The Australian Renewable Energy Agency (ARENA) announced the launch of the first phase of the 1 billion (USD 680 million/EUR 613 million) Solar Sunshot program designed to support the development of a solar module industry in Australia.
ARENA Launches $1 Billion Solar Sunshot Program
The Australian Renewable Energy Agency (ARENA) has launched the initial phase of its $1 billion (USD 680 million) Solar Sunshot program, designed to drive innovation in solar PV manufacturing in Australia and strengthen the renewable energy supply chain.
Darren Miller, CEO of ARENA stated that the Solar Sunshot program provides production subsidies and grants to Australian businesses aiming to uncover and support innovations that will enhance scale and diversity in this essential industry.
Solar panel manufacturing facility.
“Solar electricity will be the foundation of Australia’s future energy supply and the key to our net zero and renewable energy superpower ambitions. We need to build on our history of innovation and extend this into manufacturing across the solar supply chain. The demand for solar required to meet our net zero and renewable energy superpower goals is immense and Australia has the opportunity to build resilience and unlock long-term economic opportunity.” he said.
$550 Million to Boost Australian Solar Panel Innovation
The first $550 million will be allocated to advance the commercialization of Australian PV innovations and expand the production of solar panels domestically. This includes $500 million in Round 1A dedicated to supporting solar panel manufacturing in Australia with an emphasis on modules, module components such as solar glass and frames and deployment systems like racking.
Round 1B will allocate $50 million for funding studies related to solar panel manufacturing including feasibility and engineering assessments.
Federal Energy Minister Chris Bowen stated that the Solar Sunshot program will enable Australian technology, innovation, expertise and skills to compete on a global scale. He highlighted that currently, only about 1% of solar panels installed in Australia are produced domestically.
“That’s why bringing solar manufacturing to our shores is so critical for unlocking our future as a renewable energy superpower and securing the job of the future. Diverse, secure and resilient supply chains, supported by more onshore manufacturing across more of the value chain, are too important to our security and success to leave to hope. Now is the time to take advantage of some of the best solar resources and renewable energy expertise in the world.” he said.
Beyond Zero Emissions Praises Solar Sunshot Initiative
Heidi Lee, CEO of the independent think tank Beyond Zero Emissions (BZE) stated that the Solar Sunshot initiative represents a major advance in developing a strong and sustainable domestic solar industry but emphasized that additional efforts are needed.
Lee suggested that local content incentives in government contracts and schemes are necessary to ensure demand certainty for Australian-made clean technology and to keep more of the benefits of the initiative within local communities.
“China makes the lion’s share of the solar panels that go onto Australian rooftops, and we can instead manufacture these parts and panels in regions such as the Hunter, the Latrobe Valley, Illawarra and Central Queensland. These are all regions BZE has suggested can host renewables-powered industrial and manufacturing hubs. These clean industry hubs are the best investment locations for new manufacturing facilities with existing infrastructure, transport logistics and skilled workforces.” she said.