Australia is one of the world’s most enthusiastic adopters of solar power. Millions of households have installed rooftop panels, utility-scale solar farms are spreading across the landscape, and the sun-drenched continent has an almost limitless renewable resource. Yet there is a paradox at the heart of this success story: almost all the solar panels Australians install are imported. This reliance on overseas manufacturing has prompted a strategic push to rebuild domestic solar manufacturing capability, and the early results are beginning to take shape.
The Australian Renewable Energy Agency is delivering the one-billion-dollar Solar Sunshot Program to support innovation in Australia’s solar photovoltaic manufacturing industry. This initiative represents a fundamental shift in thinking about energy security. The deployment of solar at scale is central to meeting Australia’s long-term emissions goals, but ARENA CEO Darren Miller emphasises that building manufacturing capabilities is essential to ensure supply chains are resilient and Australian innovations are supported.
One of the most significant projects to emerge from this program is the Hunter Valley Solar Foundry, an initiative of the Sunman Group founded by solar pioneer Dr Zhengrong Shi. ARENA has announced up to 151 million dollars in conditional funding for the establishment of a 500-megawatt per annum solar module manufacturing facility in the Hunter Valley, New South Wales. The facility aims to produce a range of solar PV modules for domestic and international markets, including Sunman’s proprietary eArc modules, which replace traditional glass with durable polymers, making them up to 70 percent lighter and faster to install.
Dr Shi’s involvement is particularly symbolic. He began his pioneering solar research in Australia before global ambitions took him abroad to scale up solar manufacturing. With Solar Sunshot backing, this new facility will bring world-leading solar expertise back to Australian shores. The project is expected to create up to 200 construction jobs and another 100 ongoing roles once operational, with an advanced manufacturing training program to ensure local workers can build capability in next-generation solar production.
Further north in Queensland, another ambitious project is taking shape. Stellar PV’s Project Clean Wafers is planned to establish Australia’s first commercial-scale two-gigawatt silicon ingot and photovoltaic wafer manufacturing facility at Townsville’s Lansdown Eco Precinct. The federal government has awarded the project Major Project Status, recognising its strategic importance. With 500 million dollars in investment from Stellar PV, the facility represents a significant step in building the intermediate stages of the solar supply chain—the wafers that form the foundation of every solar panel. Federal Industry and Innovation Minister Tim Ayres noted that the project will produce 300 good blue-collar jobs in North Queensland and strengthen Australia’s position in local and global supply chains.
The broader Lansdown Eco Precinct is expected to generate 5,000 construction jobs and approximately 1,600 permanent technical and engineering roles. This is not just about energy—it is about re-industrialising a region that needs investment for its economic future. As Minister Ayres put it, “Australian-made solar panel components means good jobs and cheaper electricity”.
Tindo Solar, Australia’s only existing solar panel manufacturer, has also received a 34.5 million dollar Solar Sunshot boost to lay the groundwork for a sustainable Australian solar supply chain. The company’s expansion reflects a growing recognition that Australia cannot afford to be entirely dependent on imported technology for its most important energy source. With Australia expected to have around 130 gigawatts of solar power operating in the National Energy Market by 2050—almost half of total generation capacity—the stakes could hardly be higher.
The challenges are considerable. Australian manufacturers must compete with established players in China and Southeast Asia who benefit from massive economies of scale. Building a complete supply chain from polysilicon to finished modules will require sustained investment, skilled workforce development, and supportive policy frameworks. But the direction of travel is clear. For the first time in decades, Australia is moving from being merely a consumer of solar technology to becoming a producer of the components that will power the global energy transition. For updates on Solar Sunshot and domestic solar manufacturing, visit https://arena.gov.au/news/.
