Australian Renewable Energy Agency (ARENA) announced up to $151 million in conditional funding to establish a 500 megawatt (MW) per annum solar module manufacturing facility in the Hunter Valley, New South Wales.
The funding will support the development of the Hunter Valley Solar Foundry, an initiative led by lightweight-solar pioneer Sunman Group, founded by solar technologist and University of New South Wales (UNSW) alumnus Dr Zhengrong Shi.
This investment under the Australian Government’s $1 billion Solar Sunshot Program will support the program’s mission to rebuild sovereign solar manufacturing capacity and reduce Australia’s reliance on imported technology as it accelerates toward 82 per cent renewable electricity by 2030.
“Deployment of solar photovoltaics at scale is central to meeting our long-term emissions goals,” said Darren Miller, Chief Executive Officer at ARENA.
“Building our manufacturing capabilities will help ensure our supply chains are resilient and Australian innovations are supported as we accelerate the rollout of solar PV.”
Miller shares that the Hunter Valley Solar Foundry reflects Solar Sunshot’s core objectives.
“The project brings together advanced technology, local workforce development and long-term economic benefits for regional communities. Solar Sunshot is about building on Australia’s world-leading solar research to expand manufacturing capacity, strengthen supply-chain resilience and grow local jobs and skills,” he said.
Manufacturing for domestic and global markets
The proposed 500 MW facility will manufacture a range of solar photovoltaic (PV) modules, including Sunman’s proprietary enhanced Architecture Ready Composite (eArc) modules. Replacing traditional glass with durable polymers, eArc modules are up to 70 per cent lighter, are faster to install and easier to transport. These attributes that have supported Sunman’s emergence as a global lightweight PV leader.
Alongside eArc production, the facility aims to manufacture glass modules, develop a solar innovation hub to progress new technologies, and operate as a solar manufacturing foundry offering contract production capacity to original equipment manufacturers. This model is designed to expand Australia’s module supply chain and stimulate growth across upstream and downstream manufacturing.
For Dr Shi, the project marks a symbolic homecoming. One of the world’s earliest solar industrialists, he began his research career in Australia before scaling up global manufacturing abroad.
“With Solar Sunshot backing, this facility brings world-leading solar expertise back to Australia,” Dr Shi said.
“Once established, the Hunter Valley Solar Foundry will be the largest manufacturer of solar photovoltaic modules in Australia, and the only one in NSW, delivering world-leading products to residential, commercial and utility customers.”
He added that the project aligns with his longstanding ambition for vertically integrated solar manufacturing in Australia.
“As a proud Australian and a solar expert trained at the University of NSW, it has been my long-held ambition to establish solar module manufacturing here. This is an important milestone in Australia’s energy transition.”
Regional jobs, skills and First Nations participation
Construction of the facility is expected to create up to 200 jobs, with around 100 ongoing roles once operational. The project includes a partnership with an accredited training provider to deliver advanced manufacturing training, ensuring a pipeline of workers skilled in next-generation solar production.
The Foundry also incorporates a First Nations recruitment strategy and a scholarship program supporting students pursuing qualifications in renewable-energy fields, helping ensure Solar Sunshot’s benefits reach across the Hunter and beyond.
The Hunter Valley Solar Foundry’s funding remains subject to conditions, including execution of a funding agreement.
Summary of recent investment
Launched in 2024 by ARENA, the Solar Sunshot program aims to unlock innovation, diversify supply chains and establish a competitive solar manufacturing ecosystem in Australia.
Under Solar Sunshot:
- Round 1A provided $500 million for module manufacturing and deployment systems (now closed)
- Round 1B provides $50 million for manufacturing feasibility and engineering studies (open)
- Round 2 provides $150 million to support production of inputs to PV modules and deployment innovation (open)
For more information about the Solar Sunshot, click here.