India’s renewable energy sector is expected to create over 3 million jobs by 2030, making it one of the most significant contributors to job creation in the country’s green economy.
November 20, 2024. By News Bureau
India’s push towards a greener future is creating a transformative shift in its energy landscape, one that brings both environmental benefits and economic growth. As the country embarks on its journey to reduce carbon emissions and increase renewable energy capacity, the renewable energy sector is poised for rapid growth. By 2030, India aims to reduce its carbon intensity by 45%, fulfill a 500 GW renewable energy capacity target, and generate significant employment opportunities. These ambitious goals provide a clear signal that the renewable energy sector is not just a necessity for sustainability, but also a booming job market. To add, by October 2024, India's renewable energy capacity crossed 200 GW, making up 46.3% of the total 452.69 GW power generation capacity.
Projected Job Growth in Renewable Energy
India’s renewable energy sector is expected to create over 3 million jobs by 2030, making it one of the most significant contributors to job creation in the country’s green economy. The sector has already experienced a notable increase in job demand, from 8.5% in FY23 to 23.7% in FY24, reflecting a growing interest and investment in sustainable energy sources like solar, wind, and green hydrogen. Over the next three years alone, 1.7 million jobs are projected to be added to the workforce. This shift is not only driven by environmental goals but also by policy interventions like the Production Linked Incentive (PLI) and 100% FDI in the renewable energy sector, making it an increasingly attractive area for both domestic and foreign investments.
Job Roles In Demad
While positions in operations, maintenance, and technical roles are highly sought, there is a rising demand for solar PV and wind turbine technicians and installers, roofers, production operators, storage operators, and waste management specialists.
Current Workforce Strength in India’s Renewable Energy Sector
As of 2023, the renewable energy sector in India employs around 1.02 million people, and this figure is expected to continue growing as investments in renewable energy ramp up. The global focus on sustainability, especially at forums like COP28 and the G20 summit, has provided a boost to India’s renewable energy ambitions. With a target to meet 50% of electric power from renewables by 2030, India is steadily progressing toward becoming a key player in the global renewable energy market.
Skills Gap in the Renewable Energy Sector
Despite the rapid growth of India's renewable energy sector, a significant skills gap remains a major hurdle. As the country ramps up its renewable energy capacity, particularly in solar, wind, and green hydrogen technologies, the demand for specialized professionals has surged. The labor market is struggling to meet this demand, with a notable shortage of workers skilled in key areas such as solar PV installation, wind turbine maintenance, and the emerging green hydrogen sector. This mismatch between demand and supply has been exacerbated by the swift pace of growth in the sector, with global estimates indicating a labor demand of 17 million workers in equipment manufacturing, installation, and maintenance by 2030. However, there remains a concerning gap of 7 million workers, leaving India to address this shortage in order to keep up with its renewable energy ambitions.
Efforts are underway to close this gap, notably through the Skill India Mission, which has already trained over 140 million youth across various sectors. While this is a commendable achievement, more targeted initiatives are needed to focus specifically on renewable energy skills. To further bridge the skills divide, intensive reskilling programs, apprenticeship schemes, and internships are critical, as they offer hands-on experience that is essential for workers to keep pace with the latest industry advancements. Moreover, collaborations between educational institutions and industry leaders are essential to ensure that curricula are aligned with the emerging needs of the renewable energy sector, thus creating a workforce that is both highly skilled and ready to contribute to India’s green future.
Entry-Level and mid-level salaries
The renewable energy sector offers competitive salaries to attract skilled workers. Entry-level roles typically earn between INR 27,000 and INR 30,000 per month, with roles such as Technicians earning INR 29,000–31,000, Engineers earning INR 35,000–38,000, and Sales Executives earning around INR 26,000–28,000. As the sector matures and demand for specialized skills increases, salaries are expected to rise, making it an attractive field for job seekers.
Attrition rates in the renewable energy sector
Employee retention is a key challenge in any sector, and the renewable energy industry is no exception. However, the attrition rate in the contract workforce has shown improvement, decreasing from 38.8% in FY22-23 to 33.5% in FY23-24. This trend indicates growing job satisfaction, as employees see more long-term potential in the sector due to its rapid expansion and the long-term sustainability of renewable energy initiatives.
Upskilling costs for employees
To keep up with the rapidly changing demands of the renewable energy sector, organizations are investing in upskilling their workforce. Upskilling costs vary depending on the level of expertise required, but training programs typically cost between INR 10,000 and INR 20,000 per employee. These investments are necessary to maintain a skilled workforce capable of handling advanced technologies like solar and wind power installations, green hydrogen production, and energy storage systems.
Government initiatives and skilling opportunities
The Indian government is taking proactive measures to ensure that the country’s workforce is equipped with the necessary skills to meet the renewable energy sector’s needs. Under the Skill India Mission, over 140 million youths have received training, and more than 5.4 million have been specifically upskilled. Alongside this, the establishment of 3,000 Industrial Training Institutes (ITIs) across the country has reinforced the nation’s commitment to producing a skilled workforce.
The government is also facilitating the development of the green hydrogen sector, with the introduction of specialized training programs that focus on emerging technologies. These initiatives are designed to ensure that India’s renewable energy workforce can meet the growing demand for skilled professionals across various sub-sectors.
Challenges in skilling the workforce
While India has made considerable strides in skilling its workforce, several challenges remain. Issues such as a lack of supportive policies for green skills development, limited coverage of training programs, and inadequate access for marginalized groups are hindering the country’s efforts. To address these, the establishment of more green skill development programs and better policy support is essential to ensure an inclusive, skilled workforce in the renewable energy sector.
Parting word
India’s renewable energy sector is at the heart of the country’s transition to a sustainable future. With the potential to create millions of jobs and drive economic growth, the sector offers abundant opportunities for skilled professionals. However, to fully capitalize on this potential, the country must focus on overcoming the skills gap through strategic training initiatives, government support, and private-sector partnerships. As the demand for skilled professionals grows, India’s renewable energy sector will not only help meet the nation’s environmental goals but will also provide an economic foundation for a greener, more prosperous future.
- Subburathinam P, Chief Strategy Officer, TeamLease
