(Reuters) – U.S. solar industry jobs rose 6% last year to nearly 280,000, their highest level ever, according to an annual study known as the National Solar Jobs Census published on Monday by the nonprofit Interstate Renewable Energy Council.

WHY IT MATTERS

Solar-generated electricity is one of the fastest-growing segments of the U.S. energy industry due to strong demand from corporations and governments to adopt cleaner sources of power and combat climate change.

The sector is a key part of U.S. President Joe Biden’s pledge that transitioning to carbon-free energy sources will create millions of good jobs.

Solar employment benefited last year from a rebound in utility-scale projects thanks to fewer supply chain disruptions and new incentives included in Biden’s 2022 climate change law, the Inflation Reduction Act.

BY THE NUMBERS

* U.S. solar jobs rose 5.9% to 279,447 at the end of 2023. * The utility-scale segment added 1,888 jobs to a total of29,708. * The residential installation sector added 5,945 jobs toreach 100,815, a rise of 6.3%. Growth in that segment slowedfrom the 11% gain in 2022 as high interest rates and a pullbackin incentives in California dampened demand for rooftop systems. * Manufacturing jobs were roughly flat at 33,273. Companiesthat produce components like inverters and racking are becomingmore labor-efficient, the report said.

WHAT’S NEXT

Solar jobs in 2024 may be about flat compared with last year, the analysis said. Residential installations have fallen sharply this year, and utility-scale projects face challenges including long waits to connect to the grid and a shortage of skilled labor.

(Reporting by Nichola Groom; Editing by Sonali Paul)