The Australian Renewable Energy Agency (ARENA) has unveiled a new AUD 60 million ($39.2 million) R&D funding round as part of its efforts to achieve ultra-low-cost solar. 

It aims to reduce the installed cost of solar to AUD 0.30/W and bring the levelized cost of electricity (LCOE) below AUD 20/MWh for utility-scale solar PV by 2030 to achieve the ultra-low-cost solar ambition.

The funding amount under the latest round is equally divided into 2 streams with 3 focus areas each. Stream 1 of cells and modules will focus on increasing efficiency, cost reduction, and improving stability. Balance of systems and operation and maintenance under stream 2 will seek a reduction of balance of system (BOS) deployment costs, operations and maintenance costs, and other avenues to reduce LCOE or innovation to increase yield.

This competitive round has been launched under the agency’s Research, Development and Commercialisation (RDC) Program. It seeks proposals for projects that have achieved a Technology Readiness Level of at least 3 at the time of applying. 

ARENA says this funding round is open to universities, research groups, startups, and entrepreneurs that are working in this direction.

“Our ultra low-cost vision recognises that solar must be cheaper still to support and enable the renewable energy transition, especially if we are to decarbonise 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,” said ARENA CEO Darren Miller.  

The funding round, announced on July 9, 2025, is now open on ARENA’s website. The expressions of interest (EOI) will be opened on August 5, 2025, and the same can be submitted at the latest by October 21, 2025.   

ARENA says it has provided over AUD 388 million ($253 million) to solar PV R&D, and an additional AUD 104 million ($68 million) to support the Australian Centre for Advanced Photovoltaics (ACAP).