Australia Officially Opens Phase I Of Solar Sunshot Program

The Australian Renewable Energy Agency (ARENA) has opened phase I of its AUD 1 billion ($651 million) Solar Sunshot program that’s aimed to help Australia boost its domestic solar PV production and reduce its reliance on foreign supply chains. Funding is planned to be offered as production subsidies and grants.   

Phase I of the funding round is sub-divided into round 1A with a focus on supporting solar PV manufacturing innovation with a focus on modules, inputs to modules (e.g. solar glass and frames), and deployment systems (e.g. innovative solar racking). It expects to support mature, proven technologies, but the program is not exclusively focused on any particular solar PV technology. This round gets a funding of AUD 500 million.  

Round 1B will provide a funding of AUD 50 million for solar PV manufacturing studies, including feasibility and engineering studies.  

A single project can apply for up to AUD 350 million for round 1A support, and up to AUD 5 million for round 1B. Subject to a funding agreement being in place with ARENA, production-linked payments are expected to be available in FY 2024-25. 

Both the rounds are open to foreign-owned entities as well as local companies as long as they meet the eligibility criteria, provided their projects are located in Australia.   

Proposals will be assessed against merit criteria on an individual basis. Applications received will be assessed on a regular basis as driven by pipeline volume. A public information webinar is scheduled for September 10, 2024.  

Phase I was launched on August 31, 2024. The last date to submit expressions of interest (EOI) for round 1A is December 10, 2024, while full applications will be accepted till April 30, 2025. For round 1B, full applications are due by November 12, 2025. Details are available on ARENA’s website.  

“We need to build on our history of innovation and extend this into manufacturing across the solar supply chain. The demand for solar required to meet our net zero and renewable energy superpower goals is immense and Australia has the opportunity to build resilience and unlock long-term economic opportunity,” said ARENA CEO Darren Miller.  

Announced initially in March 2024, the program is touted as Australia’s own version of the US’ Inflation Reduction Act (IRA) and the European Union’s Net Zero Industry Act (NZIA). ARENA as the implementing agency held consultations with stakeholders in the ensuing month (see Australia Opens Consultation On Solar Sunshot Initiative). 

ARENA said it developed the program guidelines in collaboration with the Department of Climate Change, Energy, the Environment and Water (DCCEEW), the industry, and other key stakeholders.