Australia will inject a fresh $150 million into domestic solar manufacturing.
The Australian Renewable Energy Agency (ARENA) is opening Round 2 of its $1 billion Solar Sunshot program.
The new funding round targets critical but underdeveloped segments of the solar photovoltaic (PV) supply chain, including framing, solar glass, junction boxes and deployment technologies.
Applications open on September 23.
ARENA CEO Darren Miller said the program was a pivotal opportunity to establish a sovereign solar manufacturing capability.
“Australia has the opportunity to build high-quality products across the solar PV supply chain. Although we have a very small production capability today, we have the skills, partnerships and raw materials to establish a strong base that can be built on over the next decade,” Miller said.
Round 2 builds on Round 1A, which allocated up to $500 million to module manufacturing and is now closed, and Round 1B, which makes up to $50 million available for feasibility and engineering studies through to November 2026.
Among the first recipients were Sydney-headquartered 5B, awarded up to $46 million to expand production of its prefabricated Maverick solar array system; Adelaide’s Tindo Solar, granted $34.5 million to boost domestic module manufacturing; and three early-stage upstream studies backed with a combined $11 million.
“Round 1 is already proving that with the right backing, Australian companies can scale up solar manufacturing,” Minister for Climate Change and Energy Chris Bowen said.
“Round 2 is the next step – targeting critical parts of the supply chain to build resilience, security and new jobs.”
Australia has the world’s highest rate of household solar adoption, but less than one per cent of installed panels are produced domestically.
The Solar Sunshot program is designed to close that gap by fostering a resilient and diverse local supply chain, while positioning Australia as a competitive player in the global PV market.
Further details on eligibility, timelines and assessment criteria for Round 2 are available on the ARENA website.