Report: Minnesota saw strong growth in clean energy jobs last year, but slowdown expected
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A new report says Minnesota added nearly 1,700 clean energy jobs last year, outpacing the overall state economy — although federal policy shifts could mean a slowdown is ahead.
Clean Energy Economy Minnesota, an industry-led nonprofit, annually estimates the number of people working in clean energy fields, including solar and wind energy, electric vehicle manufacturing and energy efficiency.
Its latest report released Wednesday estimates that number grew to almost 64,000 in 2024, a 2.6 percent increase from the previous year. Jobs in clean energy-related fields grew more than two times faster than the state's total workforce.
However, the report doesn’t reflect the effects of President Donald Trump’s tax and spending act, which Congress passed in July. It ended some tax credits for clean energy projects on Dec. 31.
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"We're excited about growth,” said Cathy Liebowitz, senior manager for membership engagement with Clean Energy Economy Minnesota. But she added, “A lot of this is still coming from what we have historically seen, not this uncertainty of where we are today."
About two-thirds of Minnesota's clean energy jobs are in energy efficiency, such as upgrading heating and cooling systems, installing LED lighting or manufacturing power-saving appliances.
Regardless of what happens with federal policy, the energy efficiency sector is likely to see continued strong demand, Leibowitz said.
“Minnesotans are thinking about reliability. They're thinking about affordability,” she said. “One of the easiest ways for us to get there is to reduce the need for (energy), and taking a real deep dive look into our buildings, our infrastructure.”
The only sector that didn’t grow was clean transportation, including electric vehicles, hybrids and hydrogen or fuel-cell technology. Employment in those industries dropped by about 220 positions to 4,500 jobs statewide.
Despite the uncertainty surrounding federal policy, some clean energy businesses still expect to grow, thanks to an increased demand for energy from data centers and rising electricity prices.
Martin Morud, owner of TruNorth Solar in Arden Hills, said losing the federal tax credit for residential solar projects is “a big deal,” but he’s still anticipating growth next year.
“It doesn't change what we strive for, and it certainly hasn't changed Minnesotans’ view of what they desire: cheaper, cleaner, more reliable power,” Morud said.
