Government policies put record in renewable energy jobs at risk in Germany – report

Government policies that slow the energy transition are putting thousands of jobs in Germany’s renewable energy sector at risk, undermining a record employment figure reached last year, according to a report by the Bertelsmann Foundation. The number of people employed in the country’s renewable energy sector reached 436,000 last year, an increase of four percent over the previous peak in 2023.

The foundation warned that the government's reform plans would hit employment in the sector hard, pointing to previous policy changes that also caused employment slumps – such as cuts in solar support from 2011 and the introduction of wind energy tenders from 2017.

It pointed to government plans to cut support for small-scale solar, allow the continued installation of oil and gas boilers, cut compensation for renewable energy installations in case of grid bottlenecks, and to build gas power plants instead of using batteries. Economy minister Katherina Reiche has said the government remains committed to the energy transition, but needs to cut costs to reconcile climate action and economic competitiveness.

Wind energy retains its position as the sector’s most important employer: the number of jobs in this sector rose by around 30 percent to 172,000 between 2023 and 2025, accounting for more than a third of all jobs. Biomass employed around 97,000 people, followed by solar with just under 90,000, and heat pump installations with around 72,000, the report said.

“Employment is growing in areas where planning security is encouraging private investment,” Bertelsmann labour market expert Jana Fingerhut said, adding that renewable energy investments climbed to a record 37.5 billion euros. However, renewable energy expansion alone is not enough to safeguard jobs. 

“Domestic production and manufacturing are also needed, as the example of photovoltaics demonstrates,” Fingerhut said. While more and more photovoltaic systems are being installed in the country, employment in the sector is currently falling. "This is because the solar panels are manufactured abroad," she added.

The foundation said the government must not repeat past mistakes to keep the production of wind turbines, heat pumps and converters in Germany. "This is not just about jobs, but also about strategic independence in the energy sector," Fingerhut said. This would require a reliable energy policy that extends beyond individual electoral terms, the labour market expert said.