New solar funding round backs robotics, automation and Australian manufacturing
Australian engineering, manufacturing and technology companies will be able to apply for funding generally ranging from $2 million to $40 million per project under the third round of the Solar Sunshot program, which aims to develop Australian manufacturing capabilities and reduce the cost of building large-scale solar farms.
The Australian Renewable Energy Agency (ARENA) has allocated up to $250 million to Solar Sunshot Round 3, with expressions of interest opening on Monday 2 November 2026.
The funding will support companies seeking to establish or expand manufacturing operations in Australia, particularly those developing equipment and technologies that make solar farms cheaper and faster to construct.
Unlike earlier rounds that supported solar panel manufacturing and components, Round 3 focuses on the equipment and processes used to build and operate large-scale solar facilities.
ARENA is seeking proposals involving solar mounting and tracking systems, robotics, advanced automation, prefabricated components and other technologies capable of reducing construction and operating costs.
Eligible NSW manufacturers and technology developers can apply, alongside businesses elsewhere in Australia and Australian-incorporated subsidiaries of international companies.
Reducing the cost of building solar farms
While Australia's solar industry has grown rapidly, constructing large-scale solar farms still involves substantial labour, equipment and infrastructure costs.
Projects require supporting structures, foundations, tracking systems and the installation of large numbers of photovoltaic modules, often across extensive sites.
ARENA wants to support manufacturing technologies that can improve the efficiency of these activities while developing production capabilities within Australia.
ARENA CEO Darren Miller said the next stage of solar development would depend on reducing construction costs and increasing the industry's capacity to deliver projects.
“Australia is already a world leader in deploying solar. The next challenge is to reduce the cost and complexity of building projects at much greater scale,” he said.
“We want to hear from ambitious Australian and international companies with commercially mature technologies that can manufacture at scale in Australia.”
ARENA is particularly interested in projects with a credible pathway to commercial-scale production, rather than early-stage research or small-scale manufacturing trials.
Under the funding requirements, projects are generally expected to involve technologies that have reached at least Technology Readiness Level 8 and Commercial Readiness Index 3 when manufacturing begins.
This means applicants will need to demonstrate that their technologies are sufficiently developed and commercially mature to support manufacturing at scale.
Funding for commercially mature technologies
ARENA expects funding requests under Round 3 to generally range from $2 million to $40 million per project, although it may consider proposals outside that range.
Support will be provided through grants, which may include capital grants, production credits or a combination of the two.
Capital grants can support eligible project investment, while production credits are linked to manufacturing output under arrangements specified in the program documents.
Applicants must hold an Australian Business Number and be an Australian entity incorporated under the Corporations Act 2001. Projects must primarily take place in Australia.
The program is therefore open to eligible Australian companies and Australian-incorporated subsidiaries of international businesses, rather than international companies applying directly without an Australian incorporated entity.
Commercial-scale manufacturing must be the central activity of each project. Technology development and deployment may be supported where they contribute to that manufacturing activity.
Round 3 does not cover the manufacture of solar photovoltaic cells or modules, upstream materials such as polysilicon, solar thermal technology, pilot-scale manufacturing, feasibility studies or recycling activities.
ARENA will assess applications against criteria including technical and commercial capability, project design, financial viability, workforce development and community benefits.
Applicants will also need to demonstrate that government funding is necessary for their projects to proceed.
Building Australian manufacturing capability
The round forms part of ARENA's $850 million Solar Sunshot program, which is intended to develop Australian manufacturing capabilities across the solar photovoltaic supply chain.
Earlier funding rounds have supported projects involving solar module manufacturing, components and technologies used in solar farm construction.
Recipients include Tindo, 5B and Sunman, alongside companies developing robotic systems for large-scale solar deployment.
On 13 October, ARENA announced up to $31.1 million in funding for two robotics manufacturing projects in Melbourne and Brisbane.
Luminous Robotics will receive up to $17.8 million to establish a Melbourne manufacturing facility for autonomous solar panel installation robots.
The company aims to manufacture and deploy approximately 100 of its LUMI robots by 2029, building on earlier demonstrations at Australian solar farms.
Built Robotics Australia will receive up to $13.3 million to establish manufacturing capabilities in Brisbane for autonomous foundation piling systems.
The project includes plans to manufacture and deploy 12 robotic piling systems, which could automate part of the labour-intensive process of installing foundations for solar farms.
Both facilities are planned developments supported by ARENA funding, rather than manufacturing operations already established under the new grants.
The projects provide examples of how automation and locally manufactured equipment could change the way large-scale solar farms are constructed.
Opportunities for NSW industry
Round 3 could provide opportunities for NSW companies with established expertise in engineering, manufacturing, automation and industrial equipment.
Technologies used to manufacture mounting structures, install solar panels or improve construction processes may fall within the scope of the program, provided they meet ARENA's eligibility and commercial readiness requirements.
ARENA also wants supported projects to contribute to workforce development and share technical knowledge with the wider Australian solar industry.
The agency says strengthening domestic manufacturing and supply chains is intended to help Australia reduce its reliance on imported equipment while improving the efficiency of large-scale solar construction.
Applications open 2 November
Expressions of interest for Solar Sunshot Round 3 open on Monday 2 November 2026.
ARENA is encouraging prospective applicants to contact the agency before applying to discuss their project's suitability for the program.
The application process generally involves an initial expression of interest, followed by an invitation to submit a full application for projects that progress through the first stage.
Expressions of interest must be submitted by 12 November 2027, with invited full applications due by 12 April 2028. ARENA may amend the timetable.
Program guidelines, funding requirements, application templates and information webinar materials are available through ARENA's website.
