Australia Opens Consultation On Solar Sunshot Initiative

• ARENA has opened a consultation to help it design the Solar Sunshot program structure 
• The feedback will enable it to prioritize support for specific parts of the supply chain 
• It targets to launch round 1 of the tender in August 2024 primarily to support domestic solar module manufacturing 

The Australian Renewable Energy Agency (ARENA) has invited stakeholder opinion on the design of Australia's AUD 1 billion ($651 million) Solar Sunshot initiative, announced recently. The country aims to open round 1 of the production-linked payment scheme in August 2024. 

Solar Sunshot is Australia's dedicated scheme to financially support the development of the country's domestic solar supply chain to ensure its energy sovereignty (see Australia Announces AUD 1 Billion For Solar Program). 

This supply chain includes the production of polysilicon from silica, the production of ingots and wafers, solar cells and modules. The support will also expand to local production of related components like module frames, solar glass, mounting structures, silver pastes, inverters and other deployment technologies. 

ARENA, along with the Department of Climate Change, Energy, the Environment and Water (DCCEEW), has proposed a structure to deliver the program through a series of funding rounds, supporting targeted stages of the supply chain. 

It proposes production-linked payments as the primary form of financial support. The agency will also assess capital grant funding or other forms of concessional support to complement the program. 

ARENA will aim to understand which elements of the supply chain should be prioritized for support, the market readiness across different stages of the supply chain, timelines to deliver the production capacity and the like. 

It expects the consultation to help determine the best approach to deliver the package. 

"There is a credible pathway for building a solar manufacturing industry in Australia. A collaborative and committed approach from government and the private sector gives us the best chance at tackling this challenge," said ARENA CEO Darren Miller. 

ARENA aims to support module manufacturing under round 1, followed by various other stages of the supply chain under round 2. 

The consultation opened on April 23, 2024, and will admit feedback till May 31, 2024. The details are available on ARENA's website.