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This round aims to reduce the LCOE and improve efficiency across balance of plant (BOP). Image: ARENA.
The Australian Renewable Energy Agency (ARENA) has launched the second funding round of its AU$1 billion (US$650 million) Solar Sunshot programme, making AU$150 million available to support domestic solar manufacturing and supply chain projects.
The new funding round aims to strengthen Australia’s position in the global solar industry by supporting projects across the solar supply chain, from raw materials to finished products, with a focus on manufacturing capability and innovation.
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This round aims to reduce the levelised cost of energy (LCOE) and improve efficiency across balance of plant (BOP), including automation, hardware, components and system configurations.
This second round closely follows the conclusion of ARENA’s initial Solar Sunshot funding round, which saw AU$91.5 million awarded to Australian solar companies including 5B, Tindo Solar and three feasibility studies for upstream manufacturing.
Australia’s prime minister, Anthony Albanese, first announced the AU$1 billion Solar Sunshot programme in March 2024 as part of the government’s Future Made in Australia initiative.
The programme aims to establish Australia as a significant player in the global solar manufacturing landscape while creating jobs and economic opportunities nationwide.
Building on initial success
The second funding round builds on the momentum established through ARENA’s initial Solar Sunshot investments.
In May, PV Tech reported that 5B became the first recipient of the programme, securing up to AU$46 million to expand manufacturing capacity for its Maverick solar deployment system.
This was followed by Tindo Solar receiving AU$34.5 million in July to boost domestic production of solar PV modules. The Adelaide-based manufacturer plans to use the funding to increase its annual production capacity from 150MW to 350MW by 2026.
ARENA also allocated AU$11 million across three feasibility studies for upstream manufacturing projects, exploring opportunities in silicon refining, ingot and wafer production and solar glass manufacturing.
In July 2025, ARENA announced an additional AU$60 million funding round specifically for ultra-low-cost solar R&D projects. The aim is to reduce the installed cost of solar to 30 cents per watt.
Round 2 of the Solar Sunshot programme will open for submissions on 23 September 2025. Details on eligibility, funding mechanisms and timelines are available on the ARENA website.
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