Australia Boosts Domestic Solar Manufacturing with $1 Billion Solar Sunshot Program

Australia is making significant strides toward boosting its renewable energy manufacturing sector with the launch of the Albanese Government’s $1 billion Solar Sunshot program. Although Australia has long been a global leader in solar energy innovation, with one in three households adopting solar technology—the highest rate in the world—only 1% of those solar panels are domestically produced. This new initiative aims to strengthen Australia’s solar capabilities, support local jobs, and enhance the resilience of its supply chains.

The Solar Sunshot program, managed by the Australian Renewable Energy Agency (ARENA), is set to kick off with an initial $550 million investment. This funding will focus on the commercialization and expansion of Australian solar photovoltaic (PV) innovations. Specifically, $500 million will be dedicated to advancing solar panel manufacturing within Australia, targeting modules, module components, and deployment systems, while $50 million will be allocated to feasibility and engineering studies for solar PV manufacturing.

The need for a robust domestic solar manufacturing industry is underscored by the Treasury’s National Interest Framework, which highlights the risks associated with concentrated supply chains for critical energy technologies. By fostering local manufacturing, the Solar Sunshot program aims to secure Australia’s energy future, create thousands of jobs, and encourage investment in diverse communities and regions. Through this initiative, the government is partnering with Australian businesses, start-ups, and international investors to build a more resilient and sustainable energy landscape. Speaking on this, Chris Bowen said, “When it comes to powering Australia’s future nothing will beat our sun and our solar knowhow. That’s why bringing solar manufacturing to our shores is so critical for unlocking our future as a renewable energy superpower and securing the job of the future.Diverse, secure and resilient supply chains – supported by more onshore manufacturing across more of the value chain – are too important to our security and success to leave to hope.”