Europe's Solar Sector Braces for First Job Loss in a Decade
The solar sector in Europe, once a robust job creator, is facing a setback. Despite being the continent's leading job engine in recent years, it's projected to lose around 5% of its jobs in 2025, the first decline in nearly a decade. This downturn is expected to result in approximately 40,000 job losses, reducing the total from around 865,000 to about 825,000.
The slowdown in the rooftop and residential sector is the primary cause for this job loss. Despite this, the inverter and polysilicon production sectors remain strong, accounting for 80% of manufacturing jobs in Europe. However, the module production sector has seen significant job losses, with companies like SolarWorld and REC Group exiting the European solar module production scene in the past two years. The manufacturing sector alone lost 2,000 full-time jobs in 2024, with most losses occurring in this sector.
The solar sector's employment base grew remarkably in 2022-2024, with most jobs being in deployment roles. Around 744,000 out of 864,000 total jobs in 2024 were in deployment. However, policy frameworks that fail to attract solar investment and meet consumer demand, along with global production overcapacity, have contributed to these job losses.
While the solar sector is expected to recover from 2026 onwards, with employment projected to reach over 916,000 jobs by 2029, the job losses in 2025 are a significant setback. The sector's resilience will be tested in the coming months, and policy makers and industry leaders will need to work together to mitigate these losses and ensure a sustainable future for the solar sector in Europe.
