Green Lights Ahead: How ARENA Can Fund Your Path to a Sustainable Future

This grant update provides an overview of the top current and upcoming sustainability focused federal grant opportunities administered by ARENA.

Australian Renewable Energy Agency (ARENA)

ARENA is a federal government agency established in 2012 to accelerate Australia’s transition to net-zero. Its purpose is to support improvements in the competitiveness and supply of renewable energy, and the uptake of energy efficiency and electrification, by providing financial assistance to accelerate innovation that benefits all Australians and facilitates the achievement of Australia’s greenhouse gas emissions targets.

Since 2012, ARENA have supported 663 projects with $2.25 billion in grant funding for Australia’s renewable energy industry and was recently boosted by an addition $3.2bn in federal funding via the Future Made in Australia policy with a specific focus on commercialisation and deployment of innovative technology.

As a result, ARENA has a number of current and upcoming opportunities with significant funding to fasttrack innovation in sustainable and renewable energy.

CURRENT

• Battery Breakthrough Initiative

  The objective of the Battery Breakthrough Initiative (BBI) is to contribute to Australia’s battery manufacturing capability and commercialise battery manufacturing processes and technologies that contribute to emission reduction.

  The BBI Focus Areas that will drive funding decisions and the scope of funded projects under this scheme are;

  • Active materials

  • Battery cell manufacturing

  • Battery pack assembly

Funding available: $2M - $200M per project
Status: open until funds exhausted ($500M total funding available)

• Solar Sunshot Program

  The Solar Sunshot Program is a $1bn initiative aiming to support innovative solar photovoltaic (PV) manufacturing facilities in Australia. Its primary goal is to bolster Australia's PV manufacturing capabilities and enhance the resilience of the solar supply chain. By supporting the commercialisation of local solar PV innovations, the program aims to reduce reliance on imports and position Australia as a leader in renewable energy technology.

  The currently open component of the Solar Sunshot Program is Round 1B – an allocation of $50 million for feasibility and engineering studies related to solar PV manufacturing projects.

  Funding available: $1M - $5M per project
  Status: Round 1B applications due 12 November 2025

• Ultra Low-Cost Solar PV Research, Development and Commercialisation.

  Aimed at specifically supporting R&D and commercialisation of Australian solar PV innovation, this program has allocated $60M to push solar to ultra-low cost levels (<$20/MWh).

  The programs focus areas are across two streams; Cells and Modules (increasing efficiency, reducing cost and improving stability) and Balance of Systems, Operations and Maintenance.

  Funding available: $3.5M - $10M for Stream 1 (Cells and Modules) and $2M-$10M for Stream 2 (Balance of Systems, Operations and Maintenance)
  Status: Expressions of interest due 21 October 2025

UPCOMING

• Future Made in Australia Innovation Fund

  The Future Made in Australia Innovation Fund is a major initiative aimed at accelerating the development and deployment of renewable energy and low-emission technologies. With a total commitment of $1.5 billion, the fund is focused on supporting pre-commercial innovation and demonstration projects in sectors such as Clean Energy Technology Manufacturing, Green Metals, and Low-Carbon Liquid Fuels.

  While specific grant amounts have not been detailed, the fund’s substantial allocation highlights the government’s support for large-scale, transformative projects in clean energy and technology. This program is expected to open in the second half of 2025.

Staying Grant Ready

Navigating Australia’s competitive funding landscape may seem challenging, but it presents substantial opportunities for businesses across all sectors and stages of growth. By integrating a well-defined grant strategy with your R&D tax planning you can build a robust, long-term approach to non-dilutive funding that supports both innovation and business expansion.

Staying “grant ready” through proactive planning, staying informed about funding trends and maintaining up-to-date documentation positions your business to act swiftly and effectively when new grant opportunities emerge. We break this down further in our guide to Positioning Your Business for Grant Funding Success.

If you would like to talk more about how we can help you foster your ideas, please don’t hesitate to reach out.