Australia will set up an AUD1bn (USD653m) fund to ramp up domestic production of solar panels, in a move to accelerate the transition towards renewable energy, as reported by Reuters on March 28. Australian Prime Minister, Anthony Albanese, announced this Solar Sunshot program aimed at elevating Australia’s position in the global solar manufacturing supply chain. The Australian Renewable Energy Agency will run the program and provide grants and production subsidies for solar manufacturers. Additionally, the Australian Renewable Energy Agency (ARENA) will help with the design and delivery of the initiative, overseeing the entire solar supply chain covering ingots, wafers, cells, module assembly, and related components.

Australia has the highest uptake of rooftop solar in the worldone in three Australian homes have installed rooftop solar panels. However, only 1% of Australia’s panels have been made locally, with more than 90% coming from China. By incentivizing solar manufacturers, Australia aims to reduce its dependence on China in its transition towards renewable energy. The government has kept increasing spending on new wind, solar, and battery storage projects since 2022, committing more than AUD40bn towards these areas. It aims to have 82% renewable energy in its power grid by 2030, a huge leap from the current level of around 40%. Albanese also highlighted Australia’s abundant metal and critical mineral resources needed to be a central player in the net-zero transformation, alongside its track record as a reliable energy producer and exporter.

Sources:

https://www.reuters.com/sustainability/sustainable-finance-reporting/australia-create-653-mln-fund-expand-solar-panel-manufacturing-2024-03-27/

https://asia.nikkei.com/Business/Energy/Australia-sets-up-650m-fund-for-domestic-solar-panel-manufacturing

https://www.bloomberg.com/news/articles/2024-03-27/australia-plans-solar-sunshot-to-counter-china-panel-dominance