The Australian Renewable Energy Agency (ARENA) has announced up to AU$151 million (US$98 million) in conditional funding for Sunman Energy to establish a 500MW solar module manufacturing facility in the Hunter Valley, New South Wales (NSW).
This marks the largest single commitment under the federal government’s AU$1 billion Solar Sunshot programme.
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The Hunter Valley Solar Foundry project, led by the Sunman Group and founded by solar pioneer Dr Zhengrong Shi, will develop an advanced manufacturing facility utilising the company’s lightweight solar technology, which highlights domestic innovation in solar technology, according to industry stakeholders.
The facility will reduce solar module costs by approximately 15% by eliminating import expenses, while supporting Australia’s position as a global leader in solar research and deployment.
The NSW government has provided an additional AU$20 million investment to support the project, which aims to commence operations by 2029.
ARENA CEO Darren Miller stated the new Hunter Valley facility will help build Australia’s solar manufacturing capability, reduce reliance on imports and expand the nation’s role in global clean energy supply chains. The project represents a transformation of the former coal-mining region into a hub for renewable energy manufacturing.
Sunman already operates a 1GW manufacturing facility in China and a 500MW facility under construction in the US.
Solar Sunshot programme drives manufacturing renaissance
The funding announcement follows Sunman subsidiary Energus’ receipt of AU$1.3 million through the Solar Sunshot programme earlier this year to support a feasibility study for a 50,000 tonne per annum solar-grade polysilicon production facility in the Hunter Valley.
The study assessed the technical, commercial and environmental viability of producing high-purity polysilicon in Australia.
The Solar Sunshot programme, announced by the Australian government in March 2024, aims to increase Australia’s role in the global solar PV manufacturing supply chain.
Despite Australia having the world’s highest household solar adoption rate, with one in three homes installing rooftop solar PV systems, only 1% of the modules are manufactured domestically.
5B became the first recipient of Solar Sunshot funding, securing up to AU$46 million to expand the manufacturing capacity of its Maverick solar deployment system. The Sydney-headquartered company’s prefabricated solar array system enables rapid deployment of utility-scale projects.
Tindo Solar received AU$34.5 million under the programme to upgrade its Mawson Lakes facility in Adelaide’s northern suburbs, scaling annual output from 20MW to 180MW.
The South Australia-headquartered manufacturer will invest in automation and expand its product range to include premium n-type solar modules, while conducting a feasibility study for a future 1GW gigafactory.
ARENA supported three additional feasibility studies, worth AU$11 million, to explore the local production of polysilicon, ingots and wafers, which are critical upstream components in solar module manufacturing.
These studies examine the technical and commercial viability of establishing domestic supply chains for essential materials used in solar manufacturing.
Second funding round targets supply chain technologies
ARENA launched a AU$150 million second round of the Solar Sunshot programme in September 2025, targeting commercial domestic manufacture of critical segments of the solar supply chain.
The programme provides production subsidies and grants to support innovation across the solar manufacturing sector, with the first phase launching capital and production-linked funding for solar PV manufacturing innovation.
The initiative focuses on modules, inputs to modules and deployment systems to create a comprehensive domestic manufacturing ecosystem.
The Solar Sunshot programme could reshape Australia from a solar consumer to a manufacturing hub, leveraging the country’s abundant renewable energy resources, high-quality raw materials and research excellence.
The initiative also aims to help ARENA achieve its goal of developing ultra-low-cost solar energy. Readers of PV Tech will be aware that ARENA is working towards its vision for ultra-low-cost solar, arguing that a ‘30-30-30’ approach to solar—representing 30% solar module efficiency and an installed cost of AU$0.30 per watt by 2030—could help Australia become a renewable energy superpower.
