The Australian Renewable Energy Agency (ARENA) has opened the third round of its Solar Sunshot program, making up to AUD $250 million ($174 million) available to support the commercial-scale manufacture of technologies designed to reduce the cost and time required to build and operate large-scale solar projects in Australia. The announcement, made on October 15, 2026, signals a strategic shift in the federal government's $850 million Solar Sunshot initiative-from a primary focus on solar cells and modules to technologies that address the construction and deployment stages of utility-scale solar farms.
Targeting Balance-of-Plant and Deployment Technologies
The third round of funding focuses exclusively on production technologies for solar energy balance of plant, which are commercialized for large-scale solar farms. According to ARENA, the technologies that can be financed include framing and tracking systems, robotics, cutting-edge automation, prefabrication, and other technological innovations capable of minimizing the cost of solar project construction and operation. Applications for funding are accepted from both local and international companies that possess commercially viable technologies and can guarantee large-scale production in Australia.
This type of action corresponds to the ARENA opinion that even if great strides have been made in ultra-cheap solar technology development in terms of solar panels and solar cells production, considerable progress can still be achieved in the development of construction technology for solar projects. The organization announced its vision of 30-30-30 initiation in 2023, planning to accomplish 30% efficiency of the installed solar panels at the cost of 30 cents per watt by 2030, which could lower the cost of electricity produced by solar energy to less than $20 per megawatt-hour, which is about one third of the current price.
A Shift Towards Construction and Deployment Innovation
ARENA General Manager of Solar Dan Sturrock told pv magazine that Round 3 signals Australia is "open for business with the world's best solar innovators that want opportunities to develop or manufacture products at scale in Australia". He emphasised that the round is not merely about supporting individual projects but about building lasting capability. "Not just to manufacture product but to also really focus on product development," Sturrock said, noting that most product development for recent Solar Sunshot Round 2 recipients currently happens in the United States, presenting an opportunity to bring that expertise to Australia.
"We think the next decade is a really exciting time to bring the best innovation from around the world here to Australia and show those products can be produced at scale to drive down the costs and increase the efficiency of how we build large-scale solar in Australia," Sturrock added. He further noted that ARENA expects these technologies to lower costs in the long term as Australia builds out 10 GW of large-scale solar annually, rather than the current 5 GW.
Private Investment and Value for Taxpayers
Applications for Round 3 must demonstrate value for money to taxpayers, with ARENA generally expecting to fund no more than 50 percent of total project costs. Applicants are required to bring their own private investment, whether in the form of capital subsidies to reduce factory construction costs or production subsidies to make first batches of products cost-effective and market-ready at scale. ARENA CEO Darren Miller described the round as more than a grant program, stating: "We are looking for projects that can build lasting capability, strengthen local supply chains and share skills and knowledge across the broader solar sector".
Background and Broader Implications
Solar Sunshot was inspired by the findings of the landmark Silicon to Solar study, which determined that establishing manufacturing capability of 10 GW of polysilicon and 5 GW across other links of the value chain-including ingots, wafers, solar cells, and panels-was "credible and feasible" with the right government policy support. The program was announced in March 2024 with an initial allocation of $1 billion, later rounded down to $850 million to be distributed through production subsidies and grants.
To date, the program has backed several notable recipients. Adelaide-based innovator 5B was the first company to receive funding, awarded $46 million to scale up its prefabricated solar technology. Tindo Solar, Australia's only domestic PV module maker, received $34.5 million in 2025 to expand production from 20 MW to 180 MW per year and to conduct a feasibility study for a future gigafactory capable of producing 1 GW annually. The Hunter Valley Solar Foundry, led by solar research pioneer Zhengrong Shi, secured more than $150 million to build a 500 MW per annum manufacturing facility.
Expressions of Interest and Timeline
Expressions of interest for Solar Sunshot Round 3 opened on November 2, 2026. ARENA has encouraged applicants to contact the agency early to discuss projects with a credible pathway to commercial scale and benefits for Australian capability. The maximum funding available per project is expected to reach up to $40 million, according to Sturrock.
