Sunshot: Initial Australian PV module bids due August
The Albanese government’s $1 billion Solar Sunshot program is gearing up for action as early as August, with plans to initiate a tender for module manufacturing projects, as outlined in a consultation paper aimed at jumpstarting the solar supply chain in Australia.
Australian Renewable Energy Agency (Arena), in collaboration with the Department of Climate Change, Energy, the Environment and Water (DCCEEW), is seeking input on a strategy that involves targeted funding rounds and production-linked payments to support various segments of the solar supply chain, starting with PV module manufacturing.
Focus on Funding Rounds and Production
The consultation paper proposes a series of funding rounds to solicit specific projects that bolster different parts of the solar supply chain. The initial focus is on PV module manufacturing, with Round 1 scheduled for an early August launch. Arena aims to finalise Round 1 funding decisions by the end of December 2024, pending factors such as market readiness and the programme’s final design.
While the emphasis on panel production is likely to spark debate, Arena CEO Darren Miller explained that the Solar Sunshot programme is not solely about manufacturing panels. However, he acknowledged that panel production is the most straightforward initial step. Miller highlighted that the ultimate goal is to address the supply chain challenge by assembling advanced manufactured components into modules for sale in Australia.
Potential Funding Recipients
Several companies are poised to compete for funding in the first round, including Tindo Solar, Australia’s sole PV module manufacturer, which plans to establish a “gigafactory” capable of producing up to 1.9 million panels annually by mid-2025, with adequate government backing.
Another contender is Sydney-based SunDrive, a UNSW spin-off supported by prominent investors like Mike Cannon-Brookes. SunDrive is developing technology that utilises copper for PV cell metallisation, rather than silver, and aims to build a factory focusing on rooftop solar module production.
The Solar Sunshot programme is expected to primarily offer production-linked payments as financial support, with the possibility of using some funding for capital grants or other concessional forms of support. While feasibility studies and front-end engineering design work may receive backing, they are not the primary focus of the initiative, according to Arena.
Collaborative Approach for Industry Growth
Arena emphasised the importance of collaboration between the government and the private sector in building a solar manufacturing industry in Australia. The consultation period runs until May 31, with written submissions accepted through online forms on the Sunshot webpage. Additionally, two consultation webinars will be held to gather feedback and insights.
For further details, including the consultation paper, webinar schedules, and submission portal, visit the official Solar Sunshot webpage at https://arena.gov.au/funding/solar-sunshot/.
