India’s Renewable Energy Sector Experiences Job Growth Amid Ongoing Attrition Issues

Key Takeaways

Employment in India’s renewable energy sector is expected to grow by 18.9% this fiscal year, a decline from last year’s 23.7% increase.
High demand for specialized skills in engineering, project management, and renewable energy solutions is evident, particularly for younger employees.
Government initiatives are crucial in shaping workforce opportunities amidst challenges like high attrition rates and skill gaps.

Renewable Energy Employment Growth in India

India is making significant strides toward achieving its goal of 500 GW of non-fossil fuel capacity by 2030. According to a report from TeamLease Services, a staffing firm, employment in the renewable energy sector is projected to grow by 18.9% in the current fiscal year. However, this growth signifies a slowdown from last year’s remarkable increase of 23.7%, which had followed a more modest rise of 8.5% in FY23 and 10.4% in FY22.

Despite the expected slowdown, the renewable energy sector continues to be a key contributor to job creation, particularly in contractual positions. The workforce is predominantly young, with significant portions of employees aged between 26-30 years (26.9%) and 31-35 years (27.9%). There is also a notable representation of experienced professionals, with 16% of workers aged 35-40 and an additional 18.2% over 40.

The demand for specific specialized skills is increasing, particularly in areas like engineering, project management, data analytics, and sustainable energy solutions. Companies are seeking professionals skilled in solar, wind, and hybrid energy systems, with growing needs for roles such as solar PV technicians, roofers, production and storage operators, waste management specialists, and energy auditors.

Educational qualifications are vital for entry into this sector. This fiscal year, nearly 44.1% of contractual employees possess an ITI or diploma, while 28.9% are graduates. About 14.6% have completed their secondary education, and only 4.1% hold postgraduate degrees, highlighting the industry’s reliance on vocational and skill-based training.

Regionally, states such as Rajasthan, Gujarat, Karnataka, and Tamil Nadu are at the forefront of employment generation in the renewable energy sector due to large-scale solar energy initiatives. Government policies have been instrumental in boosting this growth, with programs such as the PM Surya Ghar: Muft Bijli Yojana, National Green Hydrogen Mission, PM KUSUM, and the Solar PV Module PLI Scheme playing critical roles in fostering investment and expanding employment opportunities.

Subburathinam P, Chief Operating Officer of TeamLease Services, remarked on the sector’s potential, stating, “India’s renewable energy sector is at a crucial inflection point, driven by strong government initiatives and rising corporate investments.” Nonetheless, high attrition rates pose a significant concern for employers. While attrition decreased from 39.1% in FY22 to 33.5% in FY24, it is projected to climb again to 39.4% this fiscal year. Work tenure statistics reveal that 38.6% of contractual employees have less than a year of experience, with only 11.8% remaining with the same organization beyond four years.

Addressing these challenges requires a focus on high attrition and skill gaps through structured workforce planning. Subburathinam emphasized the importance of integrating vocational training, digital skill development, and effective retention strategies to build a sustainable talent pipeline in the renewable energy sector. As India continues to advance its renewable energy goals, it remains critical to nurture a skilled and stable workforce equipped to meet the demands of this dynamic industry.

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