ARENA initiates second funding round of Solar Sunshot initiative

The Australian Renewable Energy Agency (ARENA) has commenced the second funding phase of the A$1bn ($652m) Solar Sunshot initiative, aimed at strengthening the solar photovoltaic (PV) manufacturing landscape in the country.

This second round allocates A$150m to support essential components of the solar PV supply chain, which includes framing, solar glass, junction boxes, and deployment technologies.

Round 1A has concluded and provided up to A$500m for module manufacturing.

Round 1B, meanwhile, which offers up to A$50m for feasibility and engineering studies, has been extended until November 2026.

Initial funding rounds have benefited several Australian companies, including A$46m allocated to 5B for the expansion of its Maverick solar deployment system, A$34.5m to Tindo Solar for increasing domestic solar PV production, and A$11m for three feasibility studies focused on upstream solar manufacturing.

ARENA noted that the Solar Sunshot initiative is crucial for Australia to leverage its natural resources effectively throughout the entire value chain, from mineral extraction to module production.

The initiative aligns with the national government’s ‘Future Made in Australia’ strategy, promoting the domestic solar manufacturing industry.

The aim is to establish strong supply chains that contribute to the growth of the green energy sectors.

Submissions for Round 2 will be accepted from 23 September 2025.

ARENA CEO Darren Miller said: “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.”