The Australian Government has officially launched it $1 billion Solar Sunshot program, aiming to revolutionise the country’s solar manufacturing industry.
The program seeks to bolster Australia’s position as a global leader in renewable energy technology and create thousands of jobs in the process.
Announced on August 31, by Prime Minister Anthony Albanese and Minister for Climate Change and Energy Chris Bowen, the program will be administered by the Australian Renewable Energy Agency (ARENA).
“I want a future made in Australia. And I want a future made in our regions. Places like the Hunter, Gladstone, Rockhampton and the Spencer Gulf,” Prime Minister Albanese said.
“Because Australia can do what other countries cannot. We have that combination of resources, skills, workers, space and sunlight to co-locate those links in the value chain.
“Solar Sunshot is about building on those strong foundations, building resilience into Australia’s renewable energy supply chains, and building a Future Made in Australia.”
The first phase of Solar Sunshot allocates $550 million to support the commercialisation of Australian solar photovoltaic (PV) innovations and scale up domestic manufacturing capabilities.
Despite Australia having the highest household solar adoption rate globally, with one in three homes equipped with solar panels, only 1 per cent of these panels are currently manufactured domestically.
The Solar Sunshot program aims to address this discrepancy by investing in local production and fostering a more resilient supply chain.
The program’s first round is divided into two parts:
Round 1A: $500 million to support solar panel manufacturing in Australia, focusing on modules, inputs to modules, and deployment systems.
Round 1B: $50 million for solar PV manufacturing studies, including feasibility and engineering assessments.
The International Energy Agency estimates that for each gigawatt of solar PV production, approximately 1300 manufacturing jobs are created.
This suggests that a reinvigorated domestic industry could generate thousands of employment opportunities across Australia.
Applications for funding are now open, with ARENA planning to host informational webinars for potential applicants in the coming weeks.
The agency expects to announce future funding rounds under the Solar Sunshot Program from mid-2025.
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