Albanese Government Injects $34.5 Million to Boost Solar Panel Manufacturing in South Australia

The government ramps up local solar production, while energy costs keep rising.

Solar panels are seen at solar farm on the northern outskirts of Canberra, Australia on June 15, 2022. AAP Image/Mick Tsikas

The federal government has announced $34.5 million in funding to expand solar panel manufacturing at a factory in South Australia.

The money will support Adelaide-based Tindo Solar, helping it lift production from 20 megawatts to 180 megawatts per year, enough to power around 35,000 homes.

The funding is part of Solar Sunshot, a $1 billion initiative aimed at strengthening Australia’s solar panel production and reducing reliance on imports.

The program is managed by the Australian Renewable Energy Agency (ARENA).

Climate Change and Energy Minister Chris Bowen said the expansion would create local jobs and improve Australia’s clean energy manufacturing capabilities.

“Tindo’s expansion will help secure local jobs, strengthen solar supply chains, boost our clean energy manufacturing capability, and ensure we have a future made right here in South Australia,” Bowen said.

The government said the upgrade is expected to create at least 50 new jobs and could lead to a larger facility, known as a gigafactory, capable of producing panels for 200,000 homes annually.

Tindo is the second company to receive funding under the scheme, following a $46 million grant to solar innovator 5B earlier this year.

Focus Expands to Other Solar Components

ARENA has also announced grants for companies developing other parts of the solar manufacturing process.

This includes $5 million for Solquartz to study a proposed low-emissions polysilicon plant near Townsville, and $1.3 million for Energus to investigate similar work at AGL’s Hunter Energy Hub.

A further $4.7 million was awarded to Stellar PV for a feasibility study into building a 2-gigawatt ingot pulling and wafering plant, also in the Townsville region.

The agency said these projects are aimed at boosting Australia’s capacity to produce key components of solar panels domestically.

Costs Rising Across the Grid

But while the federal government is investing in solar panel production, concerns remain over the rising cost of renewable infrastructure.

The Australian Energy Market Operator (AEMO) has flagged major cost increases in its latest 2025 Electricity Network Options Report.

According to the report, some infrastructure projects have doubled in cost since 2023, including New South Wales’ first Renewable Energy Zone—now expected to cost $5.5 billion, up from $650 million in 2021.

The Australian Energy Regulator (AER) has signed off on the revised budget but warned that a significant portion of the cost will be passed on to consumers.

Operational costs alone are forecast at $1.5 billion over the first five years (2025–29), to be recovered through quarterly customer contributions, alongside access fees paid by energy generators.