Australia loves solar. One in three homes now sports panels. But here’s the kicker: fewer than one per cent of those panels were made here. Round 2 of the federal Solar Sunshot program is the first serious push to change that, with $150 million aimed squarely at turning Aussie ideas and capability into kit we actually build at home.
What Round 2 is funding
Round 2 widens the focus beyond panels themselves to the building blocks and hardware that make large-scale deployment cheaper and faster. Funding is directed at commercial-scale manufacturing of:
- framing
- solar glass
- junction boxes
- racking, tracking and other deployment technologies
ARENA has set aside up to $150 million for this round, delivered as capital grants and/or production credits (payments tied to the volume you actually make). The goal: help local firms scale, automate, and compete in the parts of the supply chain where Australia can be strongest.
Why this matters (and why government is involved)
Sunshot isn’t about recreating every step of a globally mature supply chain overnight. It targets areas where we can carve out advantage—access to raw materials, low-cost clean electricity, and plenty of homegrown solar know-how—while building resilience so the nation isn’t hostage to offshore bottlenecks. Government support helps bridge early-stage risks in a market where scale elsewhere is enormous.
This sits within Future Made in Australia, with community benefit principles baked in: secure local jobs, skills and training, stronger regional supply chains, and genuine engagement with Traditional Owners and local communities. Applicants have to show how benefits flow locally—not just in spreadsheets, but on the ground.
Who can put their hand up
Round 2 seeks commercial-scale manufacturing in Australia (TRL ~8+, CRI ~3 when production starts). It excludes upstream silicon/ingots/wafers and pilot-scale R&D; the emphasis is on factories that can make real volumes of real components. Funding is flexible—either capital grants, production credits, or a mix—so proposals can match the realities of different manufacturing lines.
How it connects to Round 1
Round 1 backed local pioneers such as 5B and Tindo Solar to scale module production. Round 2 complements that by backing inputs and deployment gear—the nuts and bolts that feed those lines and help roll out solar faster across the country. Think of it as stitching together more of the value chain here at home.
What success looks like
- Lower installed costs through automation and smart design in racking, tracking and balance-of-plant.
- Tighter local supply chains, reducing exposure to international shocks.
- Skilled manufacturing jobs in regions, and clear training pipelines to fill them.
- Knowledge sharing so wins (and lessons) spread quickly across the sector.
Key facts at a glance
- Round 2 allocation: up to $150 million.
- Focus: inputs to modules and deployment technologies (not polysilicon/ingots/wafers).
- Program envelope: up to $1 billion across all Sunshot rounds.
- Launch date for Round 2: 4 September 2025.
- Why government support? To catalyse private investment and compete with scaled global supply chains.
The bigger picture
Sunshot won’t flip a switch and make Australia self-sufficient in solar overnight. But it’s a practical start: choose the right niches, back automation, link up with existing module makers, and focus on factories that can ship product at volume. Done well, it strengthens energy security, builds sovereign capability, and keeps Australia’s solar story anchored not just on rooftops—but on factory floors too.
More program details and application materials are available via ARENA’s Sunshot page.
Article adapted from: ARENA Solar Sunshot Round 2