Renewable Energy in the Inland Empire

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1 Renewable Energy in the Inland Empire Employment Outlook and Workforce Implications Center of Excellence, Desert & San Diego/Imperial Regions Evgeniya Lindstrom, Director Prepared upon request for Mt. San Jacinto College April 20, 2011

2 This report represents a compilation of data from various studies and reports on the topic, including the Green survey conducted by the California Employment Development Department s Labor Market Information Division (EDD LMID), the Labor Market Survey of the Inland Empire businesses conducted by ERISS, Inc. and commissioned by the Riverside and San Bernardino Counties, as well as various Center of Excellence (COE) Environmental Scan studies. Since multiple data sources were used, the numbers presented here may vary significantly due to different methodologies and definitions of industries utilized. Renewable Energy Employers According to the 2010 survey of the Inland Empire businesses, 269 out of 978 businesses (27.5%) reported that they were a part of the Renewable Energy Cluster. However, the actual number of employers involved in renewable energy is much larger, as the firms surveyed represented only a fraction of all businesses in the targeted industry segments, with an estimated universe of 6,486. Industry Profile Firms that are engaged in renewable energy technologies in the Inland Empire belong to one or more of the following industry clusters: Solar Energy- Firms engaged in the development, manufacturing, installation and servicing of solar energy technology. Wind Power- Firms engaged in the maintenance and operation of wind farms as well as manufacturers of wind turbines. Geothermal- Includes firms that are developing and manufacturing geothermal power systems as well as geothermal power plants. Other Renewable Energy- Includes firms engaged in biofuels development, hydro-electric and other renewable energy services. Figure 1 shows the distribution of the Inland Empire renewable energy businesses across traditional industry segments. The industries that these firms associate with include the following: Merchant Wholesalers, Durable Goods Construction, including Specialty Trade Contractors and Construction of Buildings Professional, Scientific, and Technical Services Product Manufacturing Figure 1 Traditional Industries for Renewable Energy Firms in the Inland Empire Merchant Wholesalers, Durable Goods 3% 13% 3% 4% 8% 14% 25% 30% Specialty Trade Contractors Professional, Scientific, and Technical Services Construction of Buildings Truck Transportation Plastics and Rubber Products Manufacturing Fabricated Metal Product Manufacturing Other Map in Appendix A shows the distribution of the renewable energy firms across the Inland Empire region s territory. Centers of Excellence Page 2

3 Industry Employment Due to limitations of available labor market data on renewable energy, which is not classified as a separate industry by the North American Industry Classification System (NAICS), the employment estimates and projections are not readily available. Thus, this report will reference several different sources of data for both industry employment and occupational employment Inland Empire Business Survey According to the ERISS survey, companies in the Inland Empire that indicated that they were a part of the renewable energy cluster (n=269) account for current employment that falls within the estimated range between 9,000 and 16, This employment includes all positions in renewable energy businesses, including those that are not directly involved with installing, manufacturing, or servicing renewable energy technologies. Again, this is a lower level estimate as it only includes the firms that participated in the survey, not all renewable energy firms in the region. EDD s Labor Market Information Division G.R.E.E.N. Survey Newly released data from the California s EDD LMID estimated that the number of green jobs in the Inland Empire region exceeds 21,200, accounting for approximately one-fifth of the green employment in Southern California. However, using LMID s classification and survey data, the region s renewable energy employment ( G ) is estimated to account for only 600 direct jobs. 2 Although this estimate seems to be on a lower side, it is important to note that this number only counts those employees who work 50 percent or more with renewable energy ( G ) technologies. San Bernardino County 10% Riverside County 9% Figure 2 - Number of Employees That Work 50% Orange County 17% or More in G.R.E.E.N. Ventura County 5% G: Generating and storing renewable energy R: Recycling existing materials E: Energy efficient product manufacturing, distribution, construction, installation, and maintenance E: Education, compliance, and awareness N: Natural and sustainable product manufacturing Los Angeles County 59% Table 1 Distribution of G.R.E.E.N. Employment across sectors (Note that numbers might not add up due to rounding) How many employees Green Jobs: work 50 percent or Total Share of G R E E N Other Total more of their time in Employment Total this Category? Employment Riverside County 208 3,764 4,440 1, , , % San Bernardino County 394 2,797 1, , , , % Inland Empire Total 602 6,560 5,862 2,186 6, ,266 1,003, % Source: EDD-Labor Market Information Division, Green Survey, May 2009-January Labor Market Survey of Businesses in San Bernardino and Riverside Counties, ERISS, Inc., December California s Employment Development Department, Labor Market Information Division, Green Survey Results for Southern California, April Centers of Excellence Page 3

4 Employment Growth Projections Industry employment growth in renewable energy sectors in the Inland Empire region will be driven by the construction of the utility-scale renewable energy power plants, primarily those that use solar thermal technology. According to the Center for Energy Efficiency and Renewable Technologies (CEERT) research, there will be at least 2,500 new jobs created during the construction stages of four (4) solar power plant projects in the next 3.5 to 6 years. Upon the completion of the construction of the power plants, there will be over 540 jobs available in operation and maintenance of the four solar power plants. 3 Table 2 Projected Employment for Four Utility-Scale Solar Projects in the Inland Empire Construction Jobs, Maintenance & Ave/Month Operations Jobs (~3.5-6 years) (~25 years) Riverside & San Bernardino Counties: 4 Solar Projects 2,000 MW Source: CEERT, , Another growing renewable energy sector in the Inland Empire is wind energy. Most of the wind energy jobs will not be in the construction of new wind farms but rather in upgrading the old farms with newer, more efficient technologies as well as servicing of the existing farms. According to the Center of Excellence research in 2009, there are combined jobs needed during wind farm construction per 100 MegaWatt (MW). California currently has 1,347 MW in various stages of wind farm development. Thus, during development and construction, 520 to 1,820 jobs will be temporarily added within these sectors. 4 Renewable Energy Occupations Although the renewable energy industries vary in their staffing patterns depending on the technology (solar, wind, geothermal, etc.) and the type of industry (distributed generation or utility-scale power plants), there are certain patterns in occupations they employ. The most opportunities exist for skilled construction trades (specifically, plumbers, roofers, electricians, heating, ventilation and air conditioning technicians, project foremen), engineers (such as mechanical, electrical and civil engineers), and sales/management professionals. The research published by the UC Berkeley Labor Center in March 2011 revealed that two-thirds of all direct jobs in distributed renewable energy and energy efficiency are in the traditional construction trades, and only a small number are in new specialized green jobs. 5 This was confirmed by a number of employers interviewed by the Centers of Excellence. One large solar installation employer, for example, stated that they require at least one year of construction experience for their entry-level solar installation positions and not necessarily solar installation experience/knowledge. Solar Energy Related Occupations According to the nation-wide study of solar industry workforce conducted by The Solar Foundation in 2010, the solar industry consists of several industry sectors, with installation being the largest sector, followed by manufacturing, wholesale trade and others 6. The Inland Empire s solar industry is dominated by solar installation firms and is home to 3 Workforce Needs for Renewable Energy Power Plants in Southern California, Center for Energy Efficiency and Renewable Technologies, October Environmental Scan: Wind Turbine Technicians in California, California Community Colleges Centers of Excellence, California Workforce, Education, and Training Needs Assessment for Energy Efficiency, Distributed Generation and Demand Response, University of California - Berkeley, March National Solar Jobs Census 2010, The Solar Foundation, October Centers of Excellence Page 4

5 some wholesale trade and parts manufacturing businesses. The occupations that comprise each of the sectors are listed below in Table 3. Table 3 - Solar Industry Sectors and Job Titles 7 Sector Sample Job Titles Manufacturing Production Workers First-line supervisors or managers of production and operating workers Accountants and accounting clerks or finance staff Engineers (all types) Sales Occupations Installation Solar photovoltaic installers/technicians Solar water or pool heating installers/technicians Solar designers or engineers Solar sales representatives/cost estimators Energy auditors HVAC technicians with specific skills in solar installations Plumbers with specific skills in solar installations Electricians with specific skills in solar installations Roofers with specific skills in solar installations Wholesale Trade Sales Occupations Accountants and accounting clerks or finance staff Marketing staff Utilities Solar customer management Solar utility procurement Solar planners Solar support staff Other (Research & Development; Financing, etc.) Mechanical Engineers Scientists Financers/Accountants Across these sectors, the five occupations with the highest projected 12-month growth include 8 : Photovoltaic installers (51-66% growth) Electricians with specific experience in solar installations (42-55% growth) Sales occupations at wholesale trade firms (40-49% growth) Sales representatives or estimators at installation firms (39-47% growth) Roofers with specific experience in solar installations (36-49% growth) Wind Energy Related Occupations 9 The wind energy industry is comprised of several occupations that can be categorized into five occupation sectors: Manufacturing, construction, operations and maintenance, utilities, and finance/development. Table 4 provides examples of common wind industry job titles for each sector. In California, there were 52 existing wind farms in 2009, with more under development; each of which will require a skilled workforce. 7 The Table was developed using primarily the information from the The Solar Foundation s study. 8 National Solar Jobs Census 2010, The Solar Foundation, October Environmental Scan: Wind Turbine Technicians in California, California Community Colleges Centers of Excellence, 2009 Centers of Excellence Page 5

6 Table 4 - Wind Industry Sectors and Job Titles Sector Sample Job Titles Manufacturing Turbine production assemblers Tower production assemblers Gearbox and component parts assemblers Construction Site prospectors Construction laborers Construction supervisors Operations and Maintenance Wind turbine technicians Wind turbine engineering technicians Wind farm operations manager Utilities Electricians Finance/Development Wind farm developers Project managers Financers/Accountants The construction sector of the wind energy industry is the second largest employment base within the industry cluster nationwide. The actual number of employees needed fluctuates with current wind farm development. Initially, a wind farm is constructed with assistance from the following positions: Civil engineers (road improvements and turbine access roads), Structural engineers (turbine foundations), Electrical engineers (medium voltage collection from the turbines, step-up transformation, and high voltage transmission to the grid), and Wind turbine generators (installation, erection, and maintenance). Wages The survey of the renewable energy firms in the Inland Empire region identified that the jobs that exist in these sectors offer good wages. The top paying jobs include various engineering, construction and management positions (see Tables 5 and 6). Table 5 Median Starting Salary for Experienced Employees in Renewable Energy Sectors MEDIAN STARTING SALARY: EXPERIENCED EMPLOYEES $ OCCUPATION Renewable Energy Hourly wage Construction and Building Inspectors $36.06 Accountants $33.65 Civil Engineers $33.65 Architectural and Civil Drafters $33.65 Computer and Information Systems Managers $33.65 Carpenters $33.65 Mechanical Engineers $31.25 Engineering Technicians (Except Drafters, Electrical, or Electronic) $31.25 Cement Masons and Concrete Finishers $29.00 Engineering Managers $28.85 Source: ERISS, Inc., 2010 Centers of Excellence Page 6

7 Table 6 Median Starting Salary for Non-Experienced Employees in Renewable Energy Sectors MEDIAN STARTING SALARY: NON EXPERIENCED EMPLOYEES ( y g) $ OCCUPATION Renewable Energy Hourly wage Construction and Building Inspectors $24.04 Carpenters $20.00 First Line Supervisors or Managers of Non Retail Sales Workers $20.00 Construction Managers $19.23 Civil Engineers $16.83 Architects (Except Landscape and Naval) $16.83 General and Operations Managers $16.00 Purchasing Agents (Except Wholesale, Retail, and Farm Products) $15.00 Sales Representatives $14.45 Heavy and Tractor Trailer Truck Drivers $14.00 Source: ERISS, Inc., 2010 Occupational Employment Growth The survey of the Inland Empire businesses engaged in the renewable energy industries showed that production and engineering occupations are leading the job growth. Specifically, employment for retail sales managers is expected to increase by 50 percent. Manufacturing/production occupations, such as Inspectors, testers, sorters, samplers, and weighers as well as Sheet metal workers are projected to grow by 39 and 36 percent respectively. Insulation workers, plumbers, and engineers are also on the list of the top growing occupations. The full list of fastest growing jobs is in Table 7. Table 7 - Top Occupations by 12-Month Projected Growth 10 Source: ERISS, Inc., Labor Market Survey of Businesses in San Bernardino and Riverside Counties, ERISS, Inc., December Centers of Excellence Page 7

8 Skills, Knowledge and Education Requirements Employers Top 3 Most Important Knowledge and Skill Areas Understanding basic principles of renewable energy (88% important, 56% very important). 2. Basic construction and building experience (85% important, 54% very important). 3. Understanding basic principles of electricity (79% important, 49% very important). Employers expressed great interest in education and training programs that can be developed by community colleges: Employers prefer an associate degree specific to the position for operations and repair technicians (69%), solar PV installers (64%), and customer service representatives (58%). The majority of employers prefer a bachelor s degree in a related field, but not specific to the occupation for research and development technicians (59%) and renewable energy engineers (67%). Three out of four employers expressed great or some interest in a workforce readiness certificate tailored to the basic workforce skills required in the renewable energy industry. According to the labor market survey of the Inland Empire businesses, engineering, management and even technician level occupations require college degrees or certificates. (see Table 8) Table 8 - Educational Requirements: Percent of Employers Requiring at Least Some College to Graduate Degrees Renewable Energy Marketing Managers 93 Engineering Technicians (Except Drafters, Electrical, or Electronic) 90 Treasurers, Controllers, And Chief Financial Officers 90 Civil Engineers 89 Engineering Managers 87 Architectural and Civil Drafters 87 Environmental and Health Scientists and Specialists 80 Landscape Architects 80 Architects (Except Landscape and Naval) 80 Electronics Engineers (Except Computer) 80 Source: ERISS, Inc., Key Findings: Renewable Energy Occupations in the San Diego and Imperial Counties, 2009 Centers of Excellence Page 8

9 Appendix A Centers of Excellence Page 9

10 For More Information Contact: EVGENIYA ZHENYA LINDSTROM Director, Center of Excellence Desert & San Diego Imperial Regions Office: Fax:

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