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/EUR 613 million) Solar Sunshot program. This major initiative is aimed at driving innovation in solar PV manufacturing and strengthening Australia’s renewable energy supply chain.
ARENA CEO Darren Miller said the Solar Sunshot program will provide production subsidies and grants to Australian businesses, fostering innovations that can enhance the scale and diversity of 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,” Miller said.
“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.”
$550 Million to Boost Australian Solar Panel Innovation
The first $550 million is allocated to advancing the commercialization of Australian PV innovations and expanding the domestic production of solar panels.
This initial funding includes $500 million in Round 1A dedicated to supporting solar panel manufacturing in Australia, with an emphasis on modules, components like solar glass and frames, and deployment systems such as racking.
An additional $50 million in Round 1B will fund studies related to solar panel manufacturing, including feasibility and engineering assessments.
Federal Energy Minister Chris Bowen said the program will enable Australian technology, innovation, and expertise to compete on a global scale, highlighting that only about 1% of solar panels currently 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 jobs of the future,” he said.
“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.”
Beyond Zero Emissions Praises Solar Sunshot Initiative
Heidi Lee, CEO of the independent think tank Beyond Zero Emissions (BZE), praised the Solar Sunshot initiative as a major step toward a strong, sustainable domestic solar industry, but emphasized that additional efforts are needed.
She suggested that local content incentives in government contracts and schemes are necessary to create demand certainty for Australian-made clean technology and keep more of the initiative’s benefits 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,” she said.
“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.”
