available at: www.TSFcensus.org.”
Cover Photo Courtesy First Solar
2
3. About The Solar Foundation®
The Solar Foundation® (TSF) is an independent national 501(c)(3) nonprofit whose
mission is to increase understanding of solar energy through strategic research that
educates the public and transforms markets. TSF is considered the premier research
organization on the solar labor force, employer trends, and economic impacts of solar. It
has provided leading-edge industry insight to the National Academies, the Inter-American
Development Bank, the U.S. Department of Energy, and other organizations during a time
of dynamic industry growth and policy and economic uncertainty.
While TSF recognizes that solar energy is a key part of our energy future, it is
committed to excellence in its aim to help people fairly and objectively gauge the value of
the solar industry worldwide.
About BW Research Partnership
BW Research is widely regarded as the national leader in labor market analysis for
emerging industries and clean energy technologies. In addition to the Census series, BW
Research has conducted rigorous solar installation and wind industry labor market
analysis for the National Renewable Energy Laboratory, wind energy and energy retrofit
studies for the Natural Resources Defense Council, a series of comprehensive clean
energy workforce studies for the Commonwealth of Massachusetts, Illinois, and Vermont,
and numerous skills and gap analyses for community colleges, workforce investment
boards, state agencies, and nonprofit organizations.
BW Research provides high quality data and keen insight into economic and
workforce issues related to renewable energy, energy efficiency, transportation, recycling,
water, waste, and wastewater management, and other environmental fields. The principals
of the firm are committed to providing research and analysis for data-driven decisionmaking.
About The George Washington University Solar Institute
The George Washington University Solar Institute (GW Solar Institute) is a unique
research and information center focused on identifying, developing, and sharing
pragmatic and politically attuned solutions to the policy barriers preventing the adoption
and scale of solar energy. Toward these ends, the GW Solar Institute pursues research
projects in a wide range of disciplines, typically in partnership with other university
faculty, industry experts, and GW students. In addition, the GW Solar Institute also
leverages its intricate knowledge of the policymaking process and location in Washington,
DC to convene stakeholders and provide decision-makers with unbiased new ideas on
solar related policies, regulatory approaches, and government investments.
3
4. 1. Introduction
The U.S. solar industry had a banner year in 2013. Solar installations expanded at a record
pace, companies became more efficient and workers more productive, and jobs grew by their
fastest rate since The Solar Foundation® began tracking them in 2010. The national industry
employs 142,698 solar workers1 across the entire spectrum of the value chain—from research
and development through installation and maintenance, and in every state. Market indicators
and employers’ reported optimism suggest that the industry will continue adding jobs at a brisk
pace.
The solar industry is poised to continue to be more efficient—worker productivity increased
by 21.5% between 2012 and 2013, as measured by installation-related jobs per megawatt—and
to provide new employment opportunities, particularly in the installation sector. After record
19.9% employment growth since September 2012, employers expect to grow their workforce by
15.6% over the next year. These projections, if realized, would result in an additional 22,240
new solar jobs across the U.S.
Figure 1: California Regional Solar Employment
1
A “solar worker” is defined as an employee who spends at least 50% of their time supporting solar-related
activities. The national Census found that approximately 91% of those meeting our definition of a “solar worker” in
2013 actually spent 100% of their time working on solar.
4
5. The success of California’s solar industry is both a reflection and vital component of the
growth observed at the national level. As of November 2013, 47,223 solar workers were
employed in the state across all industry sectors, with the majority concentrated in the San
Francisco Bay area and in Southern California (see Figure 1 on p. 4). Employers of these workers
are optimistic about growth, more so than those throughout the nation as a whole. Forty-nine
percent of solar employers in California expect to add employees this year, with a total of 10,500
new solar workers (22.3% growth) added by November 2014.
California’s success in solar employment is unsurprising given its status as the market leader
in solar energy. The first to adopt pro-solar policies, California has served as an incubator for the
industry for decades. Its early support is paying dividends, as California is home to more than
40% of the over 10,000 MW of total installed capacity in the country, and account for one-third
of all solar workers in the nation.
In their most recent Solar Market Insight report, Solar Energy Industries Association and GTM
Research estimate that more than 2,000 MW of new PV capacity were installed in California
during 2013, more than double what was added in the previous year. In 2014, nearly 400 MW of
concentrating solar power (CSP) capacity—enough to power 140,000 households—is expected
to come online from the world’s largest CSP facility, located in California. The state is expected to
remain the national leader in solar energy installed capacity for the foreseeable future, with
current Solar Market Insight forecasts predicting an additional 10,000 MW of PV capacity over
the next three years.2
Photo Courtesy NREL
2
Kann/ GTM Research, S., Mehta/ GTM Research, S., Shiao/ GTM Research, M., Honeyman/ GTM
Research, C., Litvak/ GTM Research, N., Jones/ GTM Research, J., . . . Baca/ SEIA, J. (2013). Solar Market
Insight 2013 Q3 | SEIA. Retrieved from http://www.seia.org/research-resources/solar-market-insight-2013-q3!
5
6. Figure 2: Installed Solar Capacity—California
Annual(Solar(Power(Capacity(Installa8ons,(2006=2013(
2500"
2000"
Addi8onal(CSP(Expected((Q4(2013)(
Concentrated(Solar(Power((MW=ac)(
Megawa&s(
(
Addi8onal(PV(Expected((Q4(2013)(
1500"
Photovoltaics((MW=dc)(
1000"
500"
0"
2006"
2007"
2008"
2009"
2010"
2011"
2012"
2013"
Source:"SEIA"and"GTM"Research,""Solar"Market"Insight""report"series;"Larry"Sherwood,"IREC"
Much of the success of California’s robust solar market—indeed, of most leading state solar
markets in general—can be attributed to a suite of strong solar-friendly policies. The state is
noteworthy for having one of the most aggressive renewable portfolio standard (RPS) targets (33%
of retail electricity sales derived from renewable technologies by 2020), and recently passed
legislation allowing the California Public Utilities Commission to require retail sellers of
electricity to procure renewable energy resources in excess of this limit.3 In an effort to help
utilities covered by the RPS achieve this target, California adopted a limited feed-in tariff program
in 2008, which has continually been expanded through subsequent legislation leading to its
current iteration—under which customers across a large number of sectors are eligible to
participate.4
Another powerful driver of growth in solar capacity in the state has been the California
Solar Initiative (CSI), a statewide solar rebate program established in 2007 with the goal of
adding 1,940 MW of new installed capacity by 2016.5 As of the end of January 2014, nearly
1,700 MW of solar capacity had been installed under the program, with both the residential and
3
California State Assembly (n.d.). Bill Text - AB-327 Electricity: natural gas: rates: net energy metering: California
Renewables Portfolio Standard Program. Retrieved from California Legislative Information website: http://
leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201320140AB327.
4 California Public Utilities Commission (2012). Summary of Feed-In Tariffs. Retrieved from http://
www.cpuc.ca.gov/PUC/energy/renewables/feedintariffssum.htm.
5 California Public Utilities Commission (2007, July). About the California Solar Initiative. Retrieved February 6,
2014, from http://www.cpuc.ca.gov/puc/energy/solar/aboutsolar.htm.
6
7. !
non-residential programs fully subscribed in the Pacific Gas & Electric (PG&E) territory and all of
Southern California Edison’s (SCE) residential program cap met.6 Over much of the past two
years, CSI-supported installations represented between 75%-97% of the state’s quarterly installed
residential capacity, dipping below 50% only as program caps were met in the aforementioned
territories in the last half of 2013.7
Despite its historical importance, however, the growth of the solar market remains strong
even as the availability of the CSI rebates continues to wane. State policy allowing third-party
ownership of solar energy systems remains a key component of the residential solar market’s
sustained growth—one indicator of which is the increasingly rapid adoption of solar by middleincome households.8 In just two years, these systems went from representing just under half of
new residential installations (44.6% in Q3 2011) to 70% of systems installed in this market
segment by Q3 2013.9 In addition, both residential and non-residential installations throughout
the state continue to benefit from the confluence of high retail electricity rates, existing federal
incentives, and a renewed near-term commitment to net energy metering.10
Methodology
The data in this report are collected from a census of the solar industry and a representative
sample of employers throughout the value chain of activities that contribute to the industry. As
with the National Solar Jobs Census, this report includes information about all types of
companies, from component manufacturers to installation subcontactors, engaged in the
production, sale, installation, and use of all solar technologies, ranging from PV to CSP to solar
water heating systems across the residential, commercial, and utility market segments in
California.
Unlike economic impact models that generate employment estimates based on economic
data (such as company revenue) or jobs-per-megawatt (or jobs-per-dollar) assumptions, the
National Solar Jobs Census series provides statistically valid and current data gathered from
actual employers. The primary data contained in this report are drawn from a mixed-method
6
Go Solar California (2010). California Solar Statistics. Retrieved February 6, 2014, from http://
www.californiasolarstatistics.org/reports/agency_stats/; Go Solar California (2010). Statewide Trigger Point
Tracker. Retrieved February 6, 2014, from http://csi-trigger.com/.
7 Kann/ GTM Research, S., Mehta/ GTM Research, S., Shiao/ GTM Research, M., Honeyman/ GTM
Research, C., Litvak/ GTM Research, N., Jones/ GTM Research, J., . . . Baca/ SEIA, J. (2013). Solar Market
Insight 2013 Q3 | SEIA. Retrieved from http://www.seia.org/research-resources/solar-market-insight-2013-q3.
8 Center for American Progress. (2013). Solar Power to the People: The Rise of Rooftop Solar Among the Middle
Class. Retrieved from http://www.americanprogress.org/wp-content/uploads/2013/10/RooftopSolar-4.pdf.
9 Kann/ GTM Research, S., Mehta/ GTM Research, S., Shiao/ GTM Research, M., Honeyman/ GTM
Research, C., Litvak/ GTM Research, N., Jones/ GTM Research, J., . . . Baca/ SEIA, J. (2013). Solar Market
Insight 2013 Q3 | SEIA. Retrieved from http://www.seia.org/research-resources/solar-market-insight-2013-q3.
10 Id.
7
8. !
survey administered directly to employers. Data collection occurred during October and
November 2013 in two stages: (1) through a survey of so-called “known universe”
establishments, and; (2) via a random sampling of businesses within various construction, sales
and distribution, and manufacturing industries.
For this California report, 28,382 telephone calls were attempted and over 4,000 emails
were sent to potential solar establishments throughout the state. This mixed approach, which the
Bureau of Labor Statistics recognizes as the emerging standard11 given its own limitations in
calculating solar employment, allows us to draw broad conclusions about the California solar
industry with a high degree of confidence, as well as generate accurate, local level employment
estimates. Nearly 4,000 California employers participated in the survey, resulting in 674 full
survey completions and a margin of error of +/-3.46%, which is more rigorous than the industry
standard for similar studies.
Because of the strict definitions and quality control measures used for Census data
collection and analysis, the figures included in this report are conservative estimates, meaning
that there may well be more solar workers than reported herein. It is also important to mention
that there are limits to the survey approach. Because the research findings are based on survey
responses, the employment growth figures cited in the following sections represent employers’
best estimates of how many jobs they will add over the coming year. As seen in the National
Solar Jobs Census reports, actual growth may vary.
In addition, this report includes employment and demographic information at the state
assembly, state senate, and federal congressional district levels. Conducting small-sample
estimation is a very challenging and labor-intensive exercise. For this study, a significant
oversample of California firms was required to gather enough responses to make estimates for 80
assembly districts, 40 state senate districts, 53 congressional districts, and five Metropolitan
Statistical Areas. Analysis of the data collected through this effort includes constructing zip-code
distribution allocations for each district in the known and unknown databases, small-area means
derivation, and comparisons to labor market statistics and demographic data. The results of this
work are included in the tables in Section 3.
!
11
Based on conversations with BLS staff working in September 2010.
8
9. 2. Labor Market Analysis: Overview of the Industry
The California solar industry employs 47,223 solar workers,12 more than five times the
number of workers in Arizona, the next largest solar employer. The industry continues to grow
rapidly, by approximately 8.1% since 2012, representing the addition of about 3,500 jobs. This is
nearly five times faster than the statewide growth rate of 1.7%13 and means that the industry
created nearly nine jobs each day in California from September 2012 to November 2013.
These strong growth figures are expected to accelerate through 2014, with nearly half of all
employers expecting to add employees by November 2014 (48.8%) and only 1.2% expecting to
shed workers (Figure 3).
Figure 3: Employer Expectations, 12 Months—California
Same number
42.7%
More
48.8%
Fewer
1.2%
DK/NA
7.3%
!
When asked about their prospects for the 12 month period through November 2014,
employers reported an expectation to add employees at a 22.3% clip. If these projections are
realized, it would mean the addition of 10,510 solar jobs. This anticipated growth represents an
astounding 47% of all new jobs projected to be created in the industry nationwide over the same
time period.
12
In California, 93.5% of solar workers spend 100% of their time supporting solar activities (compared to 91%
nationally).
13 California Employment Development Department, California Current Month Labor Force, Seasonally Adjusted,
October 2012-November 2013.
9
10. By way of comparison, statewide job growth is projected to be 1.1% through 2014.14 For
additional comparison, the construction industry is projected to remain flat, while manufacturing
is projected to cut 2% of its workforce. The fastest “Supersectors”15 in the state (Professional,
Scientific, and Technical Services, Healthcare and Social Assistance, and Educational Services
(Private)) are each projected to grow by between 2-3%.16
For this survey, employers were asked several preliminary screener questions to ensure
quality control and to understand how establishments are organized and which activities they
conduct. As in the National Solar Jobs Census 2013, California survey respondents were asked to
select the appropriate sector to which their firm belongs, choosing from installation,
manufacturing, sales and distribution, project development, academic, nonprofit, government, or
- for those that did not fit neatly into a category - “other,” such as establishments that provide
ancillary support to the solar industry (e.g., research and development, financial or legal
services). Many establishments reported that their work spanned several sectors.
Figure 4: Percentage of Respondents by Sector
15.5%
Installation
9.5%
Sales / Trade
5.4%
0.3%
2.2%
0.0%
Manufacturing / Assembling
Project Development
Nonprofit
Academic
11.8%
Government
Other (Including R&D)
54.0%
1.3%
Don't know
14
Economic Modeling Specialists, Inc. (EMSI), Class of Worker, 2013.4
Bureau of Labor Statistics (2003, October 27). NAICS Supersectors. Retrieved February 6, 2014, from http://
www.bls.gov/ces/cessuper.htm.
16 EMSI, Class of Worker, 2013.4
15
10
11. Table 1: Data by Sector—Number of Solar Workers in California
Sector
2013 Jobs
2014 Projected
Employment
2013 - 2014 Expected
Growth Rate
Installation
26,052
33,716
29.4%
Manufacturing
10,504
11,262
7.2%
Sales and Distribution
5,877
6,975
18.7%
Project Development
2,369
2,744
15.8%
Other*
2,421
3,036
25.4%
Total
47,223
57,733
22.3%
*2013 employment in “Other” includes 66 solar workers at nonprofits, 132 in government, and 17 in academia.
The state’s solar installation and manufacturing sectors account for a higher percentage of
total California solar workers than are represented at the national level. California’s 26,052
installation workers represent 55.2% of the 47,223 workers employed statewide. At the national
level, however, the installation sector accounts for only 48.8% of all solar workers. The
manufacturing sector’s 10,504 workers constitute 22.2% of the state total, versus 20.9% of all
solar workers at the national level. The remaining sectors in California represent a relatively
smaller proportion of total solar workers than were found at the national level. Only 12.4% of
solar workers in the state are employed in sales and distribution, compared with nearly 14% at
the national level. State level employment in the project development and “other” sectors are
both at about 5%, versus 8.5% and 7.9%, respectively, nationwide.
As with the rest of the nation, California is primarily focused on photovoltaics (85.5% of
establishments work with PV), while significantly fewer firms are engaged in water heating
(24.1% versus 32.7% nationally, Figure 5).
!
!
11
12. Figure 5: Solar Establishments by Technology Area
85.5%
Photovoltaic
24.1%
Water heating, which includes pool heating
Concentrating solar power
10.5%
Other
11.1%
3.9%
DK/NA
0%
20%
40%
60%
80%
100%
Survey respondents were also asked to provide the percentage of overall revenues that are
attributable to solar, to determine how integral the industry is to their business and whether they
are diversified in other sectors. California is nearly identical to the national averages, with 66.5%
of establishments deriving a majority of their revenues from solar goods and services, compared
to 65.2% nationally, though the number of firms that receive all of their revenue from solar is
more than four percentage points higher in California (48.4%) than the national average of
44.0% (Figure 6).
Figure 6: Company Revenues Attributed to Solar
80%
60%
48.4%
40%
30.6%
18.1%
20%
2.9%
0%
All of it (100%)
Most but not all (50% to 99%)
Less than half (1% to 49%)
DK/NA
12
13. As in the National Census, California employers were asked specific questions to determine
whether the new solar workers added over the past year were newly created positions or
represented existing employees given new solar tasks. In California, 72.2% of the new solar jobs
over the past year were newly created positions (Figure 7).
Figure 7: New Positions at Solar Establishments
Newly created
positions
72.2%
Existing
employees given
added solar
responsibilities
27.8%
To get a better understanding of the types of workers being hired, employers were asked
questions about the education and experience of the more recently hired solar workers at their
firms. California establishments reported slightly lower education and experience requirements,
with 40.9% requiring previous work related to the position (versus 50.2% nationally) and 25.4%
requiring a bachelor’s degree (27.6% nationally). Perhaps as a nod to the state’s well-respected
community college system, a slightly higher percentage of workers are required to have an
associate’s degree or certificate (15.4% versus 13.1% nationally).
13
14. Figure 8: Background of Newly Hired Solar Worker - Percent of Workers
Required previous work experience
related to the position
40.9%
Required a bachelors degree or
beyond
25.4%
Required an associates degree or
certificate from an accredited college,
but not a bachelor's degree
15.4%
0%
20%
40%
60%
80%
The new solar positions for 2013 are distributed across a range of skill-sets. Compared to
the rest of the country, new solar positions in California are much more likely to be for
production or technician jobs (66.1% versus 55.4% nationally), with fewer administrative (7.2%
versus 10.3% nationally) and management/professional (7.9% versus 12.0%) positions.
Figure 9: New Positions by Occupational Category, 2012–2013
14
15. Employers were also asked about the wages paid to their workers. California solar
installation firms pay their employees an average of $24.26, which is $0.63 per hour more than
the national average among solar firms in this sector. However, this difference is much less than
the difference in wages paid to electricians and other construction related workers in California
(versus the national average), who are paid $2 to $4 per hour more. California solar
manufacturers pay their assembly workers a mean wage of $18.84 per hour, some $0.61 per
hour more than the national average for solar manufacturing firms, and significantly higher than
the $14-17 per hour paid for most assembly occupations in California.17
California solar firms were also asked to provide a demographic profile of their workforce,
with a particular focus on women, racial and ethnic minorities, and U.S veterans. Because of the
sensitive nature of these questions, the survey was careful to avoid social obligation bias;
however, as documented by survey experts, some bias in such questions is inevitable. As a result,
it is likely that the figures reported below are inflated by some 10 to 15%. Despite this, the results
presented in Figure 10 do provide a general understanding of the demographic makeup of the
industry and a baseline from which to track progress in future Census reports and comparisons to
national industry data.
As Figure 10 illustrates, the California solar industry is generally diverse.
Figure 10: Demographic Breakdown - Overall
17
EMSI Class of Worker, QCEW, Non-QCEW, Self-Employed, 2013.4.
15
16. 2.1 Detailed Labor Market Analysis: Installation
This California-specific research effort includes responses from thousands of firms in the
construction, installation, and maintenance sector. Based on the responses, our Census found
2,067 establishments deriving at least some of their revenue from installation services and related
goods, employing 26,052 solar workers. This makes the installation sector the largest single
segment of the solar industry in California, responsible for 55.2% of all solar workers in the state.
The California installation sector is important to the national solar industry as well, as 37.4% of
all U.S. solar installation workers are found in the Golden State.
Optimism among California installers suggests that growth will continue over the shortterm. Forty-eight percent of solar installation firms expect to add workers over the next 12
months (compared to 44% nationally), representing 7,664 new solar workers (a 29.4%
employment growth rate) (Figure 11). These projected new solar workers represent 52.2% of the
national projections for the sector.
Figure 11: 12-Month Hiring Expectations—Installation Establishments
Same number
43.8%
More
47.9%
Fewer
0.8%
DK/NA
7.4%
The California installation workforce is somewhat diverse. Over 17% of California
installation solar workers are Latino/Hispanic and nearly 15% are women. U.S. veterans
represent 7.4% of all solar workers in the state. Just over 5% are African Americans and nearly
4% are Asian/Pacific Islanders.
!
!
!
16
17. As shown in Figures 12 and 13 below, photovoltaics dominate the California installation
landscape, while most firms are installing for the residential market.
Figure 12: Percentage of Firms by Technology—Installation
100%
90.8%
80%
60%
40%
30.3%
20%
6.1%
6.1%
Concentrating
solar power
Other
2.8%
0%
Photovoltaic
Water heating,
which includes
pool heating
Don't know/
Refused
Figure 13: Percentage of Firms by Project Size—Installation
86.8%
Residential systems
Small commercial systems up to 50
kilowatts
66.3%
Medium to large commercial and
industrial systems
43.9%
Large commercial and industrial 201
kilowatts or larger
27.9%
Utility scale projects that deliver
wholesale electricity
12.9%
0%
20%
40%
60%
80%
100%
17
18. As in the National Census, the California data reveal a sector that is highly focused on
consumer demand. Eighty-five percent of respondents in this sector attribute consumer demand
to solar’s increased competitiveness with incumbent electricity providers (compared to 77%
nationally), as seen in Figure 14 below.
Figure 14: Consumer Demand Drivers—Installation
69.3%
To save money
Solar energy costs are now more competitive
with utility
15.6%
To benefit the environment and mitigate
climate change
5.9%
They know a neighbor, friend, or family
member who installed solar
2.5%
To have power when the grid goes down
0.3%
To make America more energy independent
0.3%
Other
2.8%
DK/NA
3.4%
0%
20%
40%
60%
80%
Installers were also asked about their opinions regarding lower-cost, internationally
produced solar goods from countries such as China. As illustrated in Figure 15, installers are
evenly split as to whether low cost manufacturers benefit the solar industry as a whole.
Figure 15: International Manufacturing Impacts—Installation
Low cost international
manufacturers in places like China,
lowers costs, benefits solar industry
as a whole
39.7%
39.1%
21.2%
Low cost international
manufacturers in places like China,
putting U.S. out of business, hurts
solar industry as a whole
DK/NA
!
18
19. 2.2 Detailed Labor Market Analysis: Manufacturing
This Census finds 336 solar manufacturing establishments in California, employing 10,504
solar workers. Manufacturers remain optimistic about future employment growth. Fifty-five
percent of firms expect to add solar workers over the coming 12 months (Figure 16), and the
sector is projected to grow by 7%.
Figure 16: Growth Projections, 12-Month—Manufacturing
Same number
32.8%
More
54.7%
Fewer
1.6%
DK/NA
10.9%
Nationally, manufacturers are the most diverse of all sectors. In California, women
represent 23.1% of all solar workers, 18.0% are Latino/Hispanic, 3.5% are African Americans,
12.3% are Asian/Pacific Islanders, and 6.0% are U.S. veterans.
Manufacturers are predominantly producing components for photovoltaics, with about
three-quarters of establishments engaged in PV, compared with only 15% in water heating and
10% in CSP (Figure 17).
Figure 17: Establishments by Technology Type—Manufacturing
100%
80%
74.6%
60%
40%
30.5%
15.3%
20%
10.2%
1.7%
0%
Photovoltaic
Water heating,
which includes
pool heating
Concentrating
solar power
Other
Don't know/
Refused
19
20. Solar manufacturers in California are diversified, with about two-thirds earning most of their
revenue from solar goods and services (Figure 18). They are also most concerned about
international competition; however, more than one-third believe such competition is good for the
industry (Figure 19).
Figure 18: Percentage of Revenue Related to Solar Products—Manufacturing
18.6%
All of it (100%)
30.5%
Most but not all (50% to 99%)
Less than half (1% to 49%)
45.8%
DK/NA
5.1%
!
Figure 19: International Manufacturing Impacts—Manufacturing
47.5%
35.6%
16.9%
Low cost international
manufacturers in places like
China, lowers costs,
benefits solar industry as a
whole
Low cost international
manufacturers in places like
China, putting U.S. out of
business, hurts solar
industry as a whole
DK/NA
!
20
21. 2.3 Detailed Labor Market Analysis: Sales and Distribution
California is home to 535 solar sales and distribution establishments, employing 5,877 solar
workers. The employers in the solar sales and distribution sector sell all types of systems and play
a pivotal role in the solar supply chain. These establishments work in wholesale and retail trade
of components and finished products.
The majority of sales and distribution companies deal in PV systems, with only 15.4%
providing solar water heating equipment and 11.5% focused on CSP (Figure 20).
Figure 20: Percentage of Establishments by Product Sales—Sales and Distribution
The sales and distribution sector is much more solar-focused in California than the national
average, with 68.3% of firms earning all of their revenues from solar, compared to 52.8%
nationally (Figure 21).
Figure 21: Percentage of Revenue Related to Solar Products—Sales and Distribution
All of it (100%)
12.5%
Most but not all (50% to 99%)
68.3%
17.3%
Less than half (1% to 49%)
DK/NA
1.9%
21
22. Solar sales and distribution establishments are very optimistic, with 63.5% expecting to add
workers over the coming 12 months (compared to 55.3% nationally) and only 1% expecting to
shed jobs (compared to 2% nationally (Figure 22), which is in line with estimates for continued
strong sales of solar goods and services over the coming year.18 This optimism is expected to
create nearly 1,100 jobs through November 2014, which represents 18.7% growth in the sector
statewide.
Figure 22: 12 Month Hiring Expectations—Sales and Distribution
!
Women make up 22.2% of the California sales and distribution workforce, while Latino/
Hispanics represent 21.1%. Asian/Pacific Islanders comprise 11.4% of the sector, while 4% of the
workers are African Americans. Veterans make up 6% of the sector.
!
18
IHS Inc. (2013, December 18). IHS News Flash: Solar Market Predictions for 2014 | IHS Online Pressroom.
Retrieved from http://press.ihs.com/press-release/design-supply-chain/ihs-news-flash-solar-marketpredictions-2014; Osborne/ PV Tech, M. (2014, January 22). ROTH Capital raises 2014 global solar market
demand outlook - PV-Tech [Web log post]. Retrieved from http://www.pv-tech.org/news/
roth_capital_raises_2014_global_solar_market_demand_outlook.
22
23. 2.4 Detailed Labor Market Analysis: Project Developers!
!
This California Census report finds 132 project developers in the state that employ 2,369
solar workers. These firms are generally optimistic about growth, with 42% expecting to add
workers and only 3% expecting to cut staff. The 375 projected new workers to be added by
November 2014 represent 15.8% employment growth.
Figure 23: 12 Month Hiring Expectations—Project Developers
Same number
44.4%
More
41.7%
Fewer
2.8%
DK/NA
11.1%
Women make up 22.6% of the project developer workforce; Latino/Hispanics, 19.8%;
Asian/Pacific Islanders, 11.8%; and African Americans, 3.8%. Six percent of the sector’s workers
are veterans.
PV remains the largest technology category that developers work with, though one third of
firms in this sector report working with CSP (Figure 24).
Photo Courtesy NREL
23
24. Figure 24: Percentage of Establishments by Technology—Project Development
Project developers are slightly more “solar focused” than workers in other sectors, though
still only 55.6% report that all of their revenue is derived from solar projects, as illustrated in
Figure 25.
Figure 25: Percentage of Revenue Related to Solar—Project Development
60%
55.6%
40%
22.2%
22.2%
20%
0.0%
0%
All of it (100%)
Most but not all
(50% to 99%)
Less than half
(1% to 49%)
DK/NA
24
25. 2.5 Detailed Labor Market Analysis: Other
A significant number of the solar establishments participating in this study did not identify
with any of the specific sectors already described in this report.19 These establishments, which
have been grouped into an “other” category, include those engaged in research and
development, finance and accounting, legal work, or other ancillary services that support the
solar industry. This category includes those working in government, nonprofit, and academic
institutions.
Though none of these additional solar sectors were large enough from an employment
perspective to warrant a dedicated category, the establishments classified as “other” collectively
employ more than 2,400 solar workers. These “other” establishments have indicated that they
anticipate strong growth over the coming 12 months – adding more than 615 new jobs at an
employment growth rate of 25.4%. Thirty-four percent of survey respondents in this category
expect to add solar workers by November 2014 (Figure 26).
Figure 26: 12 Month Hiring Expectations—Other
Same number
59.5%
More
34.2%
Fewer
0.0%
DK/NA
6.3%
Though about 40% of the employers in this category described their firm as being a
100% solar-related business, this category has the highest percentage of establishments
(39%) that obtain less than half their revenue from solar work (Figure 27). This is expected
for a segment of the industry that often provides supporting services (such as consulting,
finance, etc.) and is therefore more likely to contain firms that offer services to a wide
range of industry sectors.
!
19
Nor were they specifically targeted.
25
26. Figure 27: Percentage of Revenue Related to Solar Products—Other
15.2%
All of it (100%)
39.2%
Most but not all (50% to 99%)
Less than half (1% to 49%)
40.5%
DK/NA
5.1%
Photo Courtesy SolarCity
26
27. 3. Geographic Data
In addition to the statewide results, this report includes information about the distribution of
solar workers across the state. To accomplish this, the state was broken into six major regions,
Southern California (including San Diego, Orange, and Los Angeles counties and their outlying
areas); the Inland Empire, the Central Coast, the Greater San Francisco Bay Area (including San
Jose and the Silicon Valley), Greater Sacramento, and all other. The Greater San Francisco Bay
Area is home to 45.9% of the state’s solar workers (21,653), followed by Southern California at
21.2% (10,002), as illustrated in Figure 28.
Figure 28: Regional Solar Employment
Greater Bay
Area
45.9%
Sacramento
6.6%
Central Coast
6.2%
Inland Empire
9.4%
Southern CA
21.2%
All other
10.8%
27
28. Within these broad regions are six major metropolitan areas. Table 2 illustrates the
employment in each of these regions.
Table 2: Metropolitan Statistical Area
Metropolitan Statistical
Area
Jobs
Percent of Total Solar Jobs
in California
2013 - 2014 Expected
Growth Rate
San Francisco-OaklandFremont
12,840
27%
18.3%
Los Angeles-Long BeachSanta Ana
8,087
17.1%
37.9%
San Jose-Sunnyvale-Santa
Clara
3,156
6.7%
28.0%
Sacramento-Arden-ArcadeRosevill
3,034
6.4%
32.2%
Fresno
1,296
2.7%
11.6%
The data also include information about each legislative district in California, including the
state assembly and senate districts and the federal congressional districts, presented in the tables
and maps below.
28
38. Congress.
District
44
45
46
47
48
49
50
51
52
53
Total
% of Total
CA Solar
Workforce
Legislator
Hahn, Janice
Campbell, John
Sanchez, Loretta
Lowenthal, Alan
Rohrabacher,
Dana
Issa, Darrell
Hunter, Duncan D.
Vargas, Juan
Peters, Scott
Davis, Susan
Total
Empl.
Women
African
Latino/
American Hispanic
98
1201
174
346
485
19
241
33
67
96
5
47
9
16
20
1351
977
246
676
325
47223
271
140
45
136
67
10605
22.5%
52
40
13
26
11
1821
3.9%
Veterans
35
395
64
122
165
Asian/
Pacific
Islander
6
82
10
22
32
444
227
95
221
102
9525
20.2%
92
38
14
47
23
5508
11.7%
77
94
13
39
19
2834
6.0%
5
69
9
19
27
38
39. 4.0 Conclusions
With California’s status as the nation’s most populous state, its largest economy, and
second-largest consumer of electricity, it comes as no surprise that energy concerns are of great
and recurring importance to the Golden State. As part of its efforts to ensure the energy needs of
its residents and businesses are adequately addressed, California has adopted a suite of
oftentimes bold or innovative policies that have allowed it to attain another important status – the
nation’s market leader in solar energy. The state’s more than 4,000 MW of cumulative installed
solar capacity (over 40% of total solar capacity in the nation) has translated into an employment
boom that continues to create new opportunities for workers still grappling with an
unemployment rate higher than the national average.
California is by far the leader in solar jobs. However, its 47,223 solar workers are not
evenly distributed across the state, but are rather concentrated in regions where demand for solar
energy is high and where solar business owners are more likely to establish a new location or
company headquarters. For example, the Greater San Francisco Bay area is home to nearly half
of California’s solar workers, though the region makes up only 22% of the state population.
Though the region is home to some of the highest incomes in the state, solar is increasingly
becoming adopted by those with more modest incomes, suggesting that the relative wealth in the
area alone is insufficient to fully explain the high concentration of solar workers. A more likely
driver of solar employment in the region is that the Greater San Francisco Bay Area, which
combines the economic and technological strength of San Francisco, Oakland, and the Silicon
Valley, has all the components necessary for a successful innovation economy, including access
to high skilled labor, capital, technology, and supporting services (e.g., financial and legal).
California’s solar market is expected to continue its impressive growth. Over the next three
years, nearly 10,000 MW of additional solar photovoltaic capacity is expected to be installed in
the state. This projected growth in installations will in turn have a substantial impact on the
number of Californians employed by the solar industry. Over the 12 month period ending in
November 2014, solar employers anticipate adding over 10,500 solar workers, a figure
representing 22.3% growth in employment compared with the 47,223 solar workers currently
employed in the state.
As is the case with other strong state solar markets and the nation at large, much of
California’s solar success has been due to its historically robust pro-solar policies. Its
combination of RPS targets, net energy metering rules, effective statewide and local incentives,
and policies allowing for innovative financing models to prosper—along with existing federal
policies and incentives supporting solar—have long been drivers of growth for the state’s solar
industry. While some of these policies will soon expire, the state appears to be exploring the
continuation and adoption of policies the industry needs to continue to grow.
39
40. !
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If you find this California Census to be useful, please don't hesitate to make a taxdeductible donation to The Solar Foundation®. Each donation, no matter the size, helps
us provide credible research that deepens our understanding of the industry and drives
the market.
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!
More information at www.TheSolarFoundation.org
40
41. !
5. Appendices
5.1 Data Sources
!
EMSI Data Sources and Calculations
Industry Data
!
In order to capture a complete picture of industry employment, EMSI basically combines covered
employment data from Quarterly Census of Employment and Wages (QCEW) produced by the
Department of Labor with total employment data in Regional Economic Information System
(REIS) published by the Bureau of Economic Analysis (BEA), augmented with County Business
Patterns (CBP) and Nonemployer Statistics (NES) published by the U.S. Census Bureau.
Projections are based on the latest available EMSI industry data, 15-year past local trends in each
industry, growth rates in statewide and (where available) sub-state area industry projections
published by individual state agencies, and (in part) growth rates in national projections from the
Bureau of Labor Statistics.
!
State Data Sources
!
This report uses state data from the following agencies: California Labor Market Information
Department;
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41
42. 5.2 Data Limitations and Methodology
The California Solar Jobs Census methodology is most closely aligned with the
Bureau of Labor Statistics’ methodology for its Quarterly Census of Employment and
Wages (QCEW) and Current Employment Statistics (CES). Like BLS, this study uses survey
questionnaires and employer-reported data, though ours are administered by phone and
email, as opposed to mail.
!
Also like BLS, we develop a hierarchy of various categories that represent solar
value chain activities (within their broader NAICS framework), develop representative
sample frames, and use statistical analysis and extrapolation in a very similar manner to
BLS. We also constrain our universe of establishments by relying on the most recent data
from the BLS or the state departments of labor, depending on which is collected most
recently. We believe that the categories that we have developed could be readily adopted
by BLS should it choose to begin to quantify solar employment in its QCEW and CES
series.
!
The California survey was administered to a known universe of solar employers
that includes approximately 4,000 establishments and is derived from SEIA’s National
Solar Database as well as other public and private sources. Of these establishments, 852
provided information about their solar activities (or lack thereof), and 476 completed full
or substantially completed surveys.
!
The survey was also administered to a stratified, clustered, random sampling from
various industries that are potentially solar-related that include a total of 25,149
establishments in California. After an extensive cleaning and de-duplication process, a
sampling plan was developed that gathered information on the level of solar activity
(including none) from 2,889 establishments. Of these, 125 establishments qualified for
and completed full surveys. This level of sampling rigor provides a margin of error for
establishment counts at +/-1.25% and employment at +/-3.46% at a 95% confidence
interval. For a more complete description of the methodology, please see the National
Solar Jobs Census 2013 available at www.TSFcensus.org.
!
It is of further importance to note that the figures provided in this report are estimates
based on surveys administered only to employers in installation, manufacturing, sales and
distribution, project development and “other” establishments in research and
development, legal services, finance and accounting, academia, government agencies,
nonprofit organizations, and other ancillary employers that do solar work. Data for the
“other” category do not capture all jobs or establishments in the category. Although some
“other” establishments are included in the Known Universe, accounting, legal, finance,
and other ancillary establishments spend only a very small portion of their time on solar
activities. Thus, full inclusion would lead to inflated employment counts.
42
43. 5.3 Frequently Asked Questions
1.
Are these "Direct Jobs" only?
Direct, indirect, and induced are terms intended to explain the various levels of
economic activity that result from changes to an economy. These figures, generated by
economic modeling exercises, are best applied to specific projects rather than entire
industries. For example, a utility scale solar project would have a certain number of
people working on the construction of the plant (direct), the workers who manufacture
and deliver the goods (indirect), and support the local economy by increasing the
spending on goods and services, such as restaurants, gas stations, and retail
establishments (induced). Census data includes most of the direct and indirect jobs in the
solar industry, with the exception of some indirect jobs in the component and materials
supply chain.
2.
How does your methodology compare with the Bureau of Labor Statistics?
The Census methodology is the most closely aligned with the Bureau of Labor
Statistics’ methodology for its Quarterly Census of Employment and Wages (QCEW) and
Current Employment Statistics (CES). Like BLS, this study uses survey questionnaires and
employer-reported data, though ours are administered by phone and email, as opposed to
mail. Also like BLS, we develop a hierarchy of various categories that represent solar
value chain activities (within their broader NAICS framework), develop representative
sample frames, and use statistical analysis and extrapolation in a very similar manner to
BLS. We also constrain our universe of establishments by relying on the most recent data
from the BLS or the state departments of labor, depending on which is collected most
recently. We believe that the categories that we have developed could be readily adopted
by BLS should it choose to begin to quantify solar employment in its QCEW and CES
series.
3.
How is a solar worker defined?
A "solar worker" is defined as those workers who spend at least 50% of their time
supporting solar-related activities. This definition helps to avoid the over-counting that is
inherent in methods that count every single job in terms of FTEs or job hours. For
example, although the BLS does not yet quantify solar jobs, they count other types of
occupations by counting every single job separately regardless of hours or fraction of time
actually spent on the job. As a result, according to the BLS, someone with three part-time
jobs yields three jobs. Although the BLS and others consider our methodology to be the
emerging standard for tracking jobs they do not yet track, critics of our methodology claim
a 50% definition causes jobs to be over counted. However, the reality is that 93.5% of
those in California who meet our definition of a solar worker in 2013 (versus 91%
nationally), actually spend 100% of their time supporting solar-related activities. Because
the Census covers sectors directly related to new installed solar capacity and the sectors
that support these efforts, jobs figures are best thought of as covering direct and indirect
jobs.
43
44. 4.
What is the minimum education necessary to enter the solar job field?
While there exist entry-level positions for individuals interested in entering certain
solar job fields, there is not always an immediate pathway into these jobs. Of the
employers who participated in the California Solar Jobs Census, 41% indicated that they
look for previous related experience in the solar workers they hire. In addition, over 15%
noted they require at least an associate’s degree or certificate from an accredited college
and one quarter seek workers with a bachelor’s degree or beyond. Those interested in
beginning a career in the solar industry can learn more about the education, experience,
and skills required for these jobs by visiting the U.S. Department of Energy’s Solar Career
Map at http://www1.eere.energy.gov/solar/careermap.
!
!
!
More FAQs about the Census methodology and national results are available in the
National Solar Jobs Census 2013, available at www.TSFcensus.org.
!
!
44
45. !
6. Solar Employment in Other States
Due to the immense investment of time and funding required to do so accurately
with a survey-based methodology, the Census report series does not directly provide
estimates of solar employment in each of the 50 states. In early 2013, The Solar
Foundation® published its first-ever State Solar Jobs Map (www.solarstates.org), an
interactive, web-based tool presenting the most credible estimates of state-level jobs
currently known. These figures were internally generated by The Solar Foundation® with
technical assistance from the Solar Energy Industries Association’s Research Department
using thousands of data points from a combination of high-quality sources, including
survey results from National Solar Jobs Census Series and the Solar Energy Industries
Association’s “National Solar Database.”
These state employment figures were produced using a carefully developed dual
methodology—one for installation and construction jobs and another for distributed
generation and non-installation jobs. In brief, method one employed labor intensity
multipliers developed internally and cross checked with leading studies on the subject,
while method two was based not only on a direct count of solar workers, but also the
average number of jobs per solar establishment and total number of establishments in
each state. The final state totals provided are the rounded average of our high and low
estimates.
Updated state-level employment estimates were made available through The Solar
Foundation’s® State Solar Jobs Map website (www.solarstates.org) on February 11th,
2014.
!
45
46. !
Copyright Notice
!
Unless otherwise noted, all design, text, graphics, and the selection and arrangement
thereof are Copyright February 2014 by The Solar Foundation® and BW Research
Partnership. ALL RIGHTS RESERVED. Any use of materials in this report, including
reproduction, modification, distribution, or republication, without the prior written
consent of The Solar Foundation® and BW Research Partnership, is strictly prohibited.
!
!
Please cite this publication when referencing this material as “California Solar Jobs Census
2013, The Solar Foundation, available at: www.TSFcensus.org.”
