Australia’s solar manufacturing industry is set for a $150 million booster shot, with the second round of the federal government’s $1 billion Solar Sunshot program opening on Thursday.
Climate Change and Energy Minister Chris Bowen announced the $150 million in grants and production credits help to build supply chain resilience in a solar PV market dominated by China.
While one in three Australian households now have rooftop panels – the highest uptake in the world – less than one per cent of those modules are made locally.
“When it comes to powering our future, nothing beats our sun and our solar know-how. Round 1 is already proving that with the right backing, Australian companies can scale up solar manufacturing,” Mr Bowen said.
“Round 2 is the next step – targeting critical parts of the supply chain to build resilience, security and new jobs.”
The new funding will support domestic production of solar framing, junction boxes, solar glass and deployment technologies – parts of the supply chain that remain dominated by imports.
The government says this will create new opportunities in regional communities, strengthen supply chains and improve energy security.
The first $550 million in grants and production credits, launched September last year, mainly targeted commercial-scale manufacturing of solar photovoltaic modules, cells, framing and solar glass.
Adelaide-based Tindo Solar secured $34.5 million from the round to expand its South Australian operations, while Sydney firm 5B received $46 million to accelerate production of its Maverick pre-fabricated solar units.
The Australian Renewable Energy Agency (ARENA) continues to consider applications from Round 1, with demand from local firms outstripping available funds.
Officials say this reflects both the appetite to expand manufacturing and the strategic importance of solar PV as the backbone of Australia’s renewable energy buildout.
The Solar Sunshot program sits within the government’s broader Future Made in Australia agenda, which seeks to lock in economic benefits from the energy transition while creating secure jobs and strong local supply chains.
Ministers have argued the program is not only about emissions reduction but also about building industrial resilience and positioning Australian clean-tech in global markets.
Applications for Round 2 funding are now open through ARENA, with details available here.
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