Ultra Low Cost Solar PV R&D Funding: Round 4

Purpose and Program Overview

The Ultra Low Cost Solar PV R&D Funding Round 4 is a competitive funding initiative led by the Australian Renewable Energy Agency (ARENA), aimed at significantly reducing the cost of solar photovoltaic (PV) technology. The program’s primary objective is to accelerate innovation and commercialisation across the solar PV supply chain, driving down the Levelised Cost of Electricity (LCOE) for utility-scale solar PV to below $20 per megawatt-hour by 2030. This initiative supports Australia’s transition to net-zero emissions by enabling affordable, reliable, and scalable solar power solutions.

With a total funding pool of $60 million, this program targets ambitious projects that push cost reductions, improve efficiency and stability, and decrease the operational expenses of solar PV systems. The funding focuses on Australia’s solar research, industry players, universities, and startups, fostering collaboration and cross-sector innovation to achieve ultra-low-cost solar power at scale. The program thus plays a vital role in maintaining Australia’s leadership in renewable energy innovation and supporting the energy transition.

The grant supports two major funding streams — Stream 1 focuses on solar cells and modules. In contrast, Stream 2 targets balance of system components, along with operation and maintenance improvements, encompassing all aspects required to lower solar PV system costs effectively.

Key Grant Details

• Grant amount:
  • Minimum $3.5 million for projects under Stream 1 (Cells and Modules)
  • Minimum $2 million for projects under Stream 2 (Balance of System, Operation and Maintenance)
  • Maximum $10 million per project across both streams combined
• Application open: Applications open based on outreach and promotional period (ongoing as of mid-2025)
• Application close: Expressions of Interest (EOI) close 21 October 2025
• Eligible industries/business types: Australian universities, research groups, innovative businesses, startups, and industry collaborators involved in solar PV R&D and commercialisation
• Co-contributions: Minimum 50% co-contribution required; can include cash and in-kind contributions
• Location/state/territory applicability: Australia-wide, with a focus on Australian-based entities

Priority Sectors

Specifically targeted sectors include:

• Solar PV cell and module manufacturing and technology innovation
• Balance of system components, including inverters, trackers, and mounting structures
• Operations and maintenance technologies that reduce lifecycle costs
• Projects leveraging advanced technologies such as artificial intelligence (AI) to optimise solar PV systems
• Collaborative Australian innovation ventures, including partnerships with domestic and international entities

Funding Scope

• Funding streams:
  • Stream 1: Research and development of high-efficiency, low-cost solar cells and modules
  • Stream 2: Innovations in the balance of systems, and operation and maintenance to reduce overall system cost
• Project timeline: Typically, multi-year projects aligned with ARENA program guidelines; applicants submit detailed project plans and risk management documentation
• Eligible activities: Research, prototype development, pilot manufacturing, commercialisation preparation, performance validation, and system integration testing

Grant Amount in Total

• Total available funding of $60 million allocated for Round 4

Eligibility Criteria

• Australian incorporated entities, including universities, research institutes, companies, and consortia with a strong Australian presence
• Projects must have a Technology Readiness Level (TRL) of at least three at the application level
• Demonstrated capability to deliver, manage, and commercialise solar PV innovations
• Compliance with ARENA’s governance, legal, and financial requirements
• Must commit to cost-sharing with a minimum of 50% of the total project costs as co-contributions

Eligible Activities and Expenses

• Solar cell and module innovation research, including materials and device engineering
• Development of the balance of system components for enhanced efficiency and cost-effectiveness
• Advanced operation and maintenance technologies, including predictive analytics and AI
• Pilot scale manufacturing, system testing, and validation
• Intellectual property management and commercialisation efforts
• Collaboration and knowledge sharing activities as part of project milestones

Assessment Process

• Competitive, merit-based process assessed by ARENA panels
• Evaluation criteria include:
  • Alignment with ultra-low-cost solar PV goals and LCOE reduction targets
  • Technical innovation, feasibility, and maturity
  • Commercial potential and scalability
  • Applicant capability and risk management
  • Value for money and overall project impact on energy transition

Recent Program Updates

• Round 4 announced with outreach beginning July 2025, including webinars and promotional events
• Strong encouragement for collaborative and cross-sector proposals, including AI applications
• Increased focus on projects that materially reduce both upfront and operational costs of solar PV
• Applications closing 21 October 2025 for EOIs, followed by invitation to submit full proposals

Application Tips

• Confirm eligibility and project alignment with ARENA’s Ultra Low Cost Solar (ULCS) objectives
• Prepare comprehensive project plans, including risk management, milestones, and detailed budgets
• Emphasise innovation, commercialisation pathways, and scalability in your proposal
• Demonstrate strong co-investment and collaborative capability, including partnerships
• Engage early with ARENA officers during the outreach period for guidance and feedback
• Use official templates and attend program webinars to optimise application completeness

Where to Get Help

Consider consulting with professional grant specialists such as Pattens Group for personalised eligibility assessment and expert assistance in preparing strong, compliant applications. Visit the ARENA and Australian Clean Energy Council websites for detailed program information, guidelines, and application resources.