The Australian Renewable Energy Agency (ARENA) has announced up to A$151m ($98.86m) in conditional funding for a solar module manufacturing plant with an annual production of 500MW in New South Wales’ Hunter Valley.

The funding is part of the government’s A$1bn Solar Sunshot programme, which was announced in March 2024 with an aim to boost domestic solar manufacturing.

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The development is subject to conditions, including the signing of an ARENA funding agreement.

The proposed Hunter Valley Solar Foundry project is an initiative of Sunman Group and its founder, Zhengrong Shi.

Sunman Group, known for its lightweight solar technology, will utilise its expertise to develop advanced manufacturing processes at the site.

The facility is set to manufacture a variety of solar photovoltaic (PV) modules for both the Australian and global markets.

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This includes Sunman’s enhanced architecture-ready composite (eArc) modules, which use durable polymers instead of traditional glass, making them easier to transport and install.

ARENA chief executive officer Darren Miller noted that the initiative aligns with Solar Sunshot’s objectives to decrease dependence on imported products and enhance the nation’s position in global clean energy supply networks.

Miller said: “Deployment of solar PVs at scale is central to meeting our long-term emissions goals. Building our manufacturing capabilities will help ensure that our supply chains are resilient and Australian innovations are supported as we accelerate the rollout of solar PV.

“Solar Sunshot is about building on Australia’s world-leading solar research to expand manufacturing capacity, strengthen supply-chain resilience and grow local jobs and skills. The Hunter Valley Solar Foundry project reflects these goals, bringing together advanced technology, local workforce development and long-term economic benefits for regional communities.” 

Sunman also plans to produce glass modules, establish a solar innovation centre for supporting the commercialisation of new technologies, and operate as a manufacturing foundry for original equipment manufacturers at the plant.

Construction is anticipated to generate up to 200 jobs, with a further 100 ongoing roles once the facility is operational.

The first round of funding under the Solar Sunshot programme offered A$500m for manufacturing innovation, with subsequent rounds supporting feasibility studies and further manufacturing initiatives.

In September 2025, ARENA began the second funding phase of the Solar Sunshot initiative.

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