The NSW Government has announced a further $225 million for its Net Zero Manufacturing Initiative, opening a new round of grants aimed at expanding local manufacturing capacity for renewable energy infrastructure, low-carbon products and emerging clean technologies.
The funding is intended to support businesses that can manufacture products needed for a lower-emissions economy within NSW, while attracting private investment and creating skilled jobs.
Applications opened today, with funding available through three separate grant streams covering clean technology innovation, low-carbon product manufacturing and renewable energy manufacturing.
The latest allocation follows an earlier round of funding that supported more than 40 projects across the state and was credited with creating around 1,000 jobs.
Among those projects was a new solar panel manufacturing facility in the Hunter Valley, alongside initiatives including a renewables manufacturing hub in Western Sydney, production of super high voltage transformers for Renewable Energy Zones, expanded low-carbon housing manufacturing in Orange and battery component technology development in the Illawarra.
Three funding streams open
The new funding round includes $25 million for clean technology innovation projects, with grants of up to $5 million available for pilot and demonstration projects designed to move proven technologies closer to commercial deployment.
A further $100 million has been allocated to low-carbon product manufacturing, supporting commercial-scale facilities producing items such as blended cement, cross-laminated timber and biofuels.
Another $100 million will support renewable manufacturing projects focused on products including wind towers, solar panels, batteries and transmission infrastructure.
For the two manufacturing streams, grants of up to $30 million are available per project, covering up to half of eligible project costs.
The government said successful applicants will be required to match or exceed grant funding with private investment.
According to the government, the first funding round attracted approximately $1.50 in co-investment for every dollar contributed through the program.
Focus on commercial-ready projects
This round places priority on projects that are ready for construction or commercial deployment.
The government said the funding is intended to help businesses expand local production while supporting regional economies and creating opportunities for skilled workers.
Minister for Climate Change and Energy Penny Sharpe said the program had already delivered employment outcomes and would support further manufacturing growth.
“Our investment in low-carbon manufacturing has already supported the creation of around 1,000 jobs, and this boost will power the next wave of industry and opportunity across NSW.”
She also said, “This additional funding will help ensure NSW does not just import technology, but builds more of it locally to benefit communities and workers.”
Industry groups back manufacturing support
Business NSW Chief Executive Officer Daniel Hunter said the funding would assist manufacturers looking to expand production and pursue new industrial opportunities.
He said businesses across NSW were producing a wide range of products, including clothing, modular housing and medical technology, and that the program would support future investment decisions.
Australian Manufacturing Workers’ Union NSW/ACT State Secretary Brad Pidgeon said manufacturing workers already had the skills required to produce renewable energy equipment and lower-emissions building materials.
“NSW manufacturing workers have the skills and experience to build the products needed for the future, from renewable energy components to low-carbon building materials.”
Application dates announced
The clean technology innovation grant stream will remain open until 8 September 2026.
Applications for the low-carbon product manufacturing grant and renewable manufacturing grant will close on 25 August 2026.
The NSW Government will also host an information webinar on 22 June 2026 to explain eligibility requirements, application processes and the available funding streams. Go here to register for the webinar.
For the Hunter region, where manufacturing, energy infrastructure and emerging clean technology industries continue to develop alongside projects such as the Hunter Valley solar panel facility, the new funding round presents another opportunity for businesses to secure support for commercial-scale production within NSW.
