Solar Sunshot Round 2 opens, turns focus to frames, glass and junction boxes
Round 2 of the Solar Sunshot program aims to expand Australian solar manufacturing across more stages of the supply chain.
The Federal Government has directed $150 million towards expanding local solar manufacturing into supply chain components such as framing, glass and deployment technologies through Round 2 of the Solar Sunshot program.
While about one in three Australian households now use rooftop solar, less than one per cent of those panels are produced locally. The new funding round is designed to shift that balance by supporting Australian companies to manufacture key components such as framing, solar glass, junction boxes and deployment systems.
“When it comes to powering our future, nothing beats our sun and our solar know-how. That’s why Solar Sunshot is all about making more of the clean energy technology we need right here in Australia,” Minister for Climate Change and Energy Chris Bowen said.
Round 1 of the $1 billion program focused on solar module production and is continuing to be assessed by the Australian Renewable Energy Agency (ARENA), who will also manage applications and assessment for Round 2. Support from the first round is already helping companies including 5B and Tindo Solar expand their local production capacity.
ARENA has confirmed that Round 2 is aimed at inputs to modules and technologies for deployment, with a strong focus on automation, balance of plant efficiency and reducing the cost of solar power over time. Projects are expected to involve commercial-scale manufacturing of technologies at advanced development stages, and applicants must demonstrate how they will work with communities to provide benefits such as secure jobs, skills development and supply chain resilience.
Bowen said the program was designed to strengthen local industry while preparing for Australia’s future energy needs.
“Round 1 is already proving that with the right backing, Australian companies can scale up solar manufacturing. Round 2 is the next step – targeting critical parts of the supply chain to build resilience, security and new jobs,” Bowen said.
ARENA will host an information webinar on 23 September 2025 to outline requirements for applicants. Funding proposals must address program guidelines and meet scope requirements including technology readiness, commercial scale and community benefit principles.
