​Why One-Size-Fits-All Remuneration Is Failing Renewable Energy Companies in 2025

Heading up TGRC’s market research function I regularly work with renewable energy companies on salary surveys, employer value propositions and talent strategy. A spectator sees more of the game, and when I look at the collective position of these firms, I can see some recurring patterns.

The first is that over the last two years I have seen a steady decline in workers picking basic pay as their most important component of employment package. From an approximate 70% of workers feeling this in 2023 we now regularly see around 55% of workers saying it is the most important factor. So we know base pay matters, but it is not looming as large in the minds of existing staff and new hires.

This graph, titled 'Changing Dynamics in Pay Structure: 2020-2025', illustrates a pivotal shift in the renewable energy sector’s approach to remuneration over the past five years. As the graph clearly shows, there has been a significant decrease in the percentage of workers who prioritize base pay as the most important component of their employment package—from 75% in 2020 down to just 55% in 2025. Concurrently, we observe a notable increase in the percentage of employees receiving pay rises, escalating from 30% in 2020 to 48% in 2025. This trend not only reflects the evolving priorities of the workforce but also underscores the industry’s response to the fierce competition for talent, as companies increasingly recognize the need to offer more dynamic and attractive remuneration packages to retain and attract skilled professionals.

The second is really the theme of this article (which mainly focuses on the US but includes the UK and EU for benchmarking), that pay has become too standard in organisations, whilst the roles they have are not homogenous. In trying to create one unified pay structure many firms alienate the different tribes that make up their team – business developers have different needs from engineers and vice versa.

The third is a general observation but there seems little desire to innovate on pay, which is surprising given how the sector is so good at innovating in everything else.

Where Are We Now?

Renewable energy remuneration patterns have undergone a remarkable transformation in the last half-decade. Recent data shows 48% of professionals receiving pay rises in 2025, up significantly from 35% five years ago. This shift reminds me of the rapid acceleration we've seen in other aspects of the green transition – sometimes slow to start but eventually gathering impressive momentum (its hard to remember that Energy Storage was once a niche part of our sector but is now viewed as the most decisive technology for the green transition in many surveys).

The numbers paint a clear picture of an industry in flux. Despite wallets getting fatter, renewable energy faces what I'd call a talent marathon rather than a sprint. By 2030, the global renewables sector will need to recruit an additional 1.1 million blue-collar workers alongside 1.3 million white-collar professionals. This isn't just a future concern – a third of clean energy workers report being headhunted six or more times in the past year. The war for talent is already well underway.

This competitive landscape exposes what might be the industry's Achilles heel: standardized compensation packages simply don't work anymore. When 40% of clean energy workers are open to moving to different energy sectors entirely, and US companies paying approximately 40% more than their European counterparts, the old rulebook needs rewriting.

How did we get here? When speaking to professionals in the sector there is an acknowledgement that the industry has been too reactive. Covid injected artificial pay rises into workers compensation as they were temporarily freed from the costs of working in an office, then the Great Resignation made retention hypersensitive to basic pay. The problem was that these experiences turned the tide on a decade of progressive tailored pay and reward strategies for companies in the sector. Now companies are potentially undermining their hiring strategy by now introducing more relevance and nuance into their salary offerings.

Much like the climate crisis itself, the talent challenge won't be solved with yesterday's thinking. The renewables sector finds itself at a critical junction – continue with one-size-fits-all approaches and risk losing the talent race, or develop nuanced strategies that recognize the diversity of its workforce. In this article, I'll explore why traditional remuneration strategies are failing renewable energy companies and examine the more tailored approaches that could help attract and retain the diverse talent needed to power the sector through 2025 and beyond.

The Diverse Workforce Powering Clean Energy Trends

The renewable energy sector resembles a complex ecosystem rather than a uniform landscape. Today's green energy workforce spans an extraordinary range of talents – from hands-on technicians to data-crunching analysts – each requiring distinct compensation approaches that standard packages simply can't address.

Technical specialists vs. administrative roles

The technical complexity of modern renewable systems doesn't just demand specialized knowledge – it commands premium compensation. I've observed how engineers developing cutting-edge solar panels, wind turbines, and storage systems possess highly marketable skills that transfer readily across sectors, making them particularly flight-prone without the right incentives.

The backbone of renewable energy businesses consists of various professional engineering, building, operations, and maintenance personnel. These technical talents often have fundamentally different compensation expectations compared to their administrative colleagues. While technical specialists might prioritize equity and growth opportunities, administrative staff frequently value stability and comprehensive benefits packages.

Partnerships between industry players and academic institutions help bridge the theoretical-practical knowledge gap, but they also create another compensation challenge. How do you design remuneration packages that effectively convert promising graduates into long-term employees? It's a question that standard approaches rarely address adequately.

Field workers vs. office-based professionals

Renewable energy consultants operate in dramatically different environments – from comfortable office settings to remote field locations where the elements are your constant companion. These divergent working conditions demand equally distinct compensation approaches.

Field workers face unique challenges that one-size-fits-all remuneration packages frequently miss.  This challenge was particularly pronounced for firms that employ travel-based crews, since this model requires employees to be away from home for prolonged periods. Not all roles carry the same stresses, these workers experience distinct stresses that require special consideration, but it is seldom reflected in their pay packages.

Meanwhile, office-based professionals focused primarily on logistics, data analysis, and client meetings typically need different incentive structures than their field-based colleagues. Their contribution, while less visible, requires its own recognition framework.

Experience levels and career stages

The solar workforce skews notably younger than the overall U.S. workforce, with 31% of workers under 30 compared to 22% nationally. This generational diversity isn't just a demographic footnote – it represents fundamentally different life stages and priorities that demand varied compensation approaches.

Career progression within renewable energy adds another layer of complexity. The Clean Energy Career Pathways Catalog outlines over 300 job descriptions showing potential advancement routes within the industry, each requiring appropriate compensation scaling. It's rather like a complex transit map – multiple routes requiring different tickets.

Unfortunately, representation gaps persist despite the sector's progressive image. The solar industry particularly underrepresents women and Black workers. Furthermore, leadership positions remain predominantly white (88%) and male (80%), suggesting potential biases in promotion and compensation practices that must be addressed head-on.

With 8 million jobs in renewable energy today and millions more needed in manufacturing and deployment, the sector's success ultimately depends on recognizing this workforce diversity through appropriate remuneration strategies. Companies that tailor compensation packages to their diverse workforce won't just be doing the right thing – they'll gain decisive advantages in the increasingly heated battle for talent.

Why Standard Pay Models Are Failing in 2025

The standardized remuneration playbook for renewable energy is looking increasingly dog-eared as we progress through 2025. What worked five years ago feels as outdated as traditional energy thinking in a world demanding carbon neutrality. The industry's growing sophistication has exposed fundamental cracks in conventional pay models that simply cannot address the nuanced needs of today's clean energy workforce.

Regional salary disparities in renewable markets

Massive regional discrepancies now characterize the renewable energy job market. It's a tale of two workforces – professionals in some regions earn four times more than colleagues performing identical roles elsewhere, creating unsustainable talent migration patterns. American renewable energy positions command approximately 40% higher salaries than their European equivalents, effectively turning compensation into a battleground that spans continents.

This challenge runs deeper than basic salary figures. High-income economies can generally support widespread adoption of renewable technologies, while middle-income countries grapple with severe income disparities that ultimately erode renewable energy's contribution to reducing energy intensity. These economic realities force companies to completely reimagine their regional compensation strategies, much like adapting a renewable project to vastly different terrains.

Skill scarcity driving compensation competition

The talent drought has reached what I'd consider crisis levels, with 81% of renewables employers struggling to hire workers, compared to 71% in the wider engineering construction industry. This shortage stems primarily from two factors working in tandem – a general lack of qualifications alongside companies' inability to meet escalating salary expectations.

The wind industry stands on particularly shaky ground, facing serious skills shortfalls beginning this year. It takes more than a decade to develop a competent project leader for offshore wind farms – you can't simply pluck these professionals from other industries. This creates a talent pipeline challenge that conventional pay models are woefully unprepared to address.

Meanwhile, clean energy professionals report receiving up to six headhunting calls annually, painting a clear picture of the fierce competition for experienced workers.

The generational expectations gap

Workforce demographics have fundamentally shifted, rather like tectonic plates creating an entirely new landscape. GenZ and millennials represent the generations most concerned with climate change, yet their compensation priorities differ significantly from previous generations.

A striking 88% of these younger workers insist their job should align with their values. Furthermore, 93% believe their generation will be remembered for making a positive global difference. Standard compensation packages that focus solely on salary miss these motivational factors entirely – it's like trying to power an electric vehicle with diesel.

Most companies now acknowledge that multi-generational workforces are critical to long-term success, with 80% of global C-suite leaders citing them as "key to growth". Nevertheless, traditional pay structures remain stubbornly rigid, failing to accommodate these diverse generational expectations – a significant blind spot that risks widening rather than narrowing in coming years.

Role-Specific Remuneration Strategies That Work

Forward-thinking renewable energy companies are abandoning the generic compensation playbook in favour of role-tailored approaches that recognize their workforce's diverse needs. With 73% of renewable energy workers anticipating a raise this year, strategic remuneration planning has become as essential as robust project financing.

Engineering and technical talent packages

Engineering roles command distinct salary bands that vary remarkably by specialization and geography: £38,000–£60,000 in the UK, €45,000–€70,000 in Europe, and $50,000–$80,000 in the US. Technical specialists typically value long-term wealth creation over immediate gratification, with 68% preferring roles offering equity participation rather than higher base salaries without ownership stakes.

The skills drought across emerging technologies—particularly in cell manufacturing, battery storage, and grid integration—demands precision-targeted compensation strategies. It's rather like matching the right renewable solution to specific terrain – what works in one context fails dismally in another. Companies offering substantial professional development investments alongside competitive base pay are steadily pulling ahead in the talent marathon.

Executive compensation frameworks

Executive remuneration has experienced a fundamental shift, with climate-linked incentives becoming the new normal. Almost 45% of S&P 500 companies now incorporate climate metrics in their executive incentive plans, up from just 14% three years ago. This trend reflects growing investor expectations that management be held accountable for climate transition strategy delivery.

Effective executive packages typically feature three complementary components: competitive base salaries for immediate needs, equity participation for long-term wealth creation, and project milestone incentives for performance motivation. Four-year vesting schedules have proven particularly effective at nurturing the long-term commitment needed to drive the green energy transition. This balanced approach reminds me of a well-designed energy system – multiple sources working together to ensure reliable output.

Field and maintenance staff incentives

For maintenance teams, traditional bonus structures often create artificial ceilings that frustrate high performers. It's a bit like limiting a wind turbine's output on a perfectly windy day – counterproductive and demoralizing. Leading companies are implementing performance-based equity and project completion bonuses to better align rewards with contribution. These incentives typically include downside protection options and growth-aligned components that recognize field staff's direct impact on project success.

Project development team structures

Project Managers, responsible for identifying business development opportunities and managing the entire project lifecycle, earn between £55,000–£90,000 in the UK (€53,000–€94,000 in Europe; $60,000–$120,000 in US). Their remuneration packages must delicately balance immediate compensation with long-term incentives tied to project success.

Many organizations now offer equity stakes in specific renewable projects rather than just company-wide options. This approach creates genuine partnerships between renewable firms and their teams, moving beyond conventional employer-employee relationships toward shared ownership models. The parallel with community energy projects isn't coincidental – both recognize that people care more deeply about initiatives where they have a genuine stake in the outcome.

Beyond Salary: Comprehensive Reward Systems

The battle for renewable energy talent isn't won on salary alone – in fact, innovative reward structures beyond base compensation have become the secret weapons in attracting and retaining top professionals. Much like diversified energy portfolios outperform single-source strategies, comprehensive reward packages addressing varied workforce needs consistently demonstrate higher retention rates and employee satisfaction.

Equity options in renewable projects

Tax equity investments offer renewable energy professionals substantial value beyond traditional compensation. These structures typically deliver around 80% of returns through tax credits and benefits, with the remainder flowing from project cash flows. Unlike the full 25-30 year project lifecycle, investment horizons generally span a more manageable 6-10 years, creating attractive wealth-building opportunities without decades-long commitments. For companies, these arrangements foster genuine partnerships with employees, who receive equity stakes while maintaining priority for tax equity investors in earnings distributions – rather like the complementary relationship between baseload and peaking power plants.

Relocation and remote work incentives

Various regions now vie for clean energy talent through compelling relocation packages. Programs like Ascend West Virginia provide up to $12,000 for relocating workers, while others offer benefits ranging from $2,000 to $10,000. It's a bit like creating mini-energy hubs – these initiatives aim to boost local economies while providing renewable energy workers with affordable housing options and lifestyle benefits. The demand is certainly there – 81% of energy workers actively seek remote opportunities specifically for improved work-life balance, making flexible location policies a powerful recruitment tool in today's market.

Professional development investments

I've always believed that training programs represent essential investments rather than optional perks, and the data bears this out. Currently, only 29% of employees express satisfaction with development opportunities in their organizations, while an overwhelming 86% of Millennials cite training as a primary retention factor. The Department of Energy recognizes this gap and actively supports employer investment in high-quality workforce infrastructure through financial assistance programs, creating pathways for skills development across various energy occupations. This reminds me of feed-in tariffs – initial support that creates sustainable, long-term value.

Work-life balance considerations

Maintaining healthy work-life balance proves crucial for talent retention in renewable energy – rather like maintaining proper maintenance schedules for wind turbines. Flexible arrangements and wellness programs significantly increase employee satisfaction and organizational commitment. The industry intrinsically offers fulfillment through contributing to environmental sustainability, providing professionals pride in their work's positive impact. Nevertheless, misconceptions about excessive demands in the sector must be addressed through deliberate policies that empower employees to manage their schedules effectively.

Conclusion

The verdict is clear – standard remuneration packages have become as outdated for renewable energy companies as coal-fired power stations in a net-zero economy. Market data tells this story unequivocally - with talent receiving multiple headhunting calls annually and companies desperately scrambling to fill critical positions across technical, field, and executive roles.

Success in 2025's renewable energy landscape demands more than tweaking existing compensation models; it requires a fundamental reimagining of how we value and reward talent. Rather than applying uniform policies, companies must recognize the diverse ecosystem their workforce represents. Technical specialists seek meaningful equity participation, field workers value performance-based incentives tied to project success, and younger generations prioritize genuine alignment with their environmental values – not merely lip service to green principles.

The evidence speaks volumes - organizations offering role-specific packages, substantive professional development opportunities, and flexible work arrangements consistently outperform those clinging to traditional models. It's rather like the early days of solar adoption – those who moved quickly secured advantages that latecomers found difficult to overcome. These forward-thinking companies attract superior talent, maintain higher retention rates, and build more innovative teams capable of tackling our climate challenges.

Companies that fail to adapt their remuneration strategies risk falling behind as the sector races to fill 2.4 million new positions by 2030. Smart leaders understand that investing in tailored compensation packages today creates lasting competitive advantages through stronger teams, better project outcomes, and accelerated growth. This isn't merely about paying more – it's about paying smarter.

The renewable energy sector stands at what I believe is a watershed moment – not unlike the tipping points scientists describe in climate systems. Those who embrace personalized remuneration approaches will lead the industry's transformation and accelerate our transition to clean energy, while those clinging to outdated models may find themselves increasingly unable to compete for scarce talent. In the words often attributed to Benjamin Franklin, "When you're finished changing, you're finished" – a principle that applies as much to compensation strategy as it does to energy systems themselves.