ARENA funding powers return of large-scale solar module manufacturing

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Stock image. Image credit: pxl/stock.adobe.com

Manufacturing is set to take centre stage in Australia’s clean-energy ambitions, with the Australian Renewable Energy Agency (ARENA) announcing up to $151 million in conditional funding to establish a new solar module manufacturing facility in the Hunter Valley.

In a news release, ARENA said the investment, delivered under the Australian Government’s $1 billion Solar Sunshot Program, will support the Hunter Valley Solar Foundry project led by Sunman Group, founded by solar pioneer and UNSW alumnus Dr Zhengrong Shi.

ARENA CEO Darren Miller said the project reflects Solar Sunshot’s mission to lift domestic manufacturing capability and strengthen Australia’s role in global clean-energy supply chains. 

“Deployment of solar photovoltaics at scale is central to meeting our long-term emissions goals. Building our manufacturing capabilities will help ensure that our supply chains are resilient and Australian innovations are supported as we accelerate the rollout of solar PV,” Miller said.

He added that the project demonstrates how Solar Sunshot aims to “expand manufacturing capacity, strengthen supply-chain resilience and grow local jobs and skills,” noting that the proposal brings together advanced technology, local workforce development and long-term regional economic benefits.

The planned 500 MW per annum facility will produce a range of solar PV modules for domestic and international markets, including Sunman’s lightweight eArc modules, which use durable polymers instead of traditional glass. 

The project also proposes glass module production, a solar innovation hub and a manufacturing foundry model that could provide capacity to original equipment manufacturers.

Dr Shi said he was proud to return large-scale solar manufacturing to Australia. “Once established, the Hunter Valley Solar Foundry will be the largest manufacturer of solar photovoltaic modules in Australia, and the only one in NSW, delivering world-leading products to residential, commercial and utility customers around the country,” he said.

“As a proud Australian and a solar expert trained at the University of NSW, it has been my long-held ambition to establish solar module manufacturing in Australia, and it is my hope that over time the Foundry supports the foundation of a vertically-integrated solar supply chain in Australia.”

ARENA said construction of the project is expected to create up to 200 jobs, with around 100 ongoing roles once operational. 

The proposal includes an advanced manufacturing training program delivered with an accredited partner, alongside a First Nations recruitment strategy and a scholarship initiative supporting students in renewable-energy fields.

The agency noted that funding remains conditional pending the execution of a formal funding agreement.