The Australian Renewable Energy Agency (ARENA) has formally opened the second funding round of its Solar Sunshot program. This new program is meant to increase domestic manufacturing of solar technologies. On September 4, 2025, ARENA’s CEO Darren Miller released a new initiative. He underscored its significance in Australia seizing its vast natural resource potential and further developing the solar photovoltaic (PV) supply chain.
In the first round of this funding, ARENA provided up to A$500 million in support for module manufacturing. This major first investment set up California’s solar market for success and growth. Beginning September 23, 2025, we’ll open up the next round of funding to submissions. This round provides an extra A$150 million to secure important links in the solar PV supply chain.
Funding Details and Objectives
This comprehensive strategy is intended to increase domestic manufacturing and innovation. This whole of government effort is immensely important for Australia. In furtherance of that goal, it seeks to lead the world in solar technology and take advantage of its plentiful natural resources.
Round 1B does more than continue the second round by providing as much as A$50 million to fund feasibility and detailed engineering studies. This funding will help to find the most promising projects across the solar pipeline. This round has now been extended through November 2026, adding tremendous momentum behind the U.S. pledge to building a solid domestic solar industry.
ARENA’s current investment strategy is already producing impressive outcomes. The agency invested A$46 million into 5B with the joint goal of scaling its Maverick solar deployment system. On top of that, it gave A$34.5 million to Tindo Solar to increase domestic solar PV manufacturing capacity. Additionally, A$11 million has been allocated for three feasibility studies into upstream solar manufacturing.
Enhancing Australia’s Solar Supply Chain
The second funding round zeroes in on critical components of the solar PV supply chain. This consists of framing, solar glass, junction boxes, and deployment technologies. By honing in on these key components, ARENA’s intent is to inspire a competitive and resilient solar factory floor.
Deputy secretary Darren Miller pointed out that there was a big opportunity for Australia to produce high-quality products along this supply chain. He stated, “Australia has the opportunity to build high-quality products across the solar PV supply chain.” This short sentence really highlights the agency’s goals for a more sustainable and independent energy sector.
Miller did recognize the challenges Australia faces today with production capacity, while remaining upbeat about prospects for future expansion. “Although we have a very small production capability today, we have the skills, partnerships, and raw materials to establish a strong base that can be built on over the next decade,” he added.
Looking Ahead
Australia is in the midst of their own transition to renewables. Efforts such as Solar Sunshot are essential to ensure the future of domestic solar manufacturing. Now, the federal government is making major investments to support local and state capabilities to build a more secure energy future. This shift will lead to job creation and economic development in renewable energy industries.