ARENA Launches Second Phase of Solar Sunshot Initiative to Boost Local Manufacturing

The Australian Renewable Energy Agency (ARENA) just launched the second funding round of its Solar Sunshot program. That new phase finally kicked off in September of 2025. Expected to be announced in March 2024, this program will reshape the nation’s solar manufacturing industry. To lead this transformation, it will invest A$1 billion in funding. The…

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ARENA Launches Second Phase of Solar Sunshot Initiative to Boost Local Manufacturing

The Australian Renewable Energy Agency (ARENA) just launched the second funding round of its Solar Sunshot program. That new phase finally kicked off in September of 2025. Expected to be announced in March 2024, this program will reshape the nation’s solar manufacturing industry. To lead this transformation, it will invest A$1 billion in funding. The first round of the initiative provided A$500 million to promote innovation in advanced manufacturing. This funding signals a monumental change in the direction of making solar technologies at home.

ARENA’s chief executive officer, Darren Miller, highlighted the program’s significance in reducing reliance on imported solar products. He said that the Solar Sunshot initiative is meant to strengthen Australia’s position in international clean energy supply chains. The focus on local manufacturing is not just about creating a more robust supply chain but supporting home-grown innovations from Australia’s innovators and entrepreneurs.

Job Creation and Economic Impact

The department’s Solar Sunshot initiative is going to build a new solar module factory. This highly anticipated project would generate about 200 construction-related jobs in the project’s development phase. Once in operation, the facility will add more than 100 permanent jobs. This job creation is part of a broader strategy to stimulate local economies and foster workforce development in the renewable energy sector.

That new facility, operated by Sunman Solar—the company behind the new facility—plans to manufacture flexible, lightweight glass solar photovoltaic (PV) modules. The plant will serve as a manufacturing foundry for original equipment manufacturers. This agreement is expected to boost Australia’s capacity to produce solar technologies.

“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. The Hunter Valley Solar Foundry project reflects these goals, bringing together advanced technology, local workforce development and long-term economic benefits for regional communities.” – Darren Miller

Focus on Innovation and Sustainability

True to its mission, Sunman plans to create a solar innovation centre on site. This innovation center will vigorously advance the commercialization of cutting-edge solar technologies. In doing so, it will build Australia’s competitive edge in the global renewable energy economy. Making those advanced, innovative practices part of the manufacturing process is paramount to moving the solar PV industry forward to be deployed at scale.

Miller told us that this is a key initiative to help the state achieve its long-term emissions reduction targets. He stated, “Deployment of solar PVs at scale is central to meeting our long-term emissions goals. Building our manufacturing capabilities will help ensure that our supply chains are resilient and Australian innovations are supported as we accelerate the rollout of solar PV.”

The Solar Sunshot initiative is a very exciting and concrete step in that direction, and we commend Australia on this initiative. It reinforces the bedrock of local manufacturing, and it drives innovation. This new approach not only delivers job-creating economic development but reinforces Colorado’s stronger commitment to renewable energy.