As the climate crisis intensifies, casting a long shadow over our planet’s future, the urgency to combat it has never been more acute. In a bold move to address this existential threat, President Biden has earmarked an impressive $400 million, signaling a significant commitment to environmental action. However, money alone cannot forge the path to sustainability. The cornerstone of this monumental task is a skilled workforce capable of constructing the energy systems of tomorrow — a workforce that, as of now, is glaringly absent. This shortage poses a critical question: What are the root causes of this labor gap, and what repercussions might we face if left unaddressed? Nexamp, a trailblazer in the clean energy sector, is stepping up to fill this void. By offering education and specialized training to workers from underserved communities, Nexamp aims not just to mitigate the labor shortage but to lay the groundwork for an inclusive, sustainable future, proving that social equity and environmental stewardship can go hand in hand.

What Is Causing the Shortage?

To understand why the Bureau of Labor Statistics reports a shortfall of 413,000 workers in the construction industry and 764,000 workers in manufacturing, we must revisit the economic downturn of 2014. Unemployment rates were surging, national banks were losing billions, hedge funds were capsizing, and investors were fleeing — the situation was dire. The oil and gas industry, like many others, suffered greatly, with nearly half a million people losing their jobs. When the pandemic struck six years later, the workforce was further diminished. Contributing to this dwindling talent pool were factors such as high turnover rates, uncertainty within the industry, and hiring delays. Even without these issues, the labor shortage would still be a pressing concern today.

Recognizing the dual challenges of economic recovery and environmental sustainability, in 2022, the US government took a historic step forward. The Inflation Reduction Act was passed, signifying a monumental commitment to domestic clean energy production and setting the nation on course for approximately 40% emissions reductions by 2030. This landmark legislation earmarks:

This is the most pro-climate legislation in US history, yet it represents more than an environmental milestone; it is a clear call for workforce development. To leverage this investment effectively, the US is tasked with filling 9 million jobs over the next decade. Simply re-hiring those who were displaced during previous economic downturns is not a viable solution, as many have since transitioned to new careers or furthered their education. Instead, there’s a pressing need to cultivate a skilled and diverse workforce capable of driving the nation toward an emission-free future. But to do so, we must first address the existing labor shortage that threatens to undermine these ambitions.

Consequences of the Shortage

The labor shortage in the clean energy sector is not just a bottleneck for project completion; it’s a critical roadblock on the path to achieving national and global climate goals. With the Inflation Reduction Act aiming to propel the US towards significant emissions reductions by 2030, the stakes couldn’t be higher. However, the current labor market is ill-prepared to support this ambitious transition, leading to several profound consequences:

Delayed Projects and Increased Costs: A scarcity of skilled labor is causing delays in the deployment of clean energy projects, from solar farms to wind turbines. These delays not only hinder progress toward sustainability targets but also escalate project costs, affecting the overall economic viability of clean energy initiatives.

Compromised Quality and Safety: The pressure to meet deadlines might force companies to hire less experienced workers, potentially compromising the quality of installations and maintenance and increasing safety risks. This can lead to a higher incidence of workplace accidents and longer-term reliability issues with clean energy infrastructure.

Underutilizing Federal Funding: The $400 million allocated by President Biden for combating the climate crisis could be underutilized if there aren’t enough qualified workers to carry out the projects funded by this initiative. This could lead to missed opportunities in accelerating the clean energy transition.

Strain on Clean Energy Innovation: A shortage of skilled labor affects not only the deployment of existing technologies but also the development of new solutions. Innovation in clean energy relies on a diverse workforce of engineers, technicians, and scientists who can push the boundaries of current technologies.

Barriers to Achieving Emission Reduction Targets: Ultimately, the labor shortage threatens the ability of the US to meet its emission reduction goals. Without a workforce capable of scaling clean energy solutions, the ambitious targets set forth in the Inflation Reduction Act could remain out of reach.

For a project to qualify for IRA tax credits, it is stipulated that a certain percentage (which can vary by project or state but is often aimed to be around 10–20%) of the labor must be performed by a registered apprentice. This requirement is intended to ensure that projects not only contribute to the clean energy transition but also support workforce development. However, the current scarcity of registered apprentices in the clean energy sector underscores the need for significant investment in training and education programs.

How Nexamp Is Bridging the Gap

Nexamp recognizes that moments of transition often disproportionately benefit affluent individuals, perpetuating societal inequalities. In the face of the climate crisis, it is crucial to rectify this injustice and ensure that everyone has access to the opportunities presented by the clean energy transition.

"We need to approach workforce development efforts from a diversity, equity, and inclusion lens. I think that requires some different thinking. At Nexamp, we’re asking, 'How do we recruit from rural areas? How do we go out and build relationships in places where traditionally our organization and industry has not been represented."

– Marion Jones, VP, Workforce Development and DEIJ Engagement

Innovation Center — Alongside Junior Achievement out of Lawrence, Massachusetts, Nexamp is creating an innovation center that will serve almost 48,000 youth. By establishing a curriculum and offering internships and on-the-job training, we’re helping students carve their path into the clean energy workforce.

Fellowship — In 2024, Nexamp is launching a paid fellowship program that will sit in the Chicago office. The initiative will bring students through a rotational program, allowing them to see inside the industry and gain some on-the-job training while still in school.

Chicago Workforce Center Partnership — Nexamp has established a pipeline-to-employment partnership with the Chicago workforce centers to ensure residents in our host communities are aware of the job opportunities Nexamp’s presence creates. Interested parties gain skill-set training at the center, which prepares them for Nexamp’s intensive programs.

Solar Sunrise — Nexamp’s Clean Energy Deployment (CED) Solar Sunrise program is a one-year learning journey that will take participants through 3 job rotations: construction, engineering, and supply chain. Throughout the program, they will gain a deep understanding of Nexamp, its business, as well as the mission and values that guide everything. This program was originally Boston-based but has been expanded to Illinois to offer an opportunity for equity-eligible residents to pursue a pathway into the industry.

Clean Energy Catalyst — This 3-week hands-on training program covers administrative procedures, construction sequencing, engineering and supply chain impacts, reporting requirements, and environmental health and safety. Upon completion, participants will be qualified for a construction superintendent role.

One of the many advantages of the Climate and Equitable Jobs Act is that local organizations now have the funding to educate their residents about these opportunities. We’re partnered with a number of them (City Colleges of Chicago, Olive Harvey College, OAI, Inc., Chicago Urban League, Uplift Community High School, 22 Centuries Technologies, and Elevate), and their insight has been invaluable. For instance, many noted that transportation also represented a huge barrier for their residents. If the talent that we are seeking is not able to come to us, we’re going to them. So, instead of reporting to our headquarters in Boston and Chicago, our intensive programs take place at job sites in rural areas. And by design, the innovation center and fellowship programs support students where they choose to learn. These pipeline-to-employment partnerships support a whole spectrum of individuals who may be out of work, looking to pivot, people from equity-eligible communities, and those who were formally incarcerated. In a few short months, individuals who have no background in solar will find themselves qualified for a career in clean energy.

Education and hands-on training that leads to long-term careers in clean energy — that’s what Nexamp is offering. We are building the workforce we need to achieve our climate goals — and just like our solar farms, these programs are open to all. You don’t need any industry experience to kickstart a clean energy career at Nexamp — that’s what makes these programs so special. All we require is a desire to make a difference, an interest in clean energy, and a willingness to learn.

Paving the Way Toward a Sustainable Future

As we stand at the crossroads of innovation and sustainability, Nexamp emerges as a pioneering force dedicated to bridging the gap in the clean energy sector’s labor market. Through a multifaceted approach that prioritizes diversity, equity, inclusion, and justice, Nexamp is not just responding to the immediate needs of the labor shortage but is actively shaping a future where clean energy is accessible and beneficial for all. Our strategic initiatives, ranging from educational partnerships to hands-on training programs, are designed to empower individuals from all walks of life, enabling them to forge meaningful careers in the burgeoning field of clean energy.

As we look to the horizon, Nexamp stands as a beacon of hope and progress, demonstrating that with the right commitment and strategy, the journey toward a sustainable and equitable future is not only possible but already underway. Through its visionary leadership and innovative programs, Nexamp is laying the foundation for a world where clean energy not only powers our homes and businesses but also drives social change and economic opportunity for everyone.