The latest solar jobs report from the European trade association SolarPower Europe (SPE) indicates that the European solar industry is undergoing a phase of adjustment: an estimated 40,000 jobs are expected to be lost in 2025. However, medium-term prospects suggest a return to growth starting in 2026, with employment projected to surpass 916,000 by 2029. These fluctuations reflect both the reality of slowing market growth and highlight the urgency for policy adjustments and industrial upgrading.
Market Cooling Puts Pressure on Employment
The report shows that the European solar industry was once the “strongest job engine” – a surge in installed capacity from 2022 to 2024 led to an “exceptional” expansion of the employment base. In 2024, the number of solar jobs increased by 5% year-on-year, far exceeding the 0.8% growth rate of the overall EU labor market, reaching a total of 865,000 jobs. However, growth momentum has significantly weakened. Installed capacity increased by only 3.3% in 2024, a sharp decline from the average annual growth rate of 30%-50% seen in the previous three years.
The employment contraction stems primarily from weakness in core sectors. Growth has stalled in the most “job-intensive” rooftop and residential markets, particularly in key markets like Germany. The decline in demand for residential PV in Germany in 2024 directly triggered a wave of corporate bankruptcies. SPE points out that the failure of policy frameworks to consistently attract investment, coupled with competitive pressures from global overcapacity, are key factors behind the industry’s setbacks.
Diverging Trends in Job Structure
In terms of job distribution, the industry remains dominated by the deployment segment: out of the total 864,000 jobs in 2024, 744,000 were concentrated in installation, reflecting the labor-intensive nature of solar projects. Operations and Maintenance (O&M) accounted for 66,000 jobs, while emerging fields like decommissioning and recycling provided 14,000 jobs. However, SPE predicts that the adoption of AI and automation technologies could further reduce demand for O&M roles.
Manufacturing has been the hardest hit by job losses. The manufacturing sector lost a cumulative 7,000 jobs between 2023 and 2024, with the module production segment suffering the most significant impact. Production halts by companies like Meyer Burger and Solarwatt directly led to losses in both capacity and employment. Although inverter production contributes about 80% of manufacturing jobs (approximately 32,000, an increase of 5,000 from 2023), leading German inverter companies like SMA have already initiated large-scale layoffs, reflecting the dual pressures of market weakness and price competition. Polysilicon production accounts for about 10% of manufacturing jobs and remains one of the relatively stable areas.
Policy Initiatives Expected to Activate Recovery
The report emphasizes that short-term setbacks do not mark the beginning of an industry decline. Solar and storage policies at the EU level are becoming key to recovery: the #SolarWorks platform promoted by SPE has already connected over 130 companies with job seekers and provides skills matching services. The “Reskill 4 NetZero” project, launching in 2025, will develop EU-recognized vocational training and certification systems to build talent pipelines for the industry.
These initiatives align with medium-term market demand. The report forecasts that, with the implementation of supportive policies and an increased supply of skilled talent, employment will begin to recover from 2026 onwards. By 2027, the European solar industry is expected to require a workforce in the millions to support the energy transition.
