Australia Plans To Boost Local Solar Module Manufacturing, Allocates Funds

How Australia Plans To Change Its Renewable Energy Landscape

The Australian government has now planned to boost its solar module manufacturing locally. The government yesterday in its latest budget had also announced special packages for boosting solar module manufacturing and renewable energy in the region. 

As per the budget document of the government, the Australian government will allocate $3.2 billion on the next one decade to support the commercialization of technologies, considered as critical to net zero. This also included a fund of $1.7 billion for Future Made in Australia Innovation Fund.

The country has already announced earmarking $1.5 billion to strengthen battery and solar panel supply chains via the Solar Sunshot Program and Battery Breakthrough Initiative.

“The Government is providing $1.5 billion in support administered by the Australian Renewable Energy Agency for the manufacturing of clean energy technologies that strengthens supply chain resilience. The $1 billion Solar Sunshot program will incentivise private investment in solar panel manufacturing capability and the Battery Breakthrough Initiative, costing $523.2 million over seven years, will promote further opportunities to add value to Australia’s critical minerals and target the high-value opportunities in the battery manufacturing value chain,” the budget document said. 

Sunshot Programme of the Australian government refers to its planned announced in March this year which talks boosting the local manufacturing of solar modules in the country. It was meant to be undertaken through production subsidies and grants. As per the government’s own admissions while one in three Australian households harness solar power through their solar panels, merely one percent of the panels are manufactured in the country. 

The budget also talked about integrating consumer energy resources to make energy cheaper for households. “This Budget helps Australians benefit from cheaper, cleaner energy sooner by investing $27.7 million to integrate consumer energy resources like batteries and solar into the grid,” the budget document read. 

The budget document said that special measures were taken to boost solar and clean power for the consumers and made allocations accordingly. “This Budget commits $27.7 million to help Australians benefit from cheaper, cleaner energy sooner by supporting development of priority reforms to ensure consumer energy resources, such as rooftop solar, household batteries and electric vehicles, contribute to our grid,” it said.

“This Budget accelerates the growth of new industries by providing a $1.5 billion extension over seven years to the Australian Renewable Energy Agency’s industry-building investments and establishing the $1.7 billion Future Made in Australia Innovation Fund. This Fund will support innovation, commercialization, pilot and demonstration projects and early-stage development in priority sectors, including renewable hydrogen, green metals, low carbon liquid fuels and clean energy technology manufacturing such as batteries,” the budget document said.