One billion dollars pledged to boost local solar manufacturing supply chain

Prime Minister Anthony Albanese announced the Federal Government's investment in the Solar Sunshot program at the site of the former coal-fired Liddell Power Station today.

Woman solar

The Federal government has announced a $1 billion investment in the Solar Sunshot program, to increase sovereign capability while advancing the nation's renewable energy ambitions, both domestically and internationally.

The Solar Sunshot program will focus on the goal of securing a greater share of the solar manufacturing supply chain for Australia. Through a combination of production subsidies, grants, and support, the initiative seeks to bolster domestic solar panel manufacturing, with a particular focus on regions like the Hunter Region.

The Australian Renewable Energy Agency (ARENA) will now work with industry to design and deliver this initiative, along with the Australian Government. ARENA will look at the entire supply chain from ingots and wafers to cells, module assembly, and related components, including solar glass, inverters, advanced deployment technology and solar innovation. The consultation is expected to commence in mid-April.

This complements other processes underway such as the Hydrogen Headstart program also administered by ARENA.

“We have every metal and critical mineral necessary to be a central player in the net zero transformation, and a proven track record as a reliable energy producer and exporter," said Prime Minister Albanese.

“We can also invest in strategic manufacturing capability, particularly in components critical to the energy and economic transition, like solar panels."

“Historically, Australia has been good at going from the mining pit to port, and long may this continue. But the Australian Government will also invest in the path from pit to panels and capture more value for our economy and workforce,” PM Albanese said.

In parallel with Solar Sunshot, the NSW Labor Government is delivering the NSW Net Zero Manufacturing Initiative, with the $275 million first round now open to support workers, small businesses, manufacturers and innovators to take advantage of the transformation of our energy grid.

The second round will focus on leveraging government procurement to support local renewable products and materials.

Legislation has also been introduced this week to establish the Net Zero Economy Authority. The Net Zero Economy Authority Bill 2024 (NZEA Bill) delivers on the Government’s commitment (announced by the Prime Minister in 2023) to establish a new independent statutory authority to promote orderly and positive economic transformation as the world decarbonises.

“We will leverage our government procurement spend to build in offtake agreements with local solar manufacturers and foster the industry’s growth," said NSW Minister for Domestic Manufacturing and Government Procurement Courtney Houssos.

“For every job created in manufacturing there are a further three-and-a-half jobs sustained in the supply chain."

“The NSW Labor Government is committed to rebuilding the domestic manufacturing sector and bringing jobs back to NSW.”

As the nation embarks on this ambitious path towards a renewable energy future, collaboration between government, industry, and research institutions will be key to unlocking the full potential of Australia's renewable resources while driving economic prosperity and environmental sustainability.

Interested stakeholders can register their interest in participating in the consultation process at

Read more about the NSW Net Zero Manufacturing Initiative

Energy Industry Partners


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