Australia Boosts Solar R&D With A$60 Million Ultra-Low-Cost Solar Fund
Key Insights
The Australian Renewable Energy Agency (ARENA) has launched a new A$60 million funding round for research and development to achieve ultra-low-cost solar.
The initiative aims to reduce the installed cost of solar to 30 cents per watt and achieve a levelized cost of electricity below A$20 per megawatt hour by 2030.
This funding builds on ARENA's substantial prior investments in solar PV R&D, reinforcing Australia's leadership in global solar innovation and technology advancement.
The program seeks to accelerate next-generation solar technologies, which are crucial for meeting Australia's growing renewable electricity demand and decarbonizing heavy industry.
The Australian Renewable Energy Agency (ARENA) has launched a new A$60 million funding round aimed at accelerating research and development (R&D) for ultra-low-cost solar solutions. This significant investment underscores Australia's commitment to advancing solar photovoltaic (PV) technology, with a strategic goal to reduce the installed cost of solar to 30 cents per watt and bring the levelized cost of electricity (LCOE) below A$20 per megawatt hour by 2030. The initiative is crucial for meeting Australia’s escalating demand for renewable electricity and decarbonizing its heavy industry.
The A$60 million funding is structured across two key streams, each allocated A$30 million. Stream 1, focused on Cells and Modules, targets increasing efficiency, reducing manufacturing costs, and improving the stability of PV technology. Stream 2 addresses Balance of Systems, Operation, and Maintenance, aiming to reduce deployment costs, lower operational and maintenance expenses, and innovate for increased yield and overall LCOE reduction.
ARENA has historically been a pivotal investor in solar innovation, having provided over A$388 million to solar PV R&D and an additional A$104 million to support the Australian Centre for Advanced Photovoltaics (ACAP). This sustained investment has positioned Australia at the forefront of global solar research, contributing significantly to the dramatic cost reductions and efficiency gains observed in the global solar industry over the past decade.
Previous ARENA-backed research has led to remarkable advancements, including enhanced solar cell efficiency through advanced characterization techniques, improved solar cell and module reliability, and the application of artificial intelligence and machine learning for PV system optimization. Furthermore, the agency has supported pioneering work in solar panel recycling solutions, fostering a circular solar economy, and the development of next-generation technologies such as tandem solar cells, lightweight flexible panels, and innovative manufacturing processes.
Darren Miller, CEO of ARENA, emphasized the ongoing evolution of solar PV technology as the bedrock of Australia's clean energy transition. "Demand for renewable electricity is expected to increase significantly as Australia moves towards net zero. Ultra-low-cost solar PV is a critical source of electricity to meet this demand and will be a crucial enabler of the energy transition," Miller stated. He added that ARENA's 13-year history of investing in solar innovation has materially shifted Australia's renewable energy landscape. "Our ultra-low-cost vision recognizes that solar must be cheaper still to support and enable the renewable energy transition, especially if we are to decarbonize heavy industry and create new export industries. This funding round is seeking the pioneering innovation Australia is so well known for in solar PV to achieve that vision."