The Australian Renewable Energy Agency (ARENA) has launched funding rounds to support Australian innovation in solar PV production and associated supply chains.
The $1 billion Solar Sunshot program was announced by the Albanian government in March this year; Part of its $22.7 billion Future Made in Australia package. This was followed by a consultation process by the Department of Climate Change, Energy, the Environment and Water (DCCEEW) with various stakeholders to inform the design of the program. Once this was done and dusted, two initial rounds of financing were opened over the weekend.
- Round 1A ($500 million): Support innovation in solar PV manufacturing with a focus on modules and their inputs (such as glass and frames) and deployment systems (e.g. innovative racking). Expressions of interest must be submitted by December 10, 2024, and complete applications must be submitted by April 30, 2025.
- Round 1B ($50 million): Funding solar PV manufacturing studies. Complete applications by November 2, 2025.
For these rounds, proposals will be evaluated on a case-by-case basis based on performance criteria. ARENA expects to launch one (or more) additional rounds of financing next year.
More about Solar Sunshot Round 1A
Round 1A includes commercial manufacturing of solar PV technologies with new and/or additional production capacity. It is limited to solar modules, cells and other module components, as well as PV assembly, tracking and deployment technologies. Projects with upstream activities related to ingots, wafers or polysilicon will not be supported under Round 1A.
Round 1A Goals:
- Supporting the development of an integrated solar PV supply chain in Australia that can meet the challenges.
- Support innovation and the use of advanced automation technologies in manufacturing and create new economic opportunities.
- Reduce manufacturing hurdles.
- Develop pathways to sustainable and competitive supply chains, taking into account the principles of community benefit1 and long-term economic, social and environmental sustainability.
Total ARENA financing (capital grant + production credits2) for a single project is expected to be between $10 million and $350 million. Applicants must not be headquartered in Australia but must have an Australian Business Number (ABN) and be an Australian legal entity incorporated under the Corporations Act 2001. Each project must take place primarily in Australia and co-funding commitments play a role in the application evaluation process.
Further details on eligibility/performance criteria and other information regarding Round 1A can be found here.
One local company that has already indicated it will make an effort is currently Australia’s only solar panel manufacturer. Tindo Solar produces modules made from imported cells and other components. Aside from its “Gigafactory” expansion efforts, which would benefit from funding, Tindo Solar recently reiterated its commitment to integrating Australian components into its solar panels.
More about Solar Sunshot Round 1B
Round 1B projects are either feasibility studies or technical studies to produce commercial-scale solar PV technologies. including polysilicon, ingot and wafer production, as well as broader solar innovation and automation.
Goals:
- Lead to the development and operation of sustainable and commercial production facilities.
- Removing hurdles in manufacturing.
- Support innovation and the use of advanced automation in line with achieving ARENA’s Solar 30-30-30 goal.
In Round 1B, capital grants will range from $1 million to $5 million and will represent no more than 50% of the study budget. The study must primarily take place in Australia and an applicant must be an ABN holder and an Australian registered company.
More information about Round 1B can be found here.
Is Solar Sunshot worth the effort and cost?
Given the massive scale of solar PV production elsewhere, particularly in China, some question whether embarking on Solar Sunshot is a waste of money. ARENA recognizes that we are behind the eight ball and expects it will take “some time” for Australian manufacturing to become competitive on a global scale.
ARENA says the initiative will also support elements of the supply chain where Australia can be most competitive, particularly given local access to abundant raw materials such as silicon in the form of quartz.
“We must build on our history of innovation and extend it to manufacturing across the solar supply chain,” said Darren Miller, CEO of ARENA. “The demand for solar power required to achieve our net zero and superpower renewable energy targets is immense and Australia has the opportunity to build resilience and unlock long-term economic opportunities.”
Footnotes
- Ensuring that public investment and private investment attract inflows benefits local workers and businesses. ↩
- Production credits: Grants paid per unit of eligible production output. These are short-term additional resources needed to be competitive with imports during expansion. to close the gap between the expected selling price and the production costs + a reasonable return on investment. ↩
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