Ultra low-cost solar need speed and scale: ARENA

The Australian Renewable Energy Agency (ARENA) said while solar technologies are improving, the speed and scale of delivering large projects are now the key risks to achieving Australia's ambitions for ultra low-cost solar.

The agency argues that ultra low-cost solar represents a leap forward in cost and performance beyond today's solar technologies, delivering cheaper renewable electricity that can unlock new, more energy-intensive industries like green metals and fuels.

"Australia needs a shift in focus towards how solar projects are delivered, not just what is installed," ARENA chief executive Darren Miller said.

"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."

ARENA found that while solar technology continues to improve, the cost of deploying large-scale solar in Australia has not fallen at the same pace.

The advances are being offset by pressures that are slowing deployment, including workforce constraints, a more challenging investment environment, grid connection delays and inflation.

The Ultra Low-Cost Solar White Paper Update report highlights the need for innovation across the full cost of delivering solar projects, including construction, automation, operations, high-efficiency technologies and how projects are designed, built and connected.

Miller said the opportunity presented by 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," 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."

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.