Survival in Australia’s Renewal Energy Manufacturing Sector

Survival in Australia’s Renewal Energy Manufacturing Sector

December 12, 2025

Taya Foxman

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Published

12 December 2025

Category

Commercial

Australia has a wealth of natural resources we supply to countries such as China and the USA needed in the renewable energy sector with considerable expertise in the solar and wind power sectors.

However, the sector battles for a lack of Government support and delayed funding in trying to compete with overseas manufacturers and imports.

A case on point is Energy Renaissance, a business that operated in New South Wales which was highly regarded in the renewable energy sector, but recently entered administration due to a failure to fund and delays in funding by the Government.

The CEO of Energy Renaissance stated that despite its pleas for financial help, it had drowned in bureaucracy and delays and a lack of funding which impacted on the company’s ability to continue to trade.

The company failed in its application for funding from the National Reconstruction Fund (NRF) for $18 million. The request was declined with the NRF advising the company to “come back once they had bigger orders”. So much for supporting small and creative businesses in a growing sector!

At the same time the Australian Renewable Energy Agency (ARENA) announced a $500 million initiative to support and grow Australian battery manufacturers, but it was too late for Energy Renaissance, which had already closed its doors.

Key issues for the sector

The key issues facing the sector are the delays in release of Government funding which can take over a year for ARENA to approve. This puts Australian manufacturers well behind its overseas competitors.

Government support and funding is essential for local manufacturing and help keep it competitive with overseas companies that import cheaper products.

Many government funded projects require a percentage of local content but not when it comes to government projects that require batteries, and this is benefiting foreign companies.

The Government, on one hand, promises to deliver support for the renewable energy sector, but much of it is left to the private sector to fund, while businesses deal with delays and ‘red tape’ to get Government funding in a highly regulated and complex sector.

This also works against the Governments’ own goals to meet its net zero emission goals but importantly it is not helping the local sector compete with the international market.

Sanicki Lawyers New Energy Group

Sanicki Lawyers act for clients in the Renewable Energy Sector in the Solar and EV sectors, having assisted clients with their Power Purchase Agreements (PPA), Solar Installer Agreements and terms and conditions and assisting clients with JV agreements with overseas Solar farm projects and EV battery manufacturers and suppliers.

We can assist with compliance, contracts and other general business support.

Contact Us

If you are looking to start up or grow your New Energy Business, please contact our Commercial Team by phone (03) 9510 9888 or email at:

Robert Toth | Special Counsel | Accredited Commercial Law and Franchise Specialist | Email: robert@sanickilawyers.com.au | Mobile:  0412 673 757