Solar SunShot will help Australia capture more of the global solar manufacturing supply chain through support, including production subsidies and grants.

One in three Australian households presently have solar panels - the highest uptake in the world - but only 1 per cent are made in Australia.

The Solar SunShot program will help ensure more solar panels are made in Australia, including in the Hunter Region.

"Australia should not be the last link in a global supply chain built on an Australian invention," Mr Albanese said.

"I want a future made in Australia. And I want a future made in our regions. Places like the Hunter that have powered our nation for more than a century will power our future."

The government's investment in the Solar SunShot program follows the introduction of legislation on Wednesday to establish the Net Zero Economy Authority, which will help accelerate clean energy investment in Australia's regions.

Australia has every metal and critical mineral necessary to be a central player in the net zero transformation, and a proven track record as a reliable energy producer and exporter.

"We can also invest in strategic manufacturing capability, particularly in components critical to the energy and economic transition, like solar panels," Mr Albanese said.

"Historically, Australia has been good at going from the mining pit to port, and long may this continue. But the Australian Government will also invest in the path from pit to panels and capture more value for our economy and workforce."

Australian researchers played a crucial role in the invention of modern solar panels. Climate Change and Energy Minister Chris Bowen said the Solar Sunshot program would now create Australian jobs to help make them.

"We know that the world's climate emergency is Australia's jobs opportunity, $1 billion to support Australian manufacturing in solar technology will help seize that opportunity," he said.

NSW Minister for Climate Change and Energy Penny Sharpe said the program would see NSW households put locally made solar panels on their roofs to deliver long term energy bill savings and a strong domestic renewable manufacturing sector.

"It's great to be able to align NSW and Commonwealth funding to support clean energy manufacturing, with this fund bolstering our $275 million investment in Net Zero Manufacturing that's currently open for NSW innovators and businesses," she said.

In parallel with Solar Sunshot, the NSW Government is delivering the NSW Net Zero Manufacturing Initiative. The $275 million first round is now open to support workers, small businesses, manufacturers and innovators to take advantage of the transformation of the energy grid.

In the second round, the government will work with industry to leverage government procurement to offer offtake agreements to local manufacturers of renewable products and low carbon materials.

The initiatives will allow regions that have traditionally powered Australia to continue to prosper in the net zero economy by deepening their industrial base.

The $1 billion federal investment in the Solar Sunshot program builds on more than $40 billion of investment committed by the Australian Government to make Australia a renewable energy superpower.

The Australian Renewable Energy Agency (ARENA) consults with industry to design and deliver the program. ARENA will look at the entire supply chain from ingots and wafers to cells, module assembly, and related components, including solar glass, inverters, advanced deployment technology and solar innovation.

It complements other processes underway such as the Hydrogen Headstart program also administered by ARENA.

Hunter Workers secretary Leigh Sheers said the Hunter had the potential to become the epicentre for advanced manufacturing and renewable energy.

"From wind, hydrogen, battery storage and solar, today's announcement is the next step in making this a reality. The opportunity to establish generational secure well paid high skilled Union Jobs from offshore through to a regional manufacturing supply chain. From the Port to the Valley is a once in a lifetime opportunity for our region," he said

AMWU National Secretary Steve Murphy said the announcement was a significant achievement and a major step forward in the journey toward Australia's renewable energy future.

The Australian Manufacturing Workers Union welcomed the federal government's announcement that it will invest $1 billion in building Australia's solar energy manufacturing supply chain.

"On behalf of our members and all Australians, our Union has consistently advocated for investment in our renewable energy manufacturing sector through commitments such as these and we are pleased to see this come to fruition," AMWU National Secretary Steve Murphy said.

"This investment through the Solar Sunshot program will help create tens of thousands of secure, high-quality, and highly skilled jobs in regional areas and generate billions more in investment and economic growth.

"The renewable energy products made here will also assist Australian families to reduce their energy bills and help our nation fulfil its commitment to net zero emissions by 2050."