Announced in March 2024, the Solar Sunshot program aims to increase Australia's role in the global solar photovoltaic (PV) manufacturing supply chain. Despite Australia having the world's highest household solar adoption rate (one in three homes), only 1% of panels are manufactured locally. Managed by the Australian Renewable Energy Agency (ARENA), the program provides production subsidies and grants to support innovation across the solar manufacturing sector. The first phase, launched in August 2024, includes $500 million for Round 1A (focusing on modules, inputs to modules, and deployment systems) and $50 million for Round 1B (supporting feasibility and engineering studies).

A significant portion of the funding will transform the former Liddell coal-fired power station in the NSW Hunter Valley into a solar manufacturing hub. This initiative highlights the government's commitment to ensuring coal communities aren't left behind during the energy transition, with the Prime Minister noting the project aims to create hundreds of jobs—potentially more than existed when Liddell operated as a power station. The site will be developed through a partnership between AGL (the site owner) and solar startup SunDrive, leveraging Australia's existing power infrastructure and abundant raw materials needed for solar panel production.

Key points:

• $1 billion program to boost domestic solar manufacturing from the current 1% of panels

• Former Liddell Power Station to be transformed into a solar manufacturing hub

• Creates new job opportunities in coal communities transitioning to renewable energy

• Reduces solar panel costs by eliminating approximately 15% import expenses

• Supports Australia's position as a global leader in solar research and deployment

  
  

[1] https://arena.gov.au/news/solar-manufacturing-gets-a-sunshot/

[2] https://www.abc.net.au/news/2024-03-28/anthony-albanese-announces-solar-sunshot-manufacturing-program/103639924

[3] https://arena.gov.au/funding/solar-sunshot/ (the docx)

[4] https://arena.gov.au/assets/2024/08/Solar-Sunshot-Round-1A-Funding-Announcement.pdf

[5] https://minister.dcceew.gov.au/bowen/media-releases/joint-media-release-1-billion-solar-sunshot-program-takes