Solar Sunshot

Key Requirements

The program aims to back innovative manufacturing facilities throughout Australia’s solar PV supply chain, covering polysilicon production, ingot and wafer manufacturing, solar PV cell production, and solar module assembly. Additionally, it may support related elements like solar glass, module frames, deployment tech, and other manufacturing innovations crucial for solar deployment.

The objectives of the program are to commercialise Australian solar PV innovations to expand and diversify the economy and strengthen the long-term resilience of Australian solar PV supply chains.

Round 1A

$500 million has been allocated by ARENA for this round aimed at solar PV manufacturing innovation. This round focuses on modules, module inputs (such as solar glass and frames), and deployment systems (including innovative solar racking). Additionally the program is aimed at supporting the development of a resilient and integrated solar PV supply chain, promoting innovation and the use of advanced automation in solar PV manufacturing to create new economic opportunities, reducing barriers to solar PV manufacturing, and developing pathways that enable sustainable and competitive solar PV supply chains while considering long-term economic, social, and environmental sustainability.

Funding Requests are expected to fall within $50 million for a capital grant, covering no more than 50% of the project development and construction budget, and up to $350 million in total value for production credits, which will account for the cost difference between solar technologies produced in Australia and comparable commercially available technologies. The total ARENA funding for a single project is anticipated to range from $10 million to $350 million. ARENA may accept funding requests outside of this range at its discretion.

Expressions of interest must be submitted by December 10, 2024, with all application submissions due by April 30, 2025.

Funding under Round 1A will be available as capital grants and/or production-linked grant payments.

Round 1B

$50 million has been allocated by ARENA for this round aimed at Solar PV manufacturing studies which includes feasibility studies and Front-End Engineering Design (FEED), including facilitating the development and operation of sustainable, commercially viable solar PV manufacturing facilities, promoting innovation and the implementation of advanced automation in solar PV manufacturing, and lowering barriers to solar PV manufacturing.

Capital grants will be between $1 million and $5 million, covering up to 50% of a study’s overall budget.

Applications for this round are due by 2 November 2025.

Once an application satisfies the eligibility criteria, it will be evaluated for value for money in accordance with the merit criteria. To assess value for money, ARENA must be assured that the applicant has effectively demonstrated the necessity of ARENA funding, indicating that the study would not be commercially viable without this support.

Round 1A

Merit Criterion A – Contribution to the Round Objective

Applicants can demonstrate merit by clearly showing how the project will:

• Aid in the creation of a resilient solar PV supply chain, including opportunities to integrate various elements of the supply chain and harness innovation from research to deployment
• Promote innovation and the implementation of advanced automation in solar PV manufacturing
• Innovate existing PV manufacturing techniques, inputs, deployment technologies, and products, including the use of innovative technologies. Consideration will be given to how projects can support the development and commercialisation of Australian innovations and intellectual property
• Reduce barriers to solar PV manufacturing – tackling technical, regulatory, commercial, and social barriers to create replicable and scalable models for solar PV manufacturing
• Develop pathways to promote sustainable and competitive solar PV supply chains, focusing on long-term economic, social, and environmental sustainability

Merit Criterion B – Applicant Capability and Capacity Overview

Applicants can demonstrate merit by providing evidence of their:

Capability relevant to the study, including:

• Management, commercial, professional, regulatory, and technical expertise of the applicant and study partners
• Proven track record of the applicant, study partners, and key personnel in successfully delivering similar projects on time and within budget
• Professional excellence and experience, as well as any relevant accreditations, quality standards, and benchmarks

Capacity relevant to the study, which includes:

• Access to the necessary resources, including personnel, physical resources, and facilities required for the study, along with confirmation of their availability during the study period
• The nature and status of any agreements between study partners

Merit Criterion C – Project Design, including Methodology, Risk, Compliance and Community Benefits

Applicants can demonstrate merit by clearly illustrating the quality and completeness of the following:

• The design and delivery methodology of the project
• The application documentation, including the project plan and all mandatory attachments
• Project definition, encompassing completed development work and the pathway to finalie the Front-End Engineering Design or other early development phases, along with relevant design documents and drawings
• Information regarding land and/or facility access
• Development information, including necessary consent, licensing, permitting, and regulatory processes required to undertake the project
• The project delivery timeline
• Details on the use of renewable energy generation in the project’s power supply, such as behind-the-meter embedded generation or renewable energy procurement
• Procurement information, including the management of the equipment supply chain and proposed sources and suppliers for key components
• Risk management information, including strategies for risk identification and mitigation
• Community engagement and benefit information, outlining how stakeholders—including neighbors, local communities, Traditional Owners, and First Nations groups—are identified and their needs assessed
• Regional transition information, including alignment with existing regional transition plans, priorities, and pathways
• Personnel resourcing information, considering transitions to lower carbon industries, targets for gender equality, First Nations employment, and other opportunities for creating inclusive workplaces
• Compliance with the terms of the funding agreement template and/or term sheet
• Compliance with any additional requirements specified in the guidelines or funding announcement

Merit Criterion D – Financial Viability and Co-Funding Commitment Overview

• The financial capacity of applicants and any project partners to successfully deliver the project, as well as their levels of co-funding commitment
• Whether the project is commercially viable without ARENA funding
• The appropriateness of the funding amount and the total cost of the activity, assessing value for money in comparison to relevant industry benchmarks

Applicants can demonstrate merit by clearly showing:

• The quality and completeness of the project budget and financial model, including supporting evidence
• The total cost of the project, along with a rationale for the funding request, considering appropriate returns to shareholders and positive impacts on local communities

The level of detail and status of financing information, including:

• The conditionality of financing commitments
• The certainty of project sales, including any offtake agreements
• The financial capability of the applicant and project partners to deliver the project, including their ability to contribute necessary equity and manage cost overruns
• The reasonableness of proposed returns to project shareholders

Value for money, which may include:

• The funding request relative to expected production
• The funding request relative to production capacity
• The funding request as a percentage of total project costs

Merit Criterion E – Knowledge Sharing

Applicants can demonstrate merit by clearly illustrating:

• How the knowledge generated will contribute to the Round Objective
• The extent to which the Knowledge Sharing Plan is customised to align with the project’s purpose
• A commitment from the applicants and any project partners to dedicate resources for creating high-quality knowledge-sharing products and communicating results beyond the project consortium, reaching the broader industry, community, and other relevant stakeholders
• The extent to which data, information, and lessons learned from the project will be made publicly accessible, including a clear identification of what will be released to the public, provided to ARENA but classified as commercial-in-confidence and kept confidential

Round 1B

Merit Criterion A – Contribution to the Round Objective

Applicants can demonstrate merit by clearly illustrating how the study will:

• Facilitate the establishment and operation of sustainable, commercially viable solar PV manufacturing facilities
• Encourage innovation and the use of advanced automation in solar PV manufacturing
• Mitigate barriers to solar PV manufacturing

Merit Criterion B – Applicant Capability and Capacity Overview

Applicants can demonstrate merit by providing evidence of their:

Capability relevant to the study, including:

• Management, commercial, professional, regulatory, and technical expertise of the applicant and study partners
• Proven track record of the applicant, study partners, and key personnel in successfully delivering similar projects on time and within budget
• Professional excellence and experience, as well as any relevant accreditations, quality standards, and benchmarks

Capacity relevant to the study, which includes:

• Access to the necessary resources, including personnel, physical resources, and facilities required for the study, along with confirmation of their availability during the study period
• The nature and status of any agreements between study partners

Merit Criterion C – Study Design, Methodology, Risk, and Compliance

Applicants can demonstrate merit by providing evidence of the quality and completeness of:

• The study’s scope and objectives
• The design and delivery methodology of the study
• The application documentation, including the study plan and other required attachments
• The study timeline
• Conditions necessary for progressing study outcomes to further project development
• Risk management information, including risk identification and mitigation strategies
• The extent to which the study addresses community engagement and benefits, including approaches to local communities, First Nations groups, regional transitions, and the development of skills needed for project implementation
• Compliance with any additional requirements specified in the guidelines or funding announcement

Merit Criterion D – Financial Viability and Co-Funding Commitment Overview

Applicants can demonstrate merit by providing evidence of:

• The quality and completeness of the study budget, including necessary supporting documentation
• The total cost of the study, accompanied by a rationale for the funding request
• The level of detail and status of financing information, including the financial capacity of the applicant and study partners to implement the study, their ability to provide necessary equity, and their capacity to manage any potential cost overruns