Solar Sunshot

Solar Sunshot – Round 1B

  • The Solar Sunshot Round 1 program:
    • Round 1B Full Application submissions due 12 November 2025
  • The Australian Government unveiled a $1 billion funding commitment on March 28, 2024, for the Solar Sunshot program, aimed at building Australia’s solar photovoltaic (PV) manufacturing capabilities.

The Solar SunShot program provides up to $1 billion to support innovative solar PV manufacturing across Australia. It covers the entire supply chain, including polysilicon production, module assembly, and related areas like solar glass and deployment technology. Proposals will be evaluated individually based on merit, with two funding rounds announced - Round 1A - Solar PV Manufacturing Innovation and Round 1B -Solar PV Manufacturing Studies. This program falls under the Economic Resilience and Security Stream of the Australian Government's Future Made in Australia policy agenda.

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 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 12 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 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

What is eligible for funding?

Round 1B

Eligible expenditure includes:

Labour expenditure

  • Salaries and wages
  • Workers’ compensation insurance
  • Employer contributions to superannuation
  • Recreation and sick leave
  • Long service leave accrual
  • Payroll tax

Administrative expenses includes:

  • Costs related to communications
  • Accommodation expenses
  • Computing facilities
  • Travel expenses
  • Recruitment costs
  • Printing and stationery

Equipment expenditures include:

  • Costs for plant installed for the study at the full delivered cost

For equipment or plant used in the construction of the study:

  • Hire or lease costs

Running costs directly related to construction:

  • Rent
  • Power
  • Fuel
  • Repairs and maintenance

Activities that support or enable knowledge sharing or information collection for the study include:

  • Development of databases
  • Creation of websites
  • Development of web-based applications
  • Production of reports

Other expenditures include:

  • Legal, audit, and accounting costs directly related to the study
  • Costs associated with fundraising for the study or the establishment of consortia, joint ventures, or other partnerships directly tied to the study
  • Licence fees or expenses for acquiring intellectual property needed to access specific technology for the study
  • Costs incurred to obtain government approvals necessary for undertaking the study

In order to be eligible projects will:

  • Collaborate to achieve positive outcomes for local communities, First Nations communities, and the regions where the projects are implemented
  • Increase the solar PV workforce by creating new safe and secure jobs and providing opportunities for skills development and training to build a skilled and inclusive workforce
  • Enhance the resilience of the solar PV supply chain
  • Demonstrate how the project will interact with communities to provide meaningful benefits

What companies are eligible for funding?

In order to be eligible companies must:

  • Have an Australian Business Number and be an Australian entity registered under the Corporations Act 2001
  • Demonstrate that the study/project will primarily be conducted in Australia
  • Agree to a Knowledge Sharing Plan for the project, aimed at informing the industry and the broader community about the project’s development and results

Round 1B

  • Demonstrate that the study qualifies as either a Feasibility Study or Engineering Study as defined in this funding announcement and includes an evaluation of a project that meets the scope requirements
  • Demonstrate that the study pertains to a site or sites located in Australia

Is this grant competitive or entitlement based?

Competitive. Your application will be assessed among other applications by a judging panel.

How can I increase my chances of winning this grant?

By engaging an accredited government grants consultant, such as Avant Group.

Competitive grants often require significant business case development and project analysis to support the application, this may include detailed presentations supporting the project’s merit, projected sales, cost-benefit analysis and more.

As part of your engagement with Avant Group, your account manager will assess the required documents and will provide the following as needed to support your grant submission.

Grant application writeup including a detailed presentation illustrating how the grant funding will contribute to your project, how the funding will contribute to the project’s budget, a project milestone plan, delivery timeline, impact on employment if applicable and a breakdown of the management and leadership team for the project

  • Industry analysis presentation
  • Competitor Analysis Presentation
  • Marketing and Sales Analysis Presentation
  • 3-5 year Cashflow Forecast
  • 3-5 year Balance Sheet Forecast
  • Cost-Benefit Analysis of Grant Funding
  • End-to-end grant application including information collating, analysis and application writing
  • CAPEX (Capital Expenditure) cost-benefit analysis
  • Stakeholder relations and Risk Mitigation Plans
  • Any other relevant forecasting that will support your application

How can I get help with my application? Or know if I’m likely to win funding?

Avant Group offers a no-obligation assessment of your eligibility for funding and will assess your likelihood of a successful grant application.