The Australian Renewable Energy Agency (ARENA) has opened the second round of its AUD 1 billion Solar Sunshot program, dedicated to advancing solar PV manufacturing. This phase provides AUD 150 million ($98 million) to enhance critical supply chain segments.
Support will extend to essential solar components, including framing, solar glass, junction boxes, solar PV racking, tracking, and deployment technologies, along with inputs for solar PV modules. Funding will be provided as capital grants and/or production credit.
Eligible projects must involve new and/or additional manufacturing capacity and may use existing infrastructure. Expansion of existing facilities will not be considered for funding for what they are already producing, but ARENA may cover new production output.
Winning projects stand to win a funding amount of between AUD 2 million and AUD 20 million. It can be a combination of a capital grant and production credit.
Applications must be submitted for projects that involve commercial-scale manufacturing of solar PV technologies of at least Technology Readiness Level (TRL) 8 and Commercial Readiness Index (CRI) 3 at the time manufacturing commences.
Launched on September 4, 2025, Round 2 will open for submissions on September 23, 2025. The last date to send in applications is August 31, 2026. Details are available on ARENA’s website.
The Funding Round 2 will not support the manufacture of solar PV cells and modules, ingots and wafers, polysilicon, activities related to ingots, wafers, or polysilicon, pilot-scale projects, solar PV testing facilities, and recycling or end-of-life activities.
Solar Sunshot is the federal government’s key policy instrument to accelerate domestic solar innovation and build industrial resilience in this space.
Round 1 of the program is further subdivided into 1A and 1B. Round 1A dedicated up to AUD 500 million to support solar manufacturing, while Round 1B, with up to AUD 50 million, is seeking feasibility and engineering study projects to fund until November 2026.
Some of the winners announced so far are 5B, Tindo Solar, and 3 companies to carry out feasibility studies into local polysilicon production (see Australia Injects AUD 45.5 Million Into Solar Manufacturing Expansion).
