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You are here: Home / Energy Access / Creating an inclusive and equitable solar energy industry 

November 20, 2024

Creating an inclusive and equitable solar energy industry 

Solar energy is one of the main vehicles through which the U.S. is driving its transition to a clean energy-based economy. 

Last year, the U.S. Energy Information Administration estimated that the domestic solar industry would boom by 75% between 2023 and 2025, up to 286 billion kWh. This is due to the growing number of solar projects in the country – there are currently at least 6,960 major solar projects in operation, in development, or under construction, according to the Solar Energy Industries Association. 

As the industry continues to grow, a key part of its expansion must be creating an equitable market and inclusive solar energy workforce. Like many industries in the U.S. solar energy faces challenges regarding systemic racism and gender inequity, ones that both the federal government and industry groups are working to tackle. 

When it comes to gender inclusion, the solar industry is currently made up predominantly of men. According to the 2022 Solar Jobs Census from the Interstate Renewable Energy Council, women make up only 31% of the solar workforce, compared to roughly 47% of the national workforce.

The Interstate Renewable Energy Council’s Solar Jobs Census also found that 73% of workers in the industry are white, compared to 9% of workers who are Black and 22% who identify as Hispanic or Latino. 

Conversely, wages across racial demographics in the study were more equitable. The median wage for Black workers in solar energy was $33.26, compared to $26.51 for white respondents. Despite such examples however, the industry still has much work to do to become more equitable and inclusive. 

There are multiple key groups working on this issue, such as Black Owners of Solar Services, a community of Black American entrepreneurs, developers, and others working in the clean energy sector. The organization helps individuals and Black-owned businesses navigate funding for clean energy projects and works to bring together collective knowledge and create more opportunities for diverse solar energy businesses. 

At the federal level, the Department of Energy has been working to provide greater funding for minority-owned businesses to get involved in the solar energy industry, particularly since the passage of the Inflation Reduction Act. 

For example, in February 2023, the department offered Black Owners of Solar Services a $6.3 million grant to “regional effort to coordinate and train minority-owned businesses on how to apply for DOE funding and access DOE programs, benefits, services and opportunities,” according to an announcement of the funds. 

This spring, the Department of Energy also launched the Upskill Prize for the Solar Energy Manufacturing Workforce. The grant program offered a total of $5 million in funding meant for companies to use to create training programs for both new and existing workers. For new workers, programming was focused particularly on skills needed to work at new or expanding solar manufacturing facilities. Winning applicants could receive up to $500,000 in funding to help establish training programs. 

At the local level, groups like Solar Austin are working to bring more women and people of color into the clean energy workforce beginning at the student level. The organization created the Pathways to Clean Energy Careers program to place students from underrepresented groups in structured internships at solar and other clean energy companies. The grant-funded program recruits companies to engage to hire and mentor paid interns. 

For minority-owned businesses that also qualify as small businesses, the Biden administration has recently been working to expand lending opportunities. In May, the Small Business Administration removed the cap on SBA 504 loans of $5.5 million for “energy public policy projects.” 

Previously, businesses were limited to three loans for a max of $16.5 million, but the change means companies may secure as many loans as they can qualify for. 

As the solar industry continues to grow in the U.S., it will require effort and coordination at the local, state, and federal level, as well as collaboration from private companies and industry groups, to continue to make the industry and workforce more inclusive and accessible for all populations. 

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Filed Under: Energy Access, Energy Markets, Renewable Energy Tagged With: Energy Markets, Environmental Justice, Renewable Energy, Solar City

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