Minnesota’s clean energy workforce has finally recovered from a decline during the COVID pandemic and stands larger than ever.

Clean Energy Economy Minnesota (CEEM) recently released annual jobs report contains encouraging signs of an economic recovery. The state had 62,102 clean energy jobs in 2023, the highest total ever recorded, and the industry grows at five times the pace of the overall economy. Clean energy jobs are expected to jump 6% this year.

During the COVID outbreak, the number of clean energy jobs declined to around 55,000. Now things are looking up, with an increase of 4% last year.

“It has taken us nearly five years to surpass that pre-COVID level,” said CEEM Executive director Gregg Mast. “But I think it’s a testament to or proof that through smart policies, combined with the ingenuity of our clean energy business community, we’re delivering jobs and economic benefits statewide.”

Mast pointed out that the jobs are nearly equally shared geographically, with more than 40% located outstate, roughly matching its share of Minnesota’s population. The rest are in the Twin Cities region. “That’s proof we’re having an impact across the state,” he said.

Should anyone think clean energy represents just a green nugget in the state’s economy, CEEM points out clean jobs surpass the number of lawyers, web developers, and real estate agents combined.

The breakdown of the types of jobs remains like other years, with a few surprises. The largest sector, energy efficiency, employs 44,511 workers. Jobs in different sectors include 9,060 in renewable energy, 4,761 in clean transportation, 3,027 in grid and storage and 744 in clean fuels.

Mast said wind and solar jobs continue to rise, but the fastest growing sector, clean transportation, saw a 13% increase, adding 555 employees. The electric vehicle subsector grew even quicker.

“That’s a credit to businesses becoming even more engaged in this opportunity that they see in the market and strong policy,” he said.

Mast said that driving the growth of the clean energy economy has been a policy. The federal government’s Inflation Reduction Act has brought billions of dollars in incentives to clean energy businesses and consumers looking to reduce the cost of appliances, electric vehicles and other products.

The state’s 2023 legislative session added more incentives for clean energy technologies and set a goal of carbon-free electricity by 2040. Market demand has picked up solar and appliances like air source heat pumps.

CEEM members say the report reflects what they are seeing in Minnesota. Eric Stocker, manager of government relations for the Virginia-based AES Corporation, said he believes Minnesota’s policies allow it to “take advantage” of the Inflation Reduction Act. Transmission reforms, allowing lines to be cited on public rights-of-ways and changes to the renewable energy portfolio standards, will only help the outlook for jobs in the future, he said.

Stocker said that AES, a utility and power generation company, sees clean energy as a central pillar of its business. Minnesota has been an emerging national leader in clean energy, he said, and in the Midwest, too, along with Michigan and Illinois.

In Minnesota, AES is planning a 125-megawatt solar installation called Birch Coulee in Renville, which is in the process of being cited and permitted. Once completed over the next four years, the solar panels will power more than 25,000 homes.

It’s the kind of project that makes Minnesota attractive to AES. “It brings in revenue and makes companies like AES very interested in developing [in Minnesota], meeting that market demand and helping the state with their renewable portfolio standard,” Stocker said.

Becky Wacker, a CEEM board member who is the director of energy services for Trane Technologies, said the report reflects what her employer has been seeing in Minnesota, where it has a staff of more than 1,100. She said more job seekers are contacting Trane because it has clean energy-related jobs.

Electric vehicle sales consultant Richard Trebtoske works for Hopkins-based Pump and Meter, Inc. The 94-year-old petroleum service company hired Trebtoske three years ago to sell stations on installing and EV chargers. He tells gas station owners that EV drivers need more places to charge, and they are likely to spend money on convenience products.

The market “is getting better each year,” he said. “The projections up to 2035 say there’ll be nearly 80 million [electric] vehicles on the road. So, we got a lot of growth ahead of us.”

While the report shows gains for Minnesota’s clean economy, a looming obstacle could hamper continued growth: a lack of workers. Mast said more than 81% of clean energy employers say they have trouble filling jobs and that Minnesota needs to continue adding more workforce training.

“It underscores the need for policymakers to focus intentionally on expanding workforce training, apprenticeship programs and the talent pipeline because that is going to be key to achieving a clean energy future,” Mast said.

Other issues could clip growth. Stocker said opposition groups have begun fighting clean energy projects. The industry has to combat that with educational programs highlighting the advantages of solar and wind projects and how they create jobs and tax revenue for rural counties.

The presidential and state elections this week also could create significant uncertainty. Businesses and CEEM may be spending next year defending state and federal policies, encouraging workforce programs and continuing transmission expansion.

The report was created with the support of the national, nonpartisan organizations Environmental Entrepreneurs and Evergreen Climate Innovations.