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ARENA funds innovative solar projects to cut generation costs

01 Sep, 2026
Solar power reshapes the future of fuels



The Australian Renewable Energy Agency (ARENA) will invest up to AU$105.6 million in funding across 20 research and development projects aimed at driving down the cost of large-scale solar power generation.

The funding package represents ARENA’s largest single investment in solar photovoltaic (PV) research to date. The funds will target breakthroughs across the entire supply chain, from advanced cell efficiency to farm design, construction, and maintenance innovations.

The initiative directly supports ARENA’s ultra low-cost solar ambition, which targets reducing installed solar costs to 30 cents per watt by 2030 to make solar-generated electricity significantly cheaper.

ARENA acting CEO Chris Faris said the funding expansion reflects the exceptional calibre of proposals submitted.

The agency originally earmarked $60 million for the Ultra Low-Cost Solar PV R&D funding round before increasing the pool to accommodate a broader range of high-value applications.

“Australia has played a leading role in the development of solar technology, and these projects will help ensure we continue to strengthen that position,” Faris said.

“The portfolio brings together a mix of near-term improvements and breakthrough technologies that have the potential to lower costs, improve performance, and accelerate the deployment of solar energy both in Australia and around the world.”

The portfolio spans two targeted streams. Stream 1 allocates funding to 13 projects focusing on cells and modules, including perovskite and silicon tandem cell performance, ultraviolet resilience, and material discovery.

Stream 2 allocates resources to seven projects concentrating on balance of systems, artificial intelligence-driven operations, risk mapping, and lightweight solar hardware.

Major research institutions dominate the funding recipients, with the University of New South Wales (UNSW) securing multiple grants alongside the Australian National University (ANU), the University of Melbourne, and the University of Sydney. Private sector recipients include Sunspence Pty Ltd and Proa Energy Australia Pty Ltd.

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AUSTRALIAN RENEWABLE ENERGY AGENCY – ARENA

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