California Green Innovations Challenge Renewable Energy Labor Market Study, Report 1
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1 2010 California Green Innovations Challenge Renewable Energy Labor Market Study, Report 1 Renewable Energy Labor Market Analysis with Special Emphasis on Solar PV Sales Professionals SolarTech Making Solar Happen 12/1/2010
2 Vision without Action is Daydreaming. Action without Vision is Wandering. Vision with Action is Destiny SolarTech Making Solar Happen 2
3 California Green Innovations Challenge Renewable Energy Labor Market Study, Report 1 Renewable Energy Labor Market Analysis with Special Emphasis on Solar PV Sales Professionals SolarTech 1290 Parkmoor Ave. San Jose, Calif This is a sponsored commissioned work under a grant from the State of California Conducted by the SolarTech Workforce Innovations Collaborative Questions? Contact: Doug Payne Executive Director and Co-Founder dpayne@solartech.org David McFeely Director, Grants and Industry Solutions dmcfeely@solartech.org First Publication, December 1,
4 Prepared By: SolarTech Workforce Innovations Collaborative (SWIC) SWIC Program Director: David McFeely SolarTech Offices 1290 Parkmoor Ave San Jose, Calif SWIC Analyst and Lead Author: Fabienne Rodet, SageWorks Consulting SWIC Project Manager: Justin Bradley, Bradley Consulting Prepared For: California Employment Development Department Green Innovation Challenge Grant Program California State Grant Registration No. K Sandy Iwatsuru Project Manager, Workforce Collaborative Section CALIFORNIA EMPLOYMENT DEVELOPMENT DEPARTMENT Victoria Bradshaw Secretary LABOR AND WORKFORCE DEVELOPMENT AGENCY Paul Feist Undersecretary, California Labor and Workforce Development Agency LABOR AND WORKFORCE DEVELOPMENT AGENCY José Millan Vice Chancellor California Community Colleges CALIFORNIA COMMUNITY COLLEGES CHANCELLOR OFFICE DISCLAIMER This report was prepared as the result of work sponsored by the California Labor & Workforce Development Agency (LWDA). It does not necessarily represent the views of the LWDA, its employees or the State of California. The LWDA, the State of California, its employees, contractors and subcontractors make no warrant, express or implied, and assume no legal liability for the information in this report; nor does any party represent that the uses of this information will not infringe upon privately owned rights. This report has not been approved or disapproved by the California Labor & Workforce Development Agency nor has the Agency passed upon the accuracy or adequacy of the information in this report.
5 Preface What is the California Green Innovations Challenge? The California Labor & Workforce Development Agency (LWDA) is the only agency in state government coordinating labor and employment programs for workers and businesses. Within the LWDA, the California Employment Development Department (EDD) offers a wide variety of services to millions of Californians under the Employment Service, Unemployment Insurance, State Disability Insurance, Workforce Investment, and Labor Market Information programs. The EDD provides labor market information to employers, job seekers, and others, including policy makers, economic developers, economists, and planners. Its programs provide valuable services, such as job search workshops, referral to education, training, and supportive services to help keep employers, employees, and job seekers competitive. Within the LWDA and the EDD, the Green Innovation Challenge grants are designed to encourage industry leaders to find innovative methods to meet the needs of businesses. The objectives are to fill immediate employment needs as well as develop a partnership and infrastructure flexible enough to support employment growth for up to 10 years. The grants awarded are intended to encourage business-led partnerships in various counties to develop the most creative methods of increasing employment specialties within the green economy. Winning grant recipients are focused on programs that support the development of a highly-trained workforce with the critical skills required for jobs in the following clean tech sectors: Renewable energy generation Energy efficiency in buildings Alternative and renewable fuels and vehicles Energy storage and water efficiency Contact information for the main Employment Development Department (EDD) is available at Initial GIC solicitation announcement: GIC award press release announcement: 2
6 Acknowledgements From SolarTech and the SolarTech Workforce Innovations Collaborative (SWIC) SolarTech and SWIC would like to thank the outgoing California Secretary of Labor and Workforce Development, Victoria Bradshaw; the Undersecretary for California labor and Workforce Development, Paul Feist; and the Vice Chancellor of California Community Colleges, José Millan for their vision and leadership resulting in the Green Innovations Challenge grant that funded this paper. Your trust in the SWIC team to fulfill your green job creation and placement vision is appreciated. SolarTech would like to thank our industry advisors: Bill Scott, Vice President of Solar Solutions, Peterson-Dean Solar; Russ Kahn, South Bay Sales Manager at Real Goods Solar, Inc.; and Neil Collins, Sales Operations Manager with Westinghouse Solar (formerly Akeena Solar) for their participation in the SolarTech October Renewable Energy Workforce Forum and for their valuable industry insight. SolarTech would like to thank our October Forum host Applied Materials, specifically Cathy Boone, Senior Director of Energy Policy and Market Development, for hosting the forum on October 26 th at its Santa Clara headquarters and for providing a global context for the solar industry and Applied Materials solar strategy. SolarTech recognizes the valuable contributions of its Workforce Committee Chairmen, Justin Bradley, Principal of the Bradley Consulting and SWIC Project Manager for SolarTech, as well as Rick Kuhn, Director, Economic & Resource Development at Foothill-De Anza Community College District. Their leadership during the past three years has, in large part, contributed to SolarTech s Green Challenge grant and the creation of SWIC. SolarTech values its collaboration with its SWIC partners the North Valley Workforce Board (NOVA), specifically Kris Stadelman, Executive Director, Laura Caccia, Program Manager, and Shonda Ranson, Workforce Development Analyst as well as Catherine Ayers, SWIC Project Director at Foothill-De Anza Community College District (FHDA). SolarTech also recognizes Mahmoud (Moe) Shahram, President of SolarBreeze Technology, Inc., for stepping forward to develop the Solar PV Technical Sales training program and for piloting the first class at Foothill College (Los Altos Hills, Calif.). Lastly, SolarTech would like to thank Peter Lum, Senior Training Professional with Enphase Energy. Peter developed and launched a Solar PV Sales training pilot class at Skyline College (San Bruno, Calif.) in early Peter was an invaluable advisor in helping the Foothill College instructor, Moe Shahram, define and pilot the first South Bay class in November
7 Table of Contents 1.0 Abstract Executive Summary Introduction Overview: SolarTech Workforce Innovations Collaborative (SWIC) Objectives: SolarTech Renewable Energy Workforce Forum Situation Analysis: Why the Industry Needs a Better Workforce Lens Solar Industry Employment Overview Difficulty in Hiring Within the Installation Segment California Solar Industry Job Trends Aggregate Trends Market Opportunity Market Size Geographic Concentration Trends for PV System Sales Position Trends for PV System Design Engineer Position Solar Industry System Integrators Panel Discussion: Highlights from Subject Matter Experts Solar PV System Sales: Desired Skills for New Hires Opportunities for Entry-Level Positions Importance of Certifications Summary & Next Steps Market Size & Candidate Profile SWIC Program Next Steps Industry Call to Action Appendix A: Solar Technical Sales Proposal Development Curriculum Appendix B: Solar Technical Sales Proposal Development Class Brochure and Self- Assessment Checklist
8 1.0 Abstract Many colleges and training organizations are in the process of developing new courses in the field of solar and clean energy. These training programs are valuable channels to help job seekers transfer their skills from mature industries to the growing clean technology sector. This report provides a detailed analysis of the labor market for the solar PV system sales function within the context of the solar labor market in the U.S. and, more specifically, in California. In order to gather preliminary market intelligence, SolarTech convened an industry panel of solar integrators at its October Renewable Energy Workforce Forum to better understand the needs of hiring companies. The analysis in this report includes other secondary sources as well as a SolarTech study of current hiring trends based on job board data. This report should provide specific job requirements from hiring companies in support of curriculum development for the solar PV system sales function. Key Acronyms GIC, Green Innovations Challenge, a California state 2010 grant initiative LWDA, California Labor and Workforce Development Agency FHDA, Foothill-De Anza Community College District, Los Altos Hills, Calif. NOVA, North Valley Workforce Board, Sunnyvale, Calif. SWIC, SolarTech Workforce Innovations Collaborative, which includes SolarTech, NOVA and FHDA. 5
9 2.0 Executive Summary The solar and clean energy industries have been widely promoted as the means to provide the next great wave of innovation and job opportunities for displaced high-tech workers in Silicon Valley and California. Given the severe and prolonged unemployment levels, thousands of job seekers are looking for new careers in this arena. It is therefore critical to understand what opportunities exist and how job seekers can be successful in securing employment. The SolarTech Workforce Innovations Collaborative (SWIC) is a partnership of SolarTech, NOVA Workforce Board and the Foothill-De Anza Community College District (FHDA) that is funded by the California Labor and Workforce Development Agency (LWDA) under its Green Innovations Challenge to prepare the Bay Area to meet the labor needs of the fast-changing cleantech industry. SWIC s mission is to identify the immediate and mid-term unmet workforce needs of the renewable energy sector. SWIC will help align the labor supply and demand to connect job seekers, educators and employers. Specifically, this report focuses on the market demand and talent needs for the solar PV system sales function. Solar job growth is expected to increase at a rate of 26% over the next 12 months, compared to the sluggish 2% growth that is expected for the U.S. economy as a whole. Overall, as of August 2010, the domestic solar economy employs approximately 93,000 people, with over 117,000 projected jobs for With California representing the fourth largest solar market worldwide in 2009, it is not surprising that more than 30% of the estimated solar jobs in the U.S. in 2010 were in the state. California is home to 1,072 solar firms employing an estimated 36,000 workers in With reported job growth for sales representative or estimators at 39%, the California labor market can expect between 659 and 1,319 new sales jobs with installers in With turnover rates of approximately 30% for the sales function in the residential segment, there are opportunities for the right candidates. Seasoned sales professionals looking to enter the solar market must be able to grasp the technical and financial aspects of solar PV system sales. The learning curve for sales professionals new to the solar industry is about 6 months. Candidates new to the solar industry who will be most successful in securing positions will be seasoned sales professionals with a proven track record closing B2C and B2B sales who have taken part in some form of solar sales training program. Fundamental skills include knowledge of best practices in system design, site analysis and performance as well as an understanding of utility rate design and incentive structures. Financial analysis and modeling capabilities are also required. In order to further qualify and quantify the opportunities for solar system sales positions, SWIC has partnered with San Jose State University s School of Business to conduct a primary research study of California integrators. A survey will be conducted in December of this year with results available in February of
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