The Impact of Solar Energy on Job Creation and Economic Growth

Posted by WAAREE on 1st Jan 2024

The Impact of Solar Energy on Job Creation and Economic Growth

India has set an ambitious target to fulfil 50% of its electricity needs from renewable sources by 2030. This national goal presents a tremendous economic opportunity, with the solar sector alone poised to be worth over $20 billion. As one of the country’s leading solar brands, Waaree Solar is playing a pivotal role in realizing this vision.

Employment in Renewables Outpacing Conventional Energy

Globally, renewable energy jobs are expanding five times faster than overall employment. India mirrors this trend; the country’s solar workforce has expanded by 165% over the last 5 years. As per NITI Aayog estimates, ambitious renewable targets could generate over 10 million jobs in India by 2047.

Solar jobs involve manufacturing, engineering, construction, sales, project development, and more. States like Tamil Nadu, Rajasthan, and Andhra Pradesh are emerging as solar job hubs. Significantly, renewable energy jobs also have higher pay - average monthly salaries in solar are roughly 20% higher than economy-wide averages, according to CEEW analysis. Thus the clean energy transition will give India’s growing working-age population gainful and steady livelihoods. Ambitious solar targets hence address sustainability, Atmanirbharta, and job creation simultaneously.

The renewable energy sector has seen tremendous growth globally in recent years. In particular, the solar power industry stands out for rapidly expanding and creating economic opportunities worldwide. With countries aiming to cut carbon emissions and adopt clean energy, solar technology has emerged as an optimal solution that is not only sustainable but also generates lasting employment.

Solar Supports Energy Access and Savings

By generating cheaper units compared to imported coal and gas, solar energy protects households and MSMEs from fuel price volatility. DEC analysis shows solar power costs roughly ₹2.5-4 per unit, while coal averages ₹4-6 per unit. Affordable solar electricity facilitates productivity enhancement and frees up capital for job-creating investments.

Furthermore, decentralized solar mini/microgrid solutions are enabling reliable energy access in remote areas without transmission infrastructure. Solar water pumps are upgrading irrigation practices across farms. Such expansion of off-grid solar, which Waaree actively enables, is driving financial inclusion and livelihood creation at the grassroots.

Accelerating Local Economies

Studies by IRENA and CEEW confirm increased renewables penetration, especially solar and wind, directly accelerates GDP, industrial growth, and jobs in aggregate. Hence, beyond the direct job numbers, solar proliferation creates a second-order positive impact across sectors due to efficiency gains and cost savings. Solar investments also unlock private capital flows to fund new projects and grid expansion, mobilizing local investment pools for economic progress.

By spurring entrepreneurship as well, solar adoption empowers local communities. Farmers are earning steady lease rents from solar developers, channelling funds back into villages. Decentralized solar power facilitates the rise of new MSMEs and village enterprises, raising rural prosperity.

Environmental Remediation

In addition to catalyzing economic opportunities, the transition towards solar serves as a key avenue for environmental remediation as well.

By offsetting fossil fuels and supplying clean power to industries and infrastructure, mass solar adoption decreases air pollution and improves public health. Fewer pollutants and related illnesses ultimately translate into substantial savings for healthcare expenditures worldwide.

Furthermore, research shows that every million dollars invested in solar or wind projects generates at least five times as many jobs as the same amount invested in coal or gas. Solar jobs also tend to be higher-paying on average compared to fossil fuel energy jobs. Hence, the shift towards renewables like solar effectively addresses livelihoods and environmental issues holistically.

India Charging Ahead with Solar

As a tropical country blessed with abundant sunlight, India holds tremendous potential to leverage solar to power its economic rise sustainably. Under India's Intended Nationally Determined Contribution (INDC), the country aims to attain 40% of its electricity from non-fossil fuel sources by 2030. This presents a $20 billion opportunity for the Indian solar sector, according to climate think tank CEEW.

As energy prices fluctuate and inflation soars globally, solar can provide a cushion by lowering and stabilizing energy costs for consumers. The technology acts as an insurance policy during global crises, preventing shocks to domestic economies. Countries pursuing self-reliance in energy with greater solar capacity will be better positioned financially.

Waaree, India’s leading solar photovoltaic panel manufacturer, believes the country's future growth lies in solar energy solutions. As a premium solar brand, Waaree has been contributing significantly towards scaling India's solar industry and making the country self-reliant on energy. Since its inception in 1989, the company has expanded its manufacturing capabilities across multiple Indian states and continues to provide top-tier solar products and services nationally and globally.

By adopting Waaree’s diverse solar energy systems, individuals and organizations can reap the economic benefits of cheaper solar-powered electricity for decades while reducing their environmental impact. The transition towards renewable energy and solar power in particular will be vital for creating jobs, enabling sustainable industrial growth, and leaving behind a habitable planet for posterity, get in touch with Waaree's solar experts for recommendations customized to your needs. Invest in solar energy for a brighter, greener future.