Anthony Albanese to spruik $1billion boost to help Australia make more solar panels in NSW Hunter Valley

Anthony Albanese will announce a $1billion program to increase the number of solar panels made in Australia.

The Prime Minister will travel to the Hunter Valley, the heartland of NSW coal mining for Thursday's announcement.

While a third of Australian households have solar panels, which is the highest rate in the world, just one per cent of them are made Down Under.

The government's new Solar SunShot program will give production subsidies and grants to increase Australia's role in making solar panels for the domestic and export markets. 

The site of the closed Liddell power station near Muswellbrook will be redeveloped as a solar manufacturing hub.

Australia should not be 'at the end of the supply chain' when it comes to essential products such as solar panels,' Mr Albanese said.

'What we're doing now is seizing that opportunity to create jobs to ensure that the Hunter continues to thrive,' he told ABC Radio Newcastle.

The billion-dollar commitment would be used on the transformation of Liddell.

'This is the largest announcement of its type that has been made in Australia's history because the Liddell site, I can't think of one that is more important,' the prime minister added

'Liddell, of course, helped to power NSW for a long period of time in the last century and into this one.

'Now, the production that will occur there will help power NSW and Australia, and potentially have export potential as well.'

The new program will ensure coal mining communities such as Muswellbrook and Singleton don't fall behind economically  as mines and power stations shut down in the decades to come.

'There are other planned closures in the future ... (it's important) that we look for opportunities that workers continue to be employed in alternative, high-paying secure jobs,' Mr Albanese added.

'That is what we are about using industry policy, particularly when it comes to manufacturing, because we want a future made here in Australia.'

The Solar SunShot program will be developed alongside the Australian Renewable Energy Agency (ARENA), which manages a hydrogen investment program.

ARENA will also examine the entire supply chain in the solar manufacturing space and how the government can provide grants to boost domestic solar-technology innovation.

The prime minister told Triple M Newcastle that he expected jobs to be created by the government's next term if it wins the next election in 2025.

'ARENA ... will work with the company to make sure it is up and running to make sure this is up because we know the benefits of this will be substantial,' Mr Albanese said

'So I would expect there to be jobs there, during our next term, which will start of course in 2025.'