PVTIME – SolarPower Europe (SPE), the leading European solar trade association, has released new employment data indicating that the continent’s solar industry is undergoing a period of adjustment. While the sector is expected to lose 40,000 jobs by 2025, it is predicted to resume growth the following year, with employment set to exceed 916,000 by 2029. This shift reflects a cooling market and highlights the need for policy adjustments and industry upgrades.
The report notes that the solar sector was once Europe’s strongest job creator. Surging installations between 2022 and 2024 drove exceptional employment growth, with 2024 seeing a 5% year-on-year rise in jobs, which far outpaced the 0.8% growth of the EU labour market, reaching 865,000 roles. However, momentum has since faded, with installation growth slowing to just 3.3% in 2024, representing a sharp drop from the 30% to 50% annual increases seen in the previous three years.
Job losses mainly stem from weakness in key areas. The rooftop and residential solar markets, which are among the most labour-intensive segments, have stagnated, particularly in major markets such as Germany, where a slump in home solar demand in 2024 triggered business failures. SPE identifies two main issues: policy frameworks that fail to sustain investment, and competitive pressure from global overcapacity.
Job distribution shows that deployment remains the sector’s backbone. Of the 865,000 jobs in 2024, 744,000 were in installation, reflecting the labour-intensive nature of solar power. Operations and maintenance accounted for 66,000 roles, while emerging areas such as decommissioning and recycling added a further 14,000 jobs. However, SPE warns that AI and automation could further reduce demand for operations and maintenance roles.
Manufacturing has been hit hardest. Between 2023 and 2024, the sector lost 7,000 jobs, with module production suffering the most. Plant closures at firms such as Meyer Burger and Solarwatt cut capacity and employment. However, while inverter manufacturing grew by 5,000 roles to 32,000 in 2024, accounting for 80% of solar manufacturing jobs, major German inverter maker SMA and others have launched large-scale layoffs, highlighting market weakness and price competition. Polysilicon production, accounting for 10% of manufacturing jobs, is one of the few stable segments.
The report stresses that short-term struggles are not a sign of industry decline. EU solar and storage policies are key to recovery. SPE’s #SolarWorks platform already connects over 130 companies with job seekers and matches workers to skills training. The Reskill 4 NetZero programme, which is set to launch in 2025, will establish EU-recognised vocational training and certification systems to develop a talent pipeline.
These measures align with medium-term market demand. The report predicts that employment will rebound from 2026 onwards and that, by 2027, Europe’s solar sector could require more than a million workers to support its energy transition.
Scan the QR code to follow PVTIME official account on Wechat for latest news on PV+ES
, the leading European solar trade association, has released new employment data indicating that the continent’s solar industry is undergoing a period of adjustment. While the…){kind=link}