Australia needs more solar panel manufacturing facilities to meet its renewable energy goals and to be more resilient to supply chain issues.

Why Australia needs more solar panel manufacturing

Energy security: To reduce reliance on coal and gas, and to protect against geopolitical tensions

Jobs: To create jobs in the solar industry and in regional areas

Supply chain resilience: To diversify the supply chain and avoid supply chain shocks

What the Australian government is doing

The Australian government has announced a $1 billion fund to support solar panel manufacturing. This fund is called the Solar SunShot program.

The program will help Australian companies build local manufacturing capacity.

The program will likely start by using imported cells and module components to make modules in Australia.

Other considerations
Australia should consider diversifying its imports and investing in supply chain resilience.

Australia should balance domestic manufacturing with "friendshoring" efforts to diversify the supply chain.

Australia should consider collaborating with other countries to share expertise and reduce costs.

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