The first AUD550 million ($372.2 million) of the Australian Federal Government’s Solar Sunshot program has been launched to support the development of the domestic solar manufacturing industry and help local businesses capture a greater share of global PV conquer the supply chain.
The Australian Renewable Energy Agency (ARENA) has opened the first phase of the AUD 1 billion Solar Sunshot program, aimed at driving innovation in PV manufacturing in Australia and creating a more resilient renewable supply chain energy.
ARENA Chief Executive Officer Darren Miller said the Solar Sunshot program provides manufacturing grants and subsidies to Australian businesses and aims to uncover and support innovation to drive scale and diversity in a crucial industry.
“Solar electricity will be the foundation for Australia’s future energy supply and key to our ambitions for a net zero and renewable energy superpower,” he said. “We must build on our history of innovation and extend this to manufacturing across the solar supply chain. The demand for solar energy needed to meet our net zero and renewable energy superpower targets is enormous and Australia has the opportunity to build resilience and unlock long-term economic opportunities.”
The first AUD550 million will support the commercialization of Australian PV innovations and scale-up production Australian solar energy panels.
This includes AUD 500 million in Round 1A to support solar panel manufacturing in Australia, with a focus on modules, module inputs including solar glass and framesand deployment systems such as racking. Round 1B will include AUD 50 million to fund solar panel manufacturing studies, including feasibility and technical studies.
Australian Federal Energy Minister Chris Bowen said the Solar Sunshot program will allow Australian technology, innovation, know-how and skills to compete with international players. He noted that only about 1% of solar panels installed in Australia are produced domestically.
“That’s why bringing solar energy production to our shores is so crucial to unlocking our future as a renewable energy superpower and securing the orbit of the future,” he said. “Diverse, safe and resilient supply chains, supported by more production on land in a larger part of the value chain are too important to our safety and success to leave hope. Now is the time to take advantage of some of the best solar and renewable energy expertise in the world.”
Heidi Lee, CEO of independent think tank Beyond Zero Emissions (BZE), said the Solar Sunshot initiative marks an important step towards building a robust and sustainable domestic solar industry, but claimed more needs to be done are done.
Lee said incentives for local content within government contracts and schemes are needed to provide demand security for Australian-made clean technology, and to cycle more of the benefits of the initiative into our communities.
“China makes the lion’s share of solar panels that end up on Australian roofs, and instead we can produce these parts and panels in regions such as the Hunterthe Latrobe Valley, Illawarra and Central Queensland,” she said. “These are all regions that BZE has proposed could host industrial and manufacturing hubs based on renewable energy. These clean industry hubs are the best investment locations for new production facilities with existing infrastructure, transport logistics and a skilled workforce.”
The International Energy Agency estimates that for every GW of solar PV production, there are 1,300 jobs in the industry.
Applications for the first round of funding are now being submitted, with ARENA saying proposals will be assessed on an individual basis against merit criteria. Applications for Round 1A must be submitted by April 30, 2025, while applications for Round 1B must close on November 12, 2025.
Future funding rounds under the Solar Sunshot program are expected to be announced from mid-2025.
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