A future powered by ultra low-cost solar is within reach, but without a significant shift in how Australia delivers utility-scale solar projects, the opportunity could slip away.
That’s the key finding of the Australian Renewable Energy Agency’s (ARENA) Ultra Low-Cost Solar White Paper Update, released today.
Ultra low-cost solar represents a leap forward in cost and performance beyond today’s solar technologies, to deliver cheaper renewable electricity that can unlock new, more energy-intensive industries like green metals and fuels.
ARENA CEO Darren Miller said while progress in solar technologies is happening, the speed and scale of delivering large solar projects is now the key risk to reaching Australia’s ambitions for ultra low-cost solar.
“Australia needs a shift in focus towards how solar projects are delivered, not just what is installed,” said Mr Miller.
“Without a change to the approach in how large-scale solar is built, financed and integrated, we risk missing the opportunity to bring costs down fast enough to support the next phase of the energy transition.”
The updated analysis shows that ARENA-supported projects are demonstrating faster, more standardised and safer approaches to deploying large-scale solar and positioning Australia to unlock new industries in the next phase of the energy transition.
However, these advances are being offset by other pressures that are slowing the deployment of this critical technology, including workforce constraints, a more challenging investment environment, grid connection delays and inflation.
ARENA’s portfolio of ultra low-cost solar projects is testing new approaches, particularly in construction, integration and test-bed environments, to help accelerate solar cost reductions this decade. By supporting a growing pipeline of projects, ARENA is moving innovations from concept through to real-world deployment and helping accelerate cost reductions across the sector.
Projects supported by ARENA, including 5B’s modular solar systems, Built Robotics’ automated piling, Nextpower’s deployment technologies, and Luminous Robotics’ installation systems, are reducing build times, improving safety and enabling more efficient delivery at scale.
Mr Miller said the opportunity of ultra low-cost solar remains significant as Australia looks to the next phase of the transition.
“Australia has a strong foundation in solar, but the next phase will depend on how quickly we can translate innovation into industrialisation,” Mr Miller said.
“The progress we’re seeing today gives us confidence in what’s possible, but the next few years will be critical to turning this potential into reality.”
The Ultra Low-Cost Solar White Paper update is available on ARENA’s website.
