Australia is launching its $1 billion push to turbocharge local solar manufacturing.

The Australian Renewable Energy Agency (ARENA) has opened the first phase of the $1 billion Solar Sunshot program. 

The program is intended to drive innovation within Australia’s solar photovoltaic (PV) manufacturing sector.

Solar Sunshot, originally announced in March, is a key element of the government’s strategy to become a global leader in renewable energy. 

Through the scheme, “solar electricity will be the foundation of Australia’s future energy supply and the key to our net zero and renewable energy superpower ambitions”, says ARENA's CEO, Darren Miller.

Currently, while Australia has the highest solar uptake globally, with one in three households equipped with solar panels, only a small fraction - approximately one per cent - of these panels are manufactured domestically. 

The Solar Sunshot program aims to change this by fostering local manufacturing capabilities, enhancing the country’s energy security, and creating jobs.

The first phase of the program will allocate $550 million through two funding rounds. 

Round 1A, with a budget of $500 million, focuses on supporting innovation in solar PV manufacturing, specifically targeting modules, inputs to modules, and deployment systems. 

Round 1B provides $50 million for solar PV manufacturing studies, including feasibility and engineering studies.

The broader goal of Solar Sunshot is to leverage Australia’s strong renewable energy potential, abundant raw materials, and history of research excellence to build a more resilient and diversified solar manufacturing industry. 

ARENA, in collaboration with the Department of Climate Change, Energy, the Environment and Water (DCCEEW), developed the program guidelines through consultation with industry stakeholders. 

Applications for funding are now open, and ARENA plans to run an information webinar in the coming weeks to guide potential applicants.

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