Solar Power Europe reports that solar employment in the European Union grew modestly in 2024, reaching 865,000 full-time equivalent (FTE) jobs. This marks a 5 percent increase from the 826,000 FTEs recorded in 2023. Despite the growth, the sector is entering a period of transition as labour demand begins to reflect shifts in solar installation trends across the region.
In 2024, direct jobs in core solar activities such as manufacturing, project development and installation accounted for 377,000 FTEs, representing 44 percent of total solar employment. Indirect jobs supporting upstream and downstream sectors contributed 488,000 FTEs, making up 56 percent of the total.
A significant 744,000 FTEs, or 86 percent of all solar jobs, were linked to deployment activities. This underscores the sector’s strong dependence on continuous installation growth. While this dependence has fuelled rapid job creation during recent expansion cycles, it also exposes the workforce to fluctuations when deployment slows. Operations and Maintenance (O&M) accounted for 66,000 FTEs, or 8 percent of total employment, reflecting the ongoing rise in long-term service demand as installed capacity grows.
Manufacturing roles totalled 59,000 FTEs in 2024. Although manufacturing remains strategically important for EU energy independence, it faces challenges from international competition and supply chain pressures. The emerging segments of decommissioning and recycling present promising future job opportunities as Europe’s solar assets mature.
Among EU member states, Germany remained the largest source of solar employment, generating approximately 128,000 FTEs. However, this figure reflects a decline from the previous year. Spain followed with 122,000 FTEs, maintaining strong workforce levels despite minor dips in installations. Italy saw notable expansion in its solar labour market, surpassing 100,000 workers and becoming the third-largest employer in the EU solar sector. Other key contributors included Poland (90,000 FTEs), France (66,000 FTEs), Romania (62,000 FTEs) and Hungary (47,000 FTEs). As expected, the largest solar markets also serve as the strongest employment hubs.
Looking ahead, forecasts indicate a temporary reduction in solar employment in 2025 as the EU solar market experiences a mild contraction. Under the Medium Scenario, jobs are expected to fall by 5 percent, reaching 825,000 FTEs. However, from 2027 onward, employment is projected to rise steadily in line with renewed growth in PV installations. By 2029, EU solar employment could recover to 916,000 FTEs under the Medium Scenario and reach up to 1.1 million FTEs under the High Scenario.
The evolving landscape reflects a sector adjusting to new market realities. Factors such as the slowdown in residential solar, reduced national incentives and the inadequate development of flexibility solutions are influencing workforce dynamics. Sustained growth in solar employment will rely on the industry’s ability to adapt business models, strengthen the value chain and secure supportive regulatory frameworks.
Addressing the skills gap remains a critical priority. EU-funded initiatives such as RESkill4NetZero aim to build a skilled solar and renewables workforce. The programme is developing cross-renewables training frameworks to standardise competencies across technologies and support long-term workforce development.
Baburajan Kizhakedath