$150M boost to strengthen Australia’s solar manufacturing

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Image credit: pxl/stock.adobe.com

The Australian Government has announced a $150 million boost to expand solar manufacturing in Australia, opening Round 2 of its $1 billion Solar Sunshot program.

The initiative aims to strengthen domestic production across the solar supply chain, with new funding set to support the manufacturing of components such as framing, solar glass, junction boxes and deployment technologies. 

The government said the investment is designed to create jobs, build local capability, and ensure Australia remains a key player in the global renewable energy transition.

Minister for Climate Change and Energy Chris Bowen said the program is focused on turning Australia’s natural advantages into long-term industry opportunities. 

“When it comes to powering our future, nothing beats our sun and our solar know-how. That’s why Solar Sunshot is all about making more of the clean energy technology we need right here in Australia,” Bowen said.

Round 1 of the Solar Sunshot program is already supporting local pioneers including 5B and Tindo Solar, which are working to scale up production.

The Australian Renewable Energy Agency (ARENA) continues to assess applications under the first round, which was focused on solar PV module production.

Bowen said the second round builds on that progress by targeting critical areas of the supply chain. “Round 1 is already proving that with the right backing, Australian companies can scale up solar manufacturing. Round 2 is the next step – targeting critical parts of the supply chain to build resilience, security and new jobs,” he said.

The government said the initiative forms part of its Future Made in Australia strategy, which prioritises local supply chains, secure jobs and diverse workforces. 

Officials said the investment is intended not only to support regional communities but also to reinforce national energy security.

“Only the Albanese Government is investing in a Future Made in Australia – unlocking the jobs and industries of the future while delivering cheaper, cleaner and more reliable energy for Australian households and businesses,” Bowen said.

More information on Round 2 can be found here.