Australian businesses, farmers, and community organisations can now significantly reduce the upfront cost of installing larger rooftop solar systems, with the Albanese Government’s expanded Small-scale Renewable Energy Scheme (SRES) taking effect from October 1, 2026. The reform is set to cut installation expenses by approximately 20%, translating to potential savings of up to $136,000 for eligible mid-scale solar projects.
This crucial policy change extends the maximum eligible solar system size under the SRES from 100 kilowatts (kW) to 1 megawatt (MW), aiming to unlock substantial commercial roof space for clean energy generation. The move is designed to provide tangible financial relief through lower energy bills and enhance energy security for Australian enterprises, reducing their exposure to volatile international energy markets.
Significant Upfront Savings for Commercial Solar
The expansion of the SRES directly impacts the capital outlay required for businesses to invest in renewable energy. For a typical 250 kW mid-scale solar PV system, the estimated discount under the expanded scheme could be around $68,000. Larger installations, such as a 500 kW system, could see savings reach approximately $136,000.
These reductions are applied through the generation of Small-scale Technology Certificates (STCs), which system owners can sell to recoup a portion of their installation costs. The Clean Energy Regulator (CER) administers the SRES and provides details on eligibility.
“This reform will reduce the upfront cost of installing a mid-scale solar system by around 20 per cent, making it easier for businesses and farmers to invest in cheaper, cleaner energy.” — Minister for Climate Change and Energy Chris Bowen
Minister for Climate Change and Energy, Chris Bowen, emphasised the dual benefits of the expansion, stating that it makes it easier for businesses and farmers to invest in cheaper, cleaner energy while bolstering Australia’s energy security amidst global market volatility.
Boosting Competitiveness and Energy Security
The economic impact for businesses is considerable. A 250 kW solar PV installation, suitable for a medium-sized enterprise like a retailer, could generate approximately 345 MWh of electricity annually, potentially saving around $50,000 in electricity costs each year. For larger industrial energy users, an 850 kW system could produce about 1,173 MWh annually, leading to annual savings of approximately $175,000.
This initiative supports a broad spectrum of commercial operations, from farms and factories to shops and warehouses, in transitioning equipment and operations to electricity. It aligns with broader national efforts to integrate more renewable energy into the grid, which has already seen wholesale electricity prices in the National Electricity Market (NEM) fall by nearly 50% in the June quarter of 2026, driven by a surge in renewable energy output and increased battery storage.
Eligibility and Implementation
To qualify for support under the expanded SRES, mid-scale solar PV systems must adhere to stringent requirements, including installer and product accreditation, compliance with state, territory, and Commonwealth planning regulations, electrical safety standards, and network connection agreements.
Retailers are also playing a role in the evolving energy landscape. While wholesale prices have seen significant reductions, these savings do not always directly translate to customer bills. This underscores the importance for businesses to actively seek out competitive offers and understand available support. You can explore a broader range of available support by checking our guide on Your 2026 Guide: Claim Up To $15,000 in Energy Rebates Across Australia.
To further facilitate the uptake of larger solar systems, the federal department is preparing a rule change request for the Australian Energy Market Commission (AEMC). This request aims to simplify and streamline the process for businesses to connect their new, larger solar installations to the electricity network, addressing a key barrier to commercial solar adoption.
This expansion of the SRES represents a significant step towards greater energy independence and lower operating costs for Australian businesses, marking a tangible benefit from the nation’s ongoing clean energy transition. Businesses are encouraged to consult the Clean Energy Regulator’s website for comprehensive eligibility details and to explore how these savings can be maximised.
Comparing Commercial Solar System Costs and Potential Savings
The following table illustrates the potential cost reduction and annual savings for various mid-scale solar system sizes under the expanded SRES:
| System Size | Estimated Upfront SRES Discount | Estimated Annual Electricity Savings |
|---|---|---|
| 250 kW | Up to ~$68,000 AUD | Up to ~$50,000 AUD |
| 500 kW | Up to ~$136,000 AUD | Up to ~$90,000 AUD (extrapolated) |
| 850 kW | Proportionally higher | Up to ~$175,000 AUD |
Note: Annual electricity savings are estimates based on typical commercial usage and current energy prices. Actual savings may vary based on location, energy consumption patterns, and electricity tariffs.