German renewable energy jobs hit record, but policy threat looms

Employment in Germany's renewable energy sector reached a record high last year, but a looming shift in government energy policy could put "thousands of jobs" at risk, the Bertelsmann Foundation has warned.

Some 436,000 people were employed in the sector in 2025, almost 4% more than in 2023, the previous record year, the foundation reported on Wednesday.

Wind power remained the largest employer among renewable energy industries, with the number of jobs rising by around 30% between 2023 and 2025 to 172,000.

"Wind energy therefore accounts for almost a third of all jobs in the renewable energy sector," the foundation said.

Photovoltaics also remained an important pillar of the sector, with almost 100,000 employees, followed by the production and installation of heat pumps, which employed around 72,000 people last year.

Less investment means fewer jobs

According to the analysis, investment in renewable energy and employment figures are closely linked.

In addition to expanding renewable energy capacity, Germany also needs to retain domestic value creation, said Jana Fingerhut, a labour market expert at the Bertelsmann Foundation.

For example, although more and more photovoltaic systems are being installed, the number of jobs in the sector is falling because solar modules are mostly produced abroad, she said.

"The manufacturing base that was still so strong in Germany 15 years ago has disappeared. We must not allow the same thing to happen with the production of wind turbines, heat pumps and inverters," Fingerhut warned.

The foundation said employment figures also reacted sensitively to political conditions, pointing to the example of heat pumps.

After more than 350,000 new systems were installed in 2023, expansion fell sharply a year later amid debate over Germany's heating law, before rising again to just under 300,000 heat pumps in 2025. Jobs developed in parallel, the foundation said.

Foundation urges job-safe reforms

The foundation called on the government to design planned energy reforms in a way that safeguards jobs.

It warned that jobs could be lost if smaller solar installations no longer receive subsidies, if uncertainty slows investment or if clear rules for climate-friendly heating are removed.

Economy Minister Katharina Reiche wants to lower costs and align the expansion of wind and solar power more closely with the lagging development of Germany's electricity grid.

The government is also considering scrapping subsidies for small new rooftop solar systems.