ARENA Solar ScaleUp Challenge

Purpose and Program Overview

The ARENA – Solar ScaleUp Challenge is a global innovation initiative designed to unlock the immense scale required for Australia’s renewable energy transition. The primary intent is to stimulate groundbreaking innovations that can dramatically reduce the cost of solar photovoltaic (PV) technology to below $20 per megawatt hour (MWh), a goal deemed essential to unlocking 1 terawatt (TW) of installed solar capacity in Australia by 2050.

The program supports businesses and innovators by providing a pathway to funding, fostering a highly collaborative environment for working with industry leaders, and offering global exposure for proven technology solutions. It specifically targets the high cost of utility-scale solar deployment, aiming to reduce the costs associated with installation, operations, and maintenance.

A total funding pool of $100 million is available under this program. This investment seeks to position Australia as a global leader in ultra-low-cost solar technology, which is critical for decarbonising hard-to-abate sectors like industry and transport, and fulfilling Australia’s vision of becoming a renewable energy superpower.

Key Grant Details

Key details for the Solar ScaleUp Challenge funding are as follows:

• Grant amount or funding range: Individual projects have no set minimum or maximum funding limits. Grants will be determined based on project scope and impact. (For reference, early announced recipients received up to $4.9 million).
• Application open and close dates: The initial Challenge Submission (Phase 1) closed on August 14, 2024. Grant applications and funding decisions (Phase 3) commenced in October 2024 onwards.
• Eligible industries or business types: A wide range of stakeholders are eligible, including innovators, technology developers, solar project developers, engineers, constructors, owners, operators, financiers, and customers.
• Required co-contributions: The provided source material does not explicitly mandate a co-contribution ratio for this Challenge.
• Location/state/territory applicability: Projects that are ultimately funded by ARENA need to take place in Australia, though project partners can be based anywhere in the world.

Priority Sectors

The program exclusively focuses on Solar Photovoltaics (PV), specifically targeting innovations for utility-scale ground-mounted solar farm applications.

Priority solutions include those that reduce:

• ‘Balance of plant’ and installation cost/timelines (e.g., robotics, automation, innovative design).
• Operations and maintenance costs (e.g., intelligent fault detection, automated cleaning).
• Levelised Cost of Energy (LCOE) through other means (e.g., extending asset lifetimes, reducing degradation).

Funding Scope

The funding is designed to support the development and commercialisation of late-stage solar technology:

• Funding range: No set minimum or maximum limits were announced for grants awarded to successful Challenge participants.
• Categories or streams of funding: Support is available for late-stage prototypes, pilots, demonstrations, and deployment projects, which may include limited feasibility activities as an integral part of the project.
• Excluded activities: Funding is restricted from supporting lab research (projects must be at TRL 4 or higher), large-scale manufacturing facilities (the focus of the Solar Sunshot Program), non-ground-mounted applications (rooftop, floating, etc.), and other forms of renewable energy (solar thermal, standalone wind/storage).

Eligibility Criteria

The Challenge aims to bring together a diverse ecosystem of stakeholders. Key requirements include:

• Project Location: The funded project must take place in Australia.
• Technology Readiness Level (TRL): Projects must have progressed beyond lab research and have completed an initial prototype (i.e., minimum TRL 4).
• Eligible Applicants: Innovators/technology developers, project developers/EPCs, solar project owners/operators, customers, Original Equipment Manufacturers (OEMs), and Financiers.
• Partners: International project partners are permitted to participate in the project team.

Eligible Activities and Expenses

The Challenge supports activities that demonstrate significant cost reduction and scale-up potential for utility-scale solar PV:

• Technology Development and Deployment: Funding for late-stage prototypes, pilot projects, demonstrations, and full-scale deployment activities.
• Innovation: Trials of innovative solar farm design, robotics, automation, advanced analytics, and artificial intelligence for installation or maintenance.
• Adaptation of Technology: Projects adapting market-leading innovations from other industries for solar farm applications.
• First-of-a-Kind Trials: Trials of innovative overseas technology not yet demonstrated in Australia.
• Hybrid Projects: Integrated or co-located solar, storage, and wind assets may be considered, provided the focus is primarily on the solar PV innovation.

Assessment Process

The Solar ScaleUp Challenge employed a competitive, multi-phase structure:

1. Phase 1: Challenge Submission (Closed).
2. Phase 2: Evaluation and Showcase (Completed).
3. Phase 3: ARENA Application and Grant Decisions (Commenced October 2024 onwards).

The key evaluation criteria used to assess the proposals include:

• Alignment to the Challenge Topic: Direct contribution to achieving ultra-low-cost solar.
• Technical Viability and Feasibility: The practical and engineering soundness of the solution.
• Scalability: The potential for the solution to be deployed at massive, utility-scale across Australia and internationally.
• Innovation: The novelty and breakthrough nature of the technology or commercial solution.
• Impact: The potential to reduce LCOE and unlock TW-scale capacity.
• Expertise and Experience: The capability of the project team to execute the proposed work.

Recent Program Updates

The competitive challenge phase has concluded. Grant applications and funding decisions for successful teams identified through the Challenge process commenced in October 2024. The Challenge is specifically designed to complement the separate $1 billion Solar Sunshot Program, with the Challenge focusing on deployment and the Solar Sunshot focusing on domestic manufacturing.

Application Tips

While the initial submission phase is complete, applicants proceeding to the grant stage should focus on:

• Quantifying Impact: Using clear metrics and data, explain how the innovation will contribute to the target LCOE of under $20/MWh and 1 TW capacity.
• Ground-Mounted Focus: Ensure the project strictly adheres to the restriction of being a ground-mounted, utility-scale application.
• Partnership Strength: Highlight the combined expertise and experience of all stakeholders, including international partners, to show capability for commercialisation and deployment at scale.
• Technical Readiness: Provide robust evidence that the technology has successfully completed the initial prototype stage (TRL 4) and is ready for pilot or demonstration.

Where to get help

Consider consulting a grant specialist for a personalised eligibility assessment and expert assistance in preparing a strong, compliant and competitive application. Contact Pattens Group today and get connected with the Australia’s best grant specialist, boasting over 35 years of experience in the industry and a 100% success rate. For official guidelines, application details, templates, and further information, visit the official website of ARENA Solar ScaleUp Challenge Program and other associated Australian government websites.