Energy Efficiency Services Sector: Workforce Size and Expectations for Growth

The energy efficiency services sector (EESS) is poised to become an increasingly important part of the U.S. economy. Climate change and energy supply concerns, volatile and increasing energy prices, and a desire for greater energy independence have led many state and national leaders to support an increasingly prominent role for energy efficiency in U.S. energy policy. The national economic recession has also helped to boost the visibility of energy efficiency, as part of a strategy to support economic recovery. We expect investment in energy efficiency to increase dramatically both in the near-term and through 2020 and beyond. This increase will come both from public support, such as the American Recovery and Reinvestment Act (ARRA) and significant increases in utility ratepayer funds directed toward efficiency, and also from increased private spending due to codes and standards, increasing energy prices, and voluntary standards for industry. Given the growing attention on energy efficiency, there is a concern among policy makers, program administrators, and others that there is an insufficiently trained workforce in place to meet the energy efficiency goals being put in place by local, state, and federal policy. To understand the likelihood of a potential workforce gap and appropriate response strategies, one needs to understand the size, composition, and potential for growth of the EESS. We use a bottom-up approach based upon almost 300 interviews with program administrators, education and training providers, and a variety of EESS employers and trade associations; communications with over 50 sector experts; as well as an extensive literature review. We attempt to provide insight into key aspects of the EESS by describing the current job composition, the current workforce size, our projections for sector growth through 2020, and key issues that may limit this growth