Members’ Corner – The situation of the installation sector in Catalonia and the challenges of the energy transition, FEGiCAT’s Report

The energy transition towards a more sustainable model is one of the global priorities in the fight against climate change, and Spain, particularly Catalonia, has set an ambitious roadmap towards climate neutrality by 2050. In this context, renewable energies are key to reducing dependence on fossil fuels and advancing towards a low-carbon economy. In Catalonia, the Renewable Energy Plan (PROENCAT 2050) sets concrete goals to meet these commitments, and installation companies are essential players in carrying out this transition.

Installation companies in Catalonia play a crucial role, especially in the implementation of renewable energy systems, such as photovoltaic, wind, and energy efficiency technologies. However, the sector faces significant challenges that threaten to slow down or even prevent the achievement of the goals set out in the roadmaps defined by both the General and Regional Administrations, including the shortage of qualified personnel, administrative bureaucracy, the slowdown in the expansion of photovoltaic self-consumption, and issues related to the management of the distribution network and the investments required to ensure its capacity. These issues must be urgently addressed to ensure that Catalonia and Spain meet their energy goals in the coming years, both at the regional and European levels.

The Profile of Installation Companies in Catalonia

The sector of installation companies in Catalonia is primarily composed of small and medium-sized enterprises (SMEs), many of which are micro-enterprises or self-employed individuals. According to the data obtained from the FEGICAT report, more than 85% of the installation companies in the region have fewer than 5 employees, a characteristic that is also widespread across the rest of Spain, indicating a predominantly micro-enterprise business structure. This structure provides companies with flexibility to quickly adapt to market demands, but it also presents significant limitations in terms of human and financial resources.

Flexible Companies but Limited by Resources

Small installation companies, despite their flexibility and ability to adjust to market needs, face a series of obstacles to implementing the energy transition on the scale required by PROENCAT 2050. The shortage of qualified personnel is one of the most urgent problems. Although the demand for photovoltaic installations, heat pump systems, upgrades to improve energy efficiency, and other renewable energies has increased considerably in recent years (despite the significant slowdown at the end of 2023 and especially in 2024 for photovoltaics), these companies face serious and concerning difficulties in accessing qualified personnel. According to the FEGICAT report, 56.5% of the installation companies indicated that they urgently need to hire qualified personnel, but 77.35% of the companies mentioned that they have difficulties finding workers with the necessary training.

The lack of specialized talent in the sector has become one of the main barriers limiting these companies’ ability to meet the growing demand for photovoltaic solar system installations, energy efficiency, and other sustainable systems. Based on the study conducted and considering the power that PROENCAT 2050 estimates will need to be installed, FEGICAT estimates that in order to achieve its decarbonization goals, Catalonia will need between 36,000 workers by 2030 and 109,000 qualified workers by 2050. Currently, the immediate need for professionals in the sector stands at 20,000 professionals, a concerning number, considering that the public and private education system graduates 1,500 students each year in intermediate degrees and 1,500 students in higher degrees, primarily fulfilling the demand of large companies.

This labor deficit not only affects small companies but also the entire sector, as the supply is also lower compared to larger companies that compete with micro-enterprises for specialized staff vacancies. The competition for qualified professionals is intensifying, creating an unbalanced labor market that further hinders the implementation of key projects for the energy transition, as well as causing sectoral inflation that directly impacts the social economy.

Challenges in Attracting and Retaining Talent

The FEGICAT report also highlights that the lack of specific training in renewable energies and the scarcity of educational programs adapted to the sector’s needs are key factors in the difficulty of attracting and retaining talent. To achieve climate neutrality goals by 2050, the installation sector would need to immediately hire 20,000 workers. By 2030, the sector will need to incorporate over 36,000 workers in the coming years, and this number will rise to 109,000 by 2050.

The educational sector, in collaboration with businesses, must adapt to the new training demands in renewable energies and establish a direct relationship between businesses and educational centers, without focusing exclusively on large companies. However, it is true that due to the lack of economic resources, public and private educational centers are primarily working with large companies, which guarantee better placement rates for students, in contrast to micro-enterprises that require a more significant effort and dedication. Therefore, it is crucial to design training programs that equip workers to tackle the technical challenges of the energy transition, and to provide the necessary means for these individuals to integrate into the SME and micro-enterprise ecosystem, which is the primary driver of Catalonia’s economy. Installation companies could also benefit from subsidies and support programs or communication campaigns that allow them to finance the continuous training of their staff and attract more young people to the sector.

The Need for Qualified Personnel: A Structural Challenge

Both PROENCAT 2050 and the PNIEC 2023-2030 identify the shortage of qualified personnel as one of the biggest challenges at both the national and regional levels, but the administrations have not been proactive in proposing solutions to this critical situation. PNIEC 2023-2030 states that, to achieve decarbonization goals by 2030, Spain will need to significantly increase the number of qualified workers in the renewable energy and energy efficiency sectors. In this context, Catalonia faces a significant labor gap, as previously mentioned.

Recommendations: Training and Alliances with Educational Centers

The FEGICAT report suggests that alliances with educational centers should be increased and the creation of specialized training programs that meet the needs of the renewable energy sector should be encouraged. These alliances will allow educational programs to be more specific and aligned with labor market demands. Additionally, installation companies should also be incentivized to offer work-based learning programs, where employees can gain the practical training necessary to address the sector’s challenges.

Sectoral Agreement

Currently, the siderometalurgical agreement is one of the most important labor agreements in the industrial and installation sector in Catalonia, and it has played a key role in training new workers. Traditionally, the figure of the apprentice has been one of the cornerstones for integrating young people into the sector, allowing them to gain practical experience while combining their training with work in sector companies. However, with changes in labor regulations and transformations within the agreement, the apprentice figure has lost relevance, leaving a gap in the traditional training options for young people.

This change has led to a greater demand for alternative training options that continue to address the need for practical training in the sector, with one of the most relevant options being the alternating contract. This type of contract, which combines theoretical training with practical work experience, allows young people to gain professional qualifications while working in the real environment of a company. The alternating contract has been positively valued, as it offers a more structured and flexible pathway for labor insertion, allowing workers, both young and adult, to acquire the necessary experience to develop professionally.

Although the disappearance of the apprentice figure may have left a gap in the traditional training system, the alternating contract emerges as a key alternative for integrating new workers into the industry, especially in sectors such as installation and siderometallurgy, which require a high level of technical and practical training. This model could be the foundation for addressing the shortage of qualified personnel that installation companies and other industrial sectors face, as reflected in the FEGICAT report on the need to train and attract new talent to the labor market.

Photovoltaic Self-consumption on Roofs: An Underutilized Potential

Photovoltaic self-consumption on roofs is a key area for the energy transition in Catalonia. According to PROENCAT 2050, the installation of solar panels on roofs has enormous potential to reduce dependence on traditional energy sources and promote energy independence. Catalonia has a useful roof area of approximately 21,968 hectares, but currently, only 2.5% of this area is occupied by photovoltaic installations. This highlights the vast untapped potential to expand photovoltaic self-consumption installations.

Slowdown in Growth and Economic Barriers

Despite the growth in roof solar panel installations, the rate of expansion has slowed in 2024. This slowdown in the photovoltaic market is due to several factors, such as the drop in energy prices, reduction in public aid, and the perception of high initial investment costs. The FEGICAT report highlights that the lack of fiscal incentives and bureaucratic complexity are among the main obstacles to accelerating the deployment of photovoltaic self-consumption in Catalonia.

PNIEC 2023-2030 also emphasizes that photovoltaic self-consumption is a priority area for meeting emissions reduction and decarbonization goals. However, slow administrative processing and high installation costs remain significant barriers for consumers. Despite efforts to simplify procedures and offer fiscal incentives, the adoption of photovoltaic technology remains insufficient.

Proposals to Improve Photovoltaic Self-consumption

The FEGICAT report proposes a series of measures to accelerate the deployment of photovoltaic installations on roofs, such as simplifying administrative procedures, creating new subsidies, and promoting collective self-consumption. In addition, it is suggested that industry guilds and associations work together with the government to develop public policies that facilitate installation and reduce costs for consumers.

Growth Forecast and Risks to the PROENCAT Goals

Despite advances in the energy transition in Catalonia, the FEGICAT report warns that the sector of installation companies continues to face significant challenges that could slow down progress towards the goals set for 2030. Both PROENCAT 2050 and PNIEC 2023-2030 agree that if issues such as the lack of qualified personnel, bureaucratic barriers, and high costs in the renewable energy sector are not addressed, Catalonia may not meet the goals for photovoltaic and wind energy set for 2030.

Conclusion

The installation sector in Catalonia is essential for the energy transition and decarbonization. However, it faces significant challenges that must be urgently addressed. The lack of qualified personnel, administrative barriers, and the slowdown of photovoltaic self-consumption are factors that could jeopardize the achievement of the goals set by PROENCAT 2050 and PNIEC 2023-2030. To overcome these obstacles, it is necessary to invest in training, simplify administrative processes, and create new fiscal incentives to accelerate the implementation of renewable energies. If these measures are implemented, Catalonia will be able to meet its energy transition goals and contribute significantly to the fight against climate change.