Needs Assessment Gap Analysis

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Needs assessment gap analysis

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Summary

2021 PENNSYLVANIA CLEAN ENERGY INDUSTRY
Workforce Development
Needs Assessment & Gap
Analysis
APRIL 2021
2021 Pennsylvania Clean Energy Workforce Development Needs Assessment & Gap Analysis
[bw] RESEARCH PARTNERSHIP
Table of Contents
Table of Contents ..............................................................................................................................i
About This Report............................................................................................................................ 1
Executive Summary ......................................................................................................................... 3
Key Findings ................................................................................................................................. 3
Recommendations....................................................................................................................... 7
Introduction ..................................................................................................................................... 8
Clean Energy Jobs in Pennsylvania .............................................................................................. 9
Clean Energy Occupations ......................................................................................................... 12
Clean Energy Training Landscape .................................................................................................. 16
Clean Energy Employers ................................................................................................................ 20
COVID-19 Impacts & Expectations ............................................................................................ 20
Hiring Needs, Challenges, & Preferences .................................................................................. 24
Qualification Requirements & Promotion Pathways ................................................................ 28
Clean Energy Workers ................................................................................................................... 31
Overall Qualifications & Program Participation ........................................................................ 31
Employment Benefits & Career Satisfaction ............................................................................. 34
Career Advancement & Promotion Pathways ........................................................................... 37
Conclusions.................................................................................................................................... 41
Occupational Career Profiles ......................................................................................................... 43
Assemblers or Fabricators ......................................................................................................... 43
Insulation Workers .................................................................................................................... 44
HVAC Mechanics, Installers, or Technicians .............................................................................. 45
Solar Photovoltaic Installers ...................................................................................................... 46
Energy Auditors ......................................................................................................................... 47
Electricians................................................................................................................................. 48
Plumbers, Pipefitters, & Steamfitters........................................................................................ 49
Appendix A: Survey Research Methodology ................................................................................. 50
Appendix B: Training Inventory ..................................................................................................... 51
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2021 Pennsylvania Clean Energy Workforce Development Needs Assessment & Gap Analysis
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About This Report
The Pennsylvania Department of Environmental Protection (DEP) commissioned BW Research
Partnership to produce the following Pennsylvania Clean Energy Industry Workforce Development
Needs Assessment and Gap Analysis Report. As mentioned in the 2020 Pennsylvania Clean Energy
Employment Report, the clean energy industry had been a growing source of jobs in Pennsylvania for
several years prior to the global pandemic. The following report is meant to identify how to best support
continued job growth in the state’s clean energy technology sectors

For the purpose of this report, the clean energy industry in Pennsylvania are the same sectors as defined
in the 2020 Pennsylvania Clean Energy Employment Report. The industry is comprised of five major
technology sectors—energy efficiency, clean energy generation, alternative transportation, clean grid
and storage, and clean fuels—as well as various sub-sectors within each such as solar, wind, efficient
lighting, hydropower, smart grid, electric vehicles, and biomass fuels. For more information on what
technologies and sub-technologies are included in Pennsylvania’s clean energy industry definition,
please refer to the 2020 Clean Energy Employment Report or the forthcoming 2021 Clean Energy
Employment Report

The 2020 Pennsylvania Clean Energy Employment Report highlighted particular strengths in the state’s
growing clean energy industry.1 Most notably, Pennsylvania is a strong manufacturing hub for wind
turbines and ENERGY STAR® products. At the same time, the state has ramped up the deployment of
energy efficient and clean electricity generating technologies, boosting the clean energy construction
and installation industry. Yet despite this growth, eight in ten clean energy employers in the state
reported difficulty finding qualified applicants at the end of 2019, citing lack of experience, industry-
specific knowledge, and competition as main concerns.2
The global Coronavirus (COVID-19) pandemic in the first quarter of 2020 resulted in layoffs, furloughs,
and project delays for clean energy businesses across the state. BW Research estimates that
Pennsylvania lost a net 13,200 clean energy jobs between March and December 2020 due to the COVID-
19 economic fallout—a 14 percent decline compared to the 2019 baseline.3 As the overall economy and
clean energy businesses begin to recover from the recession, some employers have indicated that the
pandemic has created backups in their project pipeline, resulting in a need for more skilled workers to
fulfill project demands

1 For the purposes of this report, clean energy jobs are defined as those that dedicate any portion of their labor hours to the
research, development, production, manufacturing, distribution, sales, installation, and repair of clean energy and energy-
related goods and services; these include clean energy generation, energy efficiency, alternative transportation, clean fuels, and
clean grid and storage

2 See generally: 2020 Pennsylvania Clean Energy Employment Report

http://files.dep.state.pa.us/Energy/Office%20of%20Energy%20and%20Technology/OETDPortalFiles/2020EnergyReport/2020PA
CEIR.pdf

3 For more information on the impacts of COVID-19 to U.S. energy sector employment, please visit
https://www.bwresearch.com/covid/

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The purpose of this report is to identify what partnerships and programs can most effectively train and
prepare the Pennsylvania workforce to meet the needs of clean energy businesses in the state. More
specifically, the research efforts gathered data on the following:
o Employer hiring needs and difficulties, including education, experience, and certification
requirements; preferred hiring sources; the provision of mentorship, internship, and
apprenticeship programs; and typical promotion pathways

o Current clean energy training and education offered in Pennsylvania, both in-person and online,
including geographic distribution; energy sector and occupational focus; and degree outcomes

o Detailed data on seven clean energy occupations found in the state’s key technology sectors,
including typical career pathway, educational attainment, common certifications, and work
experience; career satisfaction; wages; and employment benefits. These data are found in the
Occupational Career Profiles section beginning on page 47

Data in this report is compiled from a variety of sources, including the 2020 United States Energy and
Employment Report, the 2020 Pennsylvania Clean Energy Employment Report, and novel to this report,
two surveys administered to both clean energy employers and workers in the state of Pennsylvania, and
executive interviews with clean energy businesses in the state. Survey data was collected in the third
and fourth quarters of 2020 between August 27th and November 2nd, 2020. The survey methodology is
described in Appendix A. The report also synthesizes publicly-available data from the Bureau of Labor
Statistics and proprietary economic data from Emsi, a proprietary economic modeling and labor market
dataset

This research effort was originally commissioned before the onset of the global pandemic. While there
are still many uncertainties and it remains difficult to forecast how various industry sectors will recover,
this report highlights current workforce development needs and opportunities within Pennsylvania’s
clean energy industry. Moving forward, targeted regional workforce development initiatives and
partnerships could assist both clean energy businesses and Pennsylvania residents as they recover from
the pandemic-induced economic recession

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Executive Summary
Key Findings
OVERALL PROJECTED DEMAND & HIRING DIFFICULTIES
The seven clean energy jobs selected for this study were high-growth occupations prior to the
pandemic and will likely remain in demand in the coming years. Over the last five years, the seven
occupations grew by a collective six percent, and these occupations are pivotal to clean energy
deployment. Pennsylvania is a manufacturing hub for wind, hydro turbine, and ENERGY STAR products,
which means the state is well-poised to supply nationwide demand for clean energy goods and services,
possibly requiring the need for more skilled assemblers and fabricators and other manufacturing
positions. Meanwhile, within state borders, the ramping up of clean energy generation and energy
efficiency measures indicates a need for construction and installation workers such as HVAC mechanics,
electricians, and solar photovoltaic installers

Despite furloughs and layoffs due to COVID-19, the majority of surveyed employers indicated that
they expect to have either the same or more workers by the end of the year. Six in ten employers
noted that they expected to have the same number of employees they had in January 2020 by the end
of December 2020, and a quarter of firms indicated that they expected to have more workers by
December 2020 compared to their original January 2020 baseline employment

In general, prior to COVID-19, employers reported hiring difficulties related to a small applicant pool,
lack of experience, and competition with other industries. The employer survey found that 84 percent
of businesses had some level of hiring difficulty before the onset of COVID-19. Most commonly,
employers indicated that hiring difficulties were related to having a small pool of applicants to select
from; just over a third of employers indicated that this contributed to their difficulty in finding qualified
candidates to fill open positions. About a third of employers also reported that candidates lack the work
experience needed for the job and another two in ten employers cited job competition with other
industries

Employers especially noted that they faced industry competition for skilled electricians. Several solar
firms mentioned an ongoing shortage for master electricians and generally for electricians with
significant work experience and industry-specific knowledge. These skills are valuable across a variety of
industries and are not only clean energy specific

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EXPERIENCE, EDUCATION, & CERTIFICATIONS
Lack of experience or qualified applicants with industry-specific knowledge is especially difficult in the
aftermath of COVID-19. During the executive interviews, several employers indicated that lack of
relevant work experience is particularly prevalent now, as many new applicants to clean energy
positions are transitioning from industries that were hardest hit by the pandemic; these include largely
customer service-related positions such as hospitality, food service, and retail. Without relevant
construction-related experience working outdoors, on roofs, and with electrical equipment, these new
job candidates lack the hands-on skills required to land entry-level installer positions

Relevant work experience is required by significantly more employers over an academic degree. Nine
in ten surveyed employers reported that their highest required level of education is either a high school
diploma or vocational technical training, yet three-quarters of employers require some amount of work
experience. About six in ten surveyed employers indicated that they require one to three years of
relevant work experience and 13 percent noted that they require more than three years of experience in
a comparable position

Surveyed clean energy workers also cited the importance of relevant work experience in landing their
job. Fewer than one percent of surveyed clean energy workers indicated that they did not have any
related work experience prior to landing their current job; almost three-quarters of current workers had
more than three years of related work experience. In fact, the biggest obstacle to finding employment in
the clean energy industry, according to current workers, was getting relevant industry and work
experience. About three in ten surveyed clean energy workers reported that this was a considerable
challenge and another 44 percent indicated this was somewhat of a challenge to finding employment;
this received the highest rating as an obstacle to finding employment in the clean energy industry

According to clean energy workers, programs that provide on-the-job training were pivotal to landing
a clean energy job. The majority of surveyed workers indicated that they have participated in an
internship (65 percent) or apprenticeship (71 percent) program. Of survey respondents that participated
in these programs, between 95 to 96 percent indicated that it improved their ability to land their current
job

Half of employers require or prefer specific certifications. Fifty-three percent of employers indicated
that they require or prefer specific certifications. Of these 53 percent, 30 percent reported that they
require specific certifications and 23 percent indicated that they prefer, but do not require, specific
certifications. Forty-seven percent of survey respondents reported that they neither require nor prefer
certifications. In executive interviews with solar firms, NABCEP (North American Board of Certified
Energy Practitioners) certifications were reported to be highly valued yet difficult to find due to a lack of
training programs and exam courses available in Pennsylvania. For energy efficiency occupations, such
as HVAC mechanics, the EPA certification was noted by several employers as either required or
preferred. For electricians, employers largely indicated that they would prefer electricians to have a
license, though it is not necessarily required

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TALENT PIPELINE
The talent pipeline relies mostly on word-of-mouth. Seven in ten employers reported regularly using
word-of-mouth when searching for job candidates. Just under half of survey respondents (49 percent)
indicated regularly using online job sites such as Indeed, Monster, and CareerBuilder when seeking
qualified candidates. At the same time, surveyed clean energy workers indicated that they regularly use
online job sites and social media sites when searching for a job

PROJECT PIPELINES
COVID-19 has resulted in project pipeline backups for most clean energy employers. In fact, 85 percent
of survey respondents agreed that the pandemic impacted their firm’s ability to complete projects, and
another 69 percent reported that COVID-19 reduced their firm’s overall work

Despite a slowdown in installations, project sales did not stall for some clean energy firms. Several
employers noted that they had continued project sales throughout COVID-19, despite being unable to
fulfill installations. As social distancing measures have eased, these businesses are faced with bandwidth
issues trying to catch up to prior projects on pause due to the pandemic as well as new projects that
have additionally come online in 2020. Though some firms reported continued sales during the
pandemic, the majority of firms (77 percent) agreed that COVID-19 impacted their ability to acquire new
customers or projects

TRAINING LANDSCAPE
In-person clean energy training programs in Pennsylvania are largely focused on the electrical, HVAC,
and construction trades. About a third of all programs in the inventory were for electrical-related
trainings, followed closely by HVAC programs, which represent 27 percent of the inventory. Other
construction-related programs accounted for 15 percent of programs while clean energy engineering-
related training represented 14 percent of programs in the training inventory. Online course offerings
are largely focused on building analysis,4 construction, HVAC, and weatherization

With the prevalence of programs for skilled trades, it is not surprising that the state’s clean energy
training landscape appears largely focused on the energy efficiency sector. Ninety-five percent of in-
person programs and 82 percent of web offerings in the training inventory are related to energy
efficiency, which includes all construction and electrical programs that are not explicitly focused on
renewable energy

Three counties have the highest concentration of program offerings at physical locations, though
there are many clean energy training courses offered online. The counties of Allegheny, Bucks, and
4This includes energy auditor, building analyst, multifamily building analyst, healthy home evaluator, and home energy
professional trainings offered by the Building Performance Institute (BPI)

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Philadelphia each had the highest number of training programs within the county, with 25 to 37
programs each; altogether, these three counties represented a quarter of all physical clean energy
training locations. However, there are 627 training programs in the inventory that are offered online,
which enhances access for a wider population

EMPLOYMENT BENEFITS & CAREER SATISFACTION
The majority of surveyed clean energy workers in each of the seven occupations reported receiving
both healthcare benefits and retirement contributions from their employers. Overall, across all
occupations surveyed, about seven in ten workers reported that their company pays for all health
insurance costs and another 25 percent indicated that their company pays for part of their health
insurance. More than three-quarters of current workers also reported that their company contributes to
their retirement. For information on healthcare and retirement benefits by occupation, please refer to
the Occupational Career Profiles section beginning on page 47. Additional employment benefits cited by
clean energy workers include paid vacation, flexible work hours, company vehicles, transportation
stipends, and tuition support

Clean energy workers are also very satisfied with their current careers as well as their opportunities
for career advancement. Almost all surveyed clean energy workers indicated that they are satisfied with
their clean energy career, and more than half reported that they are very satisfied. Furthermore, nearly
all surveyed workers expect to advance, either within their current company or at another company in
the same industry. In fact, 78 percent of current workers expect to be promoted within their current
company, while 17 percent of respondents expect to advance at another company in the same industry

Less than one percent of current workers indicated that they expect to remain in their current positions
but move to another industry or field

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Recommendations
The clean energy industry has the potential to contribute to Pennsylvania’s economic recovery. Many
clean energy occupations have higher hourly wages compared to the national and statewide median as
well as jobs in industries hardest hit by the pandemic, such as hospitality, food service, and retail

Median hourly wages for the seven occupations examined in this report were between $17 to $33 per
hour. By comparison, food preparation and serving-related occupations in Pennsylvania had an hourly
median wage of $10.72 while retail sales workers earned an hourly wage of $11.53.5 Furthermore, clean
energy workers are more likely to receive healthcare and retirement benefits compared to national
private sector averages and are very satisfied with their careers and their opportunities for
advancement. With often lower formal educational requirements than a four-year degree, the clean
energy industry is largely accessible with fewer barriers to entry and can serve as a source of high-
quality jobs for displaced workers

However, in order to create more jobs and support displaced worker transitions, clean energy
businesses need workforce development support that creates partnerships with training providers
across the state to provides hands-on training and industry-specific knowledge. With these supports, the
Commonwealth of Pennsylvania and programs that support a clean energy economy can help to meet
the needs of clean energy businesses in the state that are unable to find qualified workers to fulfill
project demand. In training the next generation of clean energy workers, the state will also be well-
poised to meet the demands of the coming energy transition

ACTION ITEMS
The following are recommended action items based on the research findings that could support clean
energy workforce development in Pennsylvania:
Facilitate on-the-job training opportunities and hands-on industry experience for workers. Relevant
work experience was considered important by both employers and current workers, yet difficult to
obtain for both. The Commonwealth can facilitate opportunities for workers to get on-the-job training
(OJT) through apprenticeships or internships at a lower risk to companies. These experiential trainings
could also be tacked onto existing clean energy training programs that do not have a hands-on training
module or component. Examples of successful programs in other states include the Massachusetts Clean
Energy Center’s Vocational Internship program, which funds internships for vocational high school
students at clean energy companies.6 The Workforce Development and Training Chapter in NYSERDA’s
Clean Energy Fund Investment Plan facilitates employer and training provider partnerships to develop
OJT training modules, internships, and apprenticeships. In Rhode Island, the Department of Labor and
5 Statewide wages for food preparation and serving-related occupations and sales workers are from the Bureau of Labor
Statistics, Occupational Employment Statistics, May 2019

6 https://www.masscec.com/vocational-internship-program-0
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Training partners with the Apprenticeship Rhode Island program, part of a national initiative7 that works
with employers to build apprenticeship programs across a number of industries including manufacturing
and technology. The program has a goal of doubling the number of workers trained through
apprenticeships within five years

Support curriculum sharing and procurement. It is a lengthy and expensive process to develop
curriculums from scratch. The DEP could facilitate round table discussions with clean energy employers,
identifying key skills and certifications, then assist training providers in either finding curriculums already
in use or in procuring nationally accredited curriculums. An example of this would be offering more
opportunities for NABCEP certification and testing within Pennsylvania. NABCEP is particularly suited for
the solar industry because it includes OSHA training and is consistently up to date with standards

Create a pipeline for displaced workers to transition into the clean energy workforce. Individuals most
negatively impacted by COVID-19, including hospitality, retail, and food service workers, may need more
assistance navigating the educational and experience requirements of the clean energy workforce. Solar
employers in particular reported that the high volume of hospitality workers applying for installation
positions lack experience and industry-specific knowledge. Pennsylvania could consider supporting
programs that connect these individuals to training providers in the state that give them basic
knowledge and skills to prepare them to enter the clean energy workforce. The Pennsylvania College of
Technology can be used to provide the initial industry-specific trainings, as they are already equipped
with virtual seminars focused on energy efficiency skills. The online simulations include virtual walk-
throughs with a hands-on skills training module as well and many courses have reduced the time
required for completion, which means these trainings are viable options for displaced workers

Promote manufacturer-specific certifications for clean energy technologies. These would include air-
source heat pumps or high-efficiency heating and cooling technologies and could be integrated into
existing training programs as an additional component or module. Manufacturers such as Rinnai, Fujitsu,
Carrier, Trane, or Mitsubishi often offer certifications to demonstrate both industry- and technology-
specific knowledge. Such certifications would be valuable to both new and incumbent clean energy
workers to improve skills and expertise with specific technologies. Pennsylvania could facilitate
connections between employers, manufacturers, and training administrators in the state to determine
ways that these certifications can be incorporated into existing programs

Introduction
7 Apprenticeship Rhode Island is part of the American Apprenticeship Initiative (AAI), which was launched by the U.S

Department of Labor in 2015. AAI funded public-private partnerships across the country between employers, organized labor,
non-profits, local governments, and educational institutions to train and hire apprentices in high-growth and high-tech
industries. For more information, please see https://innovativeapprenticeship.org/wp-content/uploads/2017/08/AAI-Success-
Stories-Summer-2017.pdf. c
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Clean Energy Jobs in Pennsylvania
Between 2017 and 2019, the clean energy industry in Pennsylvania saw a nearly nine percent growth
rate, creating just under 7,800 new jobs for residents across the state in only two years. In the last
quarter of 2019, the clean energy economy totaled to about 97,200 workers in the labor force (Figure 1)

Before the onset of the COVID-19 pandemic, the clean energy industry was growing faster than the
overall statewide labor market by four to seven percentage points annually. At the end of 2019, clean
energy jobs accounted for almost two percent of all jobs in the state.8
F IGURE 1. CLEAN E NERGY EMPLOYMENT, 2017 – OCTOBER 2020
98,000 97,186 10.0%
9.0%
96,000 8.7%
8.0%
94,245
94,000 7.0%
6.0%
92,000
5.4%
5.0%
90,000 89,391
4.0%
88,000 3.0%
2.0%
86,000
1.0%
84,000 0.0%
2017 2018 Q4 2019 (pre-COVID-19)
Total Employment Cumulative % Change
8Statewide employment data is taken from the Bureau of Labor Statistics, Quarterly Census of Employment and Wages. Data
accessed December 2020

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2021 Pennsylvania Clean Energy Workforce Development Needs Assessment & Gap Analysis
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COVID-19 IMPACTS TO THE CLEAN ENERGY LABOR MARKET
Following two years of marked growth, clean energy businesses were hard hit by the global pandemic

Between March and December 2020, Pennsylvania’s clean energy businesses have shed a net 13,200
jobs, wiping out any job gains from 2017 through 2019

Losses were concentrated in March through May, at the peak of business closures and social distancing
measures. Throughout these three months, the clean energy industry lost more than 17,000 workers

Since June, however, the sector has seen gradual gains in employment, adding back about 4,000 jobs
from June through December (Figure 2)

Despite these job gains over the last several months, overall employment across Pennsylvania’s clean
energy businesses remains six percent below the 2017 baseline and about 14 percent below the 2019
baseline (Figure 3)

F IGURE 2. MONTHLY JOB C HANGE , MARCH 2020 - DECEMBER 2020
2,213
207 322 325 439 166 320
-462
-6,389
-10,346
March April May June July August September October November December
10

Please refer to the 2020 Clean Energy Employment Report or the forthcoming 2021 Clean Energy Employment Report. The 2020 Pennsylvania Clean Energy Employment Report highlighted …

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