Australia Launches Round 2 of $1 Billion Solar Sunshot Program

The Albanese Government has opened Round 2 of the $1 billion Solar Sunshot program, aimed at boosting domestic solar manufacturing and advancing Australia’s renewable energy transition.

Although one in three Australian households now have solar—the highest uptake globally—less than one percent of panels are currently manufactured in the country. The new funding round will provide $150 million to expand local manufacturing capacity across additional parts of the solar supply chain, including framing, solar glass, junction boxes, and deployment technologies.

The initiative is expected to create new opportunities for Australian jobs and industry while strengthening energy security and regional communities.

Round 1 of the program, already underway, is supporting homegrown companies such as 5B and Tindo Solar, which are scaling up production and demonstrating Australia’s technological capability. The Australian Renewable Energy Agency (ARENA) continues to assess applications under Round 1, which focused on solar PV modules.

Minister for Climate Change and Energy Chris Bowen said the program was central to the government’s “Future Made in Australia” vision.

“When it comes to powering our future, nothing beats our sun and our solar know-how. That’s why Solar Sunshot is all about making more of the clean energy technology we need right here in Australia,” Bowen said.

He added that Round 2 will target critical parts of the supply chain to build resilience, security, and jobs. “Only the Albanese Government is investing in a Future Made in Australia—unlocking the jobs and industries of the future while delivering cheaper, cleaner, and more reliable energy for Australian households and businesses.”