ARENA Solar Sunshot Round 2

Purpose and Program Overview

Solar Sunshot Round 2 is a national funding round under the Australian Government’s $1 billion Solar Sunshot Program, delivered by the Australian Renewable Energy Agency (ARENA). It is designed to accelerate commercial‑scale manufacturing and deployment of solar photovoltaic (PV) technologies in Australia, with a specific focus on inputs to solar PV modules and deployment solutions.​

Round 2 provides up to $150 million in competitive funding to support projects that advance, automate and scale local manufacturing of solar module components and deployment technologies, intending to lower costs, strengthen domestic supply chains and increase Australia’s solar deployment capacity. The program forms part of the broader Future Made in Australia policy framework, supporting sovereign capability, jobs, skills development and reduced reliance on global supply chains in the clean energy sector.​

Key Grant Details

• Grant amount or funding range: Expected funding per project in the range of approximately $2 million to $20 million, with ARENA retaining discretion to consider proposals outside this range.​
• Total Round 2 funding pool: Up to $150 million in funding available across eligible projects.​
• Application process and key dates: Round 2 uses a two‑stage process (Expression of Interest followed by Full Application for shortlisted projects); submissions open 23 September 2025, with EOI closing 30 April 2026 as currently advised.​
• Eligible industries or business types: Australian incorporated entities involved in solar PV manufacturing, component production, deployment technologies and associated supply chains.​
• Required co‑contributions: Applicants must provide significant co‑funding; ARENA funding is designed to bridge viability gaps rather than fully fund projects.​
• Location/state/territory applicability: Open to businesses operating in Australia with eligible projects delivered within Australia.​

Priority Sectors

Round 2 prioritises projects within the solar PV value chain, particularly those focused on inputs to modules (such as wafers, cells, glass, frames and other components) and deployment technologies (including mounting, tracking and associated balance‑of‑system solutions).​

The Solar Sunshot Round 2 also targets sectors and projects that contribute to resilient renewable energy supply chains and green energy industries in Australia, including advanced manufacturing linked to solar PV and large‑scale solar deployment.​

Funding Scope

• Minimum and maximum amounts: Projects are generally expected to seek between $2 million and $20 million in ARENA support, though applications outside this range may be considered where strongly justified.​
• Forms of funding: Support may be provided as capital grants for eligible project expenditure and/or production credits paid on a per‑unit output basis over time, with production credits typically available for up to 10 years with quarterly payments and annual reconciliations.​
• Funding focus: Funding can support commercial‑scale manufacturing, scale‑up of new or additional production capacity, and deployment of technologies that reduce the cost and improve the performance of solar PV systems.​
• Project timeline: Projects must demonstrate a clear delivery schedule, with milestones and completion timelines consistent with ARENA’s requirements; production credit support is generally linked to actual output over the agreed term.​

Eligibility Criteria

• Applicants must be incorporated entities with an Australian Business Number (ABN) and operate in Australia.​
• Projects must be located in Australia and align with the program and round objectives, including strengthening solar PV manufacturing and deployment capability.​
• Applicants must demonstrate organisational capability, technical expertise, project delivery capacity and financial viability to complete the proposed project.​
• Co‑funding from the applicant and/or partners is required, and ARENA funding must be the minimum necessary for the project to proceed.​
• Applicants must comply with relevant Australian laws, ARENA’s policies, and provide mandatory documentation, including project plans, financial information and knowledge‑sharing commitments.​

Eligible Activities and Expenses

• Establishment or expansion of commercial‑scale manufacturing facilities for solar PV module components and related inputs.​
• Procurement and installation of capital equipment to automate or scale manufacturing and deployment processes.​
• Development and deployment of innovative solar PV mounting, tracking and balance‑of‑system technologies that reduce installation and lifecycle costs.​
• Activities required to bring new or expanded manufacturing or deployment capacity online, excluding support for existing, business‑as‑usual production.​

Assessment Process

• Funding type: Solar Sunshot Round 2 is a competitive, open, merit‑based round, using an EOI stage followed by a Full Application stage for invited applicants.​
• Assessment stages: Eligibility and merit are assessed at both EOI and Full Application stages, with ARENA retaining discretion to progress or discontinue applications.​
• Key merit criteria typically include:
  • Project merit and contribution to program and round objectives.​
  • Strategic alignment with Australian solar manufacturing and deployment priorities, including supply chain resilience and cost reduction.​
  • Value for money, additionality, and the extent to which ARENA support are critical for project delivery.​
  • Capability and capacity of the applicant, project risks and mitigations, and strength of the knowledge‑sharing plan.​

Recent Program Updates

• Solar Sunshot Round 2 has been launched with up to $150 million in funding to extend support for Australia’s solar PV supply chain following the initial round of the Solar Sunshot Program.​
• Round 2 specifically focuses on inputs to solar PV modules and deployment technologies, reflecting updated policy priorities under the Future Made in Australia framework and ARENA’s continued emphasis on sovereign renewable energy manufacturing capability.​
• The current timetable confirms the opening of submissions in September 2025, with an EOI closing date in April 2026, noting that ARENA may amend timelines at its discretion.​

Application Tips

• Carefully review the official ARENA guidelines, funding announcement and template documents to confirm eligibility, required evidence and compliance obligations before preparing an EOI.​
• Ensure the project clearly addresses the round objectives, including strengthening domestic solar PV manufacturing, improving deployment efficiency and contributing to resilient, low‑cost renewable energy supply chains.​
• Prepare robust technical, commercial and financial documentation, including project plans, budgets, risk management strategies and knowledge‑sharing approaches that demonstrate capability and credible delivery.​
• Clearly articulate co‑funding sources, demonstrate that ARENA support is essential for project viability, and present strong value for money and long‑term industry impact.​
• Allow sufficient time to engage partners, gather supporting evidence and refine the proposal across both the EOI and Full Application stages.​

Where to Get Help

Consider consulting a grant specialist like Pattens Group for a personalised eligibility assessment and expert assistance in preparing a strong, compliant and competitive application. Contact us today, and a highly experienced grant specialist with a long track record of success in Australian government funding programs can support strategy, documentation and submission quality. For official guidelines, application details, templates and further information, visit the Solar Sunshot Round 2 program page on the ARENA website and other associated Australian Government resources.