Australian businesses are now eligible for significantly larger federal solar incentives, with the Small-scale Renewable Energy Scheme (SRES) officially expanding its eligibility threshold from 100 kilowatts (kW) to 1 megawatt (MW) for solar photovoltaic (PV) systems. The change, which took effect on October 1, 2026, opens the door for commercial and industrial operators to secure substantial upfront discounts on mid-scale solar installations across the country.

Previously, only solar systems up to 100 kW qualified for Small-scale Technology Certificates (STCs) under the SRES, a key federal incentive. This created a gap for many businesses with larger roof spaces or higher energy demands, whose systems exceeded the 100 kW limit but were not yet considered large-scale utility projects. The amendment to the Renewable Energy (Electricity) Regulations 2001 addresses this by extending STC eligibility to systems up to 1 MW.

“The expansion of SRES eligibility for solar PV from 100 kW to 1 MW for systems installed from 1 October 2026 could provide eligible Victorian businesses with an upfront STC-based discount of around 20%.”

This policy shift is projected to deliver considerable financial benefits, with the Department of Climate Change, Energy, the Environment and Water indicating that the SRES support could provide an upfront discount of around 20% on installation costs for eligible mid-scale systems. For example, a 250 kW system in a Zone 3 location (which includes Melbourne) could see an approximate discount of $68,000, while a 500 kW system might receive around $136,000 off the upfront price.

Who Benefits from the Expanded SRES?

The expanded SRES primarily targets commercial and industrial sectors, including:

  • Warehouses and logistics centres
  • Manufacturing facilities
  • Agricultural operations
  • Schools and community facilities
  • Large retail premises

These entities, which often possess ample roof space and significant daytime energy consumption, stand to gain the most from installing larger solar systems that can now access the federal incentive. The Clean Energy Regulator (CER) defines “mid-scale solar” as commercial and industrial PV systems with capacity above 100 kW and up to 1 MW.

Understanding Small-scale Technology Certificates (STCs)

The SRES operates through the creation of Small-scale Technology Certificates (STCs). When an eligible solar system is installed, STCs are generated based on its deemed future electricity generation. These certificates can then be assigned to an installer or retailer in exchange for an upfront discount on the system’s purchase price. The value of STCs fluctuates with market demand, and the number of certificates generated depends on the system’s capacity, location (STC zone), and the installation year.

For the newly eligible 100 kW to 1 MW band, the Clean Energy Regulator has confirmed that certificates will utilise a fixed five-year deeming period. This differs from smaller residential systems where the deeming period gradually declines each year as the SRES approaches its scheduled conclusion in 2030.

While the new eligibility criteria apply to systems installed from October 1, 2026, the Clean Energy Regulator anticipates that the application process for these larger systems will open in mid-to-late November 2026. Businesses that install eligible systems on or after October 1 will be able to apply retrospectively once the system updates are complete.

Project owners will need to ensure their installations meet all accreditation requirements, including using approved products and installers, and securing appropriate grid connection approvals. Businesses considering these larger systems should consult with accredited solar providers to understand the specific financial benefits and ensure compliance with all regulatory requirements. This change offers a new incentive pathway, giving project owners a choice between upfront STC support and participation in the Renewable Electricity Guarantee of Origin (REGO) framework.

For a broader understanding of available support, businesses may also wish to review general guides on Your 2026 Guide: Claim Up To $15,000 in Energy Rebates Across Australia to identify other potential state-level or targeted programs that could complement federal incentives.

Broader Impact on Australia’s Energy Transition

The expansion of the SRES for mid-scale solar is a strategic move by the federal government to accelerate Australia’s clean energy transition beyond the residential rooftop market, where Australia already boasts one of the highest per capita uptakes globally. By incentivising larger commercial and industrial installations, the policy aims to boost renewable energy generation closer to demand centres, improve grid stability, and potentially lower overall energy costs for businesses, which can then flow through to consumers.

This development is expected to encourage greater investment in on-site generation, reducing reliance on grid electricity during peak demand periods and contributing significantly to Australia’s emissions reduction targets. The move complements ongoing efforts to electrify homes and businesses, contributing to a more resilient and sustainable energy future. For businesses exploring advanced solar technologies, understanding the differences between N-Type vs. P-Type Solar Panels in Australia 2026: Unlock $1,000+ Extra Savings Annually could further optimise system performance and financial returns.

What This Means for Your Business

Businesses planning to install solar PV systems between 100 kW and 1 MW should act now to secure quotes and design systems that maximise the new federal incentives. While the application window for STCs opens in November, installations completed from October 1, 2026, are eligible. This proactive approach ensures businesses can capitalise on the expanded support and realise substantial upfront savings on their clean energy investments.