The Inflation Reduction Act (IRA) marks a historic investment in clean energy infrastructure that will have a transformative impact on local economies and communities across the country.
With long-term market stability to support the widespread deployment of renewable energy and energy efficiency technologies, the industry is projected to add nearly 9 million workers over the next decade.
At a pivotal time for the clean energy industry, registered apprenticeships programs (RAPs) present a powerful tool to develop, scale, and sustain the pipeline of trained talent needed to keep pace with accelerating demand. RAPs can help address critical workforce challenges while creating inclusive pathways to family- and community-sustaining clean energy careers. The Interstate Renewable Energy Council (IREC) is working closely with industry and workforce intermediary partners to support clean energy employers navigating the RAP landscape.
Although apprenticeships have not been widely utilised by clean energy employers to date, the Inflation Reduction Act is quickly changing the training landscape. The IRA ties most of the substantial tax credits and other manufacturing and supply incentives to new apprenticeship and prevailing wage requirements. All renewable and energy storage projects greater than 1 MW breaking ground this year will need at least 12.5% of construction labor hours to be provided by registered apprentices, ramping up to 15% in 2024 and beyond to receive the full value of the credits. Clean energy companies with four or more construction employees should be making plans to either participate in or launch their own registered apprenticeships to be ready for the new standards. While the IRS may have some additional clarifying guidance, the regulations for administering RAPs are well established.
What is a Registered Apprenticeship Programme?
A RAP is an employer-driven, customisable training model that has been validated to meet standards defined by the U.S. Department of Labour (DOL) or a State Apprenticeship Agency. By providing comprehensive training in an occupation, and a clearly defined, high-quality career pathway, registered apprenticeships are one of the best ways to develop and retain a skilled workforce in a given industry.
Most importantly, a RAP is a paid job from day one. Apprentices produce high-quality work under the guidance of a mentor and receive classroom-based technical instruction to support job-related skills and knowledge. Apprentices earn scheduled wage increases as they gain experience and proficiency in the occupation, and upon completion attain a DOL-issued, nationally-recognised credential as a skilled practitioner of the trade. This “earn while you learn” model makes RAPs an effective recruitment tool, particularly for veterans (who can receive GI Bill benefits to participate), transitional job seekers, young workers, and other diverse candidates.
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While many employers choose to administer their own program in-house, companies may also participate in apprenticeships sponsored by joint labor-management programs (i.e., union programs), trade associations, educational institutions, or community-based organizations. Many joint programs across electrical and building trades are incorporating solar and other clean energy content into their apprenticeship curriculum, and several union locals are NABCEP Associate Registered Training Providers. RAPs for solar industry-specific occupations are currently limited as the DOL does not recognize the occupation of Solar Installer—or any solar-specific occupation—as “apprenticeable.”
Fortunately, several existing approved occupations can be leveraged to meet an employer’s needs. The Construction Craft Laborer, with a two-year Work Process Schedule, is the occupation most commonly adapted to train solar installers. John A. Logan College in Illinois leads an apprenticeship program using this occupation, which requires employers to provide at least 50% of work-based learning on solar jobs, where apprentices learn site preparation, racking installation, and mounting of modules among other construction-related job tasks. Similarly, using the existing Energy Auditor occupation, the Utility Workers Union of America leads a Renewable Energy Specialist apprenticeship program to train workers to install and maintain utility-scale solar, wind, and energy storage projects.
In just over half of states, apprenticeship programs can be approved at the state level, which may offer a bit more flexibility, depending on state licensing requirements. For example, solar employers across the Sunshine State may now participate in a two-year Solar Energy Apprenticeship Program, approved by the Florida Department of Education, to train solar journeyworkers in photovoltaic and solar thermal technology, system design, installation, and operations and maintenance, leading to certification as a Florida solar contractor. On the west coast, the Oregon Limited Renewable Energy Technician apprenticeship program (modified from the Wind Turbine Technician occupation) licenses journeyworkers specialised to work on renewable energy projects up to 50kw.
Electricians, one of the most in-demand clean energy jobs, are commonly trained through registered apprenticeships. Recognizing the challenges presented by a growing shortage of licensed electricians, in 2018, ReVision Energy in Maine and New Hampshire became the first employer-based apprenticeship program in the U.S. that provides the 4-year in-house technical training for renewable energy professionals to earn electrical licensure. As Vaughn Woodruff, Director of the ReVision Energy Training Center, explained at the most recent IREC Vision Summit, “The discussion we’re having [about workforce training] is the most important conversation in the United States about clean energy. We have the technology, we have the policies—we just need the people.”
IREC is creating resources to help employers train and retain solar workers through registered apprenticeships. We recently launched a Registered Apprenticeships Toolkit for Clean Energy Employers and look forward to expanding our efforts in this space in the months to come. The IRA finally puts bold clean energy goals within reach. Apprenticeships will be key to ensuring a highly qualified and diverse workforce is prepared to power the transition to a clean energy future.
