The research will be undertaken by United States-Australia Solar Energy Collaboration (USASEC) that was launched in 2010 and managed by Newcastle-based Australian Solar Institute (ASI).
The Australian government will make use of the unused $50m that remain with the USASEC from an earlier contribution besides providing additional funds to the tune of $38m.
Commenting on the initiative Ferguson remarked that the funds will accelerate solar power development in spheres where working alone was not feasible.
"Projects that will receive money under the plan include the development of an Australian Solar Energy Forecasting System that will improve the integration of solar energy generation, and a device that simplifies using solar energy for hybrid fossil-fuel applications," Ferguson added.
The University of New South Wales will receive $33m to lead a research into the development of cost efficient PV technologies, to be supported by commercial partners such as BlueScope Steel and Suntech.
Australian Solar Thermal Research Initiative, meanwhile, garner $35m to help the country become a leader in Concentrating Solar Power technologies.
