Ideal Energy apprentices work on a rooftop solar project.
After the 2022 passage of the Inflation Reduction Act (IRA), demand for solar apprentices rose significantly. In order for 1-MW and larger solar projects to qualify for the enhanced value of the IRA’s tax credits, they must meet certain prevailing wage and apprentice (PW&A) requirements. Projects that comply with PW&A are eligible for a five-times enhanced credit.
While the U.S. Dept. of the Treasury has released guidance on PW&A, it can be a complex process. Apprenticeships in the solar industry are paid on-the-job training opportunities with the aim of qualifying participants to become electricians, operating engineers and more. There are apprenticeship programs across the country offered by associations and educational institutions intended to cultivate a skilled clean energy workforce.
However, these programs may not be enough. Projects must have an adequate number of journeyman workers to fulfill the apprenticeship ratios, but there is an absence of registered apprenticeship opportunities geared to solar.
“We can no longer rely solely on existing electrician training programs at community colleges or trade unions. It’s clear we need a larger, more concerted effort to offer opportunities to obtain electric licenses,” said Brie O’Malley, director of ReVision Energy’s Training Center.
A number of solar companies like ReVision are spearheading this effort.
Contractor programs that foster apprenticeship development
The ReVision Energy Electrical Apprenticeship Program (REEAP) is a four-year program that provides a combination of paid work experience and online classroom instruction, prepares apprentices for state licensure exams, and qualifies employee-owners for two apprenticeship positions at ReVision.
“It is a program that we envision being shared with other organizations to combat this problem at a more widespread scale,” O’Malley said.
ReVision Energy apprentices go through training on a practice roof.
REEAP attracts talent from other countries as it offers paid opportunities for immigrants to earn their licenses and practice in the United States. O’Malley pointed to one apprentice from Ukraine, Russell Liubychenko, who “is setting a record for how fast he’s going through this. As soon as his hours are completed, his talent as an electrician will be a great addition to any organization.”
Similar to ReVision, Blue Ridge Power takes a broad view regarding the potential impact of its PowerUp apprenticeship program.
“Our primary objectives extend beyond mere IRA compliance; we aim to foster responsible growth within our workforce as well as give young people the opportunity to participate in this fast-growing industry,” said Lee Spruill, workforce development program manager at Blue Ridge Power.
Blue Ridge also has a pre-apprenticeship offering for high schoolers that serves as a pathway to its apprenticeship program.
Ideal Energy’s apprenticeship program supports entry-level and experienced electrical apprentices through its paid certification process to become electrical journeymen and master electricians. It also focuses on employee retention. COO Amy Van Beek said some of the company’s longest-standing employees came from the program, pointing to Ideal’s master of record, Brian Robbins — its very first enrolled apprentice.
Best practices for creating an apprenticeship program
There are a few ways to ensure a company-run apprenticeship program is a success. Recruiting an adequate number of skilled masters and journeymen helps to provide the administrative oversight to keep quality high. Participants are more motivated when the program is structured so they have a financial investment. Clear criteria for program eligibility is vital as well.
“Typically, workers need to demonstrate qualities such as reliability and work ethic, mechanical aptitude, problem-solving skills, observance of safety protocols and the ability to perform well on a team,” said Ideal’s Van Beek.
A graduate from Blue Ridge Power’s PowerUp Academy.
Spruill at Blue Ridge said consulting experts within the company when developing a program can ensure apprenticeship criteria is aligned with the skills required for success. He also recommended engaging with local education agencies to broaden recruitment efforts and ensure comprehensive training.
Attracting talent is a challenge too. O’Malley at ReVision suggested emphasizing that the program is a paid opportunity with benefits that gives participants consistent support from peers and instructors.
“Whether a participant is a career-starter or making a career shift, knowing that they will have a group to lean on makes the experience feel more accessible,” she said.
Upon completion of the program, apprentices are co-owners at ReVision and can grow within the company, something that helps prospects recognize that the program will have broader implications on their careers.
Ensuring these apprenticeship programs can prepare workers for jobs even beyond solar power is another important feature for success.
“These programs have to prepare apprentices with the entire body of knowledge a certified electrician should have,” O’Malley said. “They need to have opportunities to practice all types of electrical work, not just the electrical work required at the company hosting the program.”
Additional barriers to leveraging the IRA’s tax benefits
Though these contractor-created programs help fill the need for apprenticeships required to qualify for IRA benefits, there still remain other difficulties when it comes to meeting PW&A mandates.
Reporting requirements are quite rigorous, resulting in additional paperwork, record-keeping and contract complexity. Van Beek pointed out that smaller or younger companies without adequate human resources departments may have difficulty managing the requisite nuanced reporting.
Laura Cataldo, a director in tax firm Baker Tilly’s development advisory practice, explained that many companies do not have experience meeting project requirements set by the Davis-Bacon Act, nor do they understand how the IRA mandates differ. This has resulted in “a basic lack of understanding of who is covered by prevailing wages and how to calculate fringes and pay apprentices.”
To help with these challenges and ensure clean energy projects earn the extra tax incentives, Baker Tilly created an end-to-end compliance technology solution where users can establish and document PW&A and penalties. The compliance portal validates payroll information by connecting with the prevailing wage management system LCPtracker. The system then conducts all compliance testing, catalogs penalties, compiles recordkeeping and communicates with the contractors and the credit-seeker.
According to Cataldo, the need for PW&A compliance support will only grow over time as the industry evolves in the wake of recent legislation.
“Workforce goals and compliance requirements are becoming more standard in public projects stemming from the Infrastructure Investment and Jobs Act, the CHIPS and Science Act and the IRA, as well as private projects seeking to meet ESG goals,” she said.
Looking to the future of apprenticeship program growth
Both Ideal Energy and Blue Ridge would like to see legislation that would promote proliferation of solar apprenticeship training programs. Van Beek said financial incentives going directly to solar companies would expand training for the workforce through apprenticeship programs, including programs that focus specifically on solar technologies.
Spruill said grant funding and guidance services for companies navigating the complexities of PW&A requirements for the first time would also help foster job growth and market expansion.
Regardless of further government assistance, companies will keep learning from each other to build successful training programs. Solar apprenticeships are a crucial tool for both achieving the full IRA tax credits and building the workforce needed to meet the country’s increasing demand for solar.
