Australian businesses, farms, and community organisations are set to unlock substantial upfront savings on solar installations, with the federal government’s Small-scale Renewable Energy Scheme (SRES) officially expanding its eligibility criteria to systems up to 1 megawatt (MW) from October 1, 2026. This tenfold increase from the previous 100-kilowatt (kW) cap marks a pivotal shift, designed to accelerate the uptake of mid-scale solar across the nation and significantly reduce operational costs for eligible entities.
The expanded SRES now allows larger commercial, industrial, and agricultural solar photovoltaic (PV) systems to generate Small-scale Technology Certificates (STCs), which translate directly into an upfront discount on installation costs. Previously, systems over 100 kW were only eligible for the Large-scale Renewable Energy Target (LRET), a more complex and less immediate incentive mechanism. The Clean Energy Regulator (CER) has confirmed that these changes are now legislated under the Renewable Energy (Electricity) Regulations 2001.
Significant Savings for Mid-Scale Solar
Under the new rules, businesses can anticipate considerable financial benefits. Government estimates suggest the expanded scheme could reduce installation costs for eligible solar PV systems by approximately 20%. For instance, a 250 kW rooftop solar system could receive an upfront incentive of around A$68,000, while an 850 kW system might see savings in the order of A$232,000. These figures are based on the value of STCs, which were trading flat at around A$39.85 as of early October 2026.
“The expanded scheme is expected to reduce the installation costs of solar PV systems for commercial, industrial and agricultural buildings by around 20%.”
Crucially, eligible mid-scale solar systems (100 kW to 1 MW) will benefit from a fixed five-year deeming period for STCs. This offers greater certainty for financial planning compared to the declining deeming period applied to smaller residential systems, ensuring a predictable return on investment for businesses. The Department of Climate Change, Energy, the Environment and Water (DCCEEW) highlights that this policy will help more businesses transition from fossil fuels, lower electricity costs, and tap into Australia’s largely unexploited commercial rooftop solar market.
Who Benefits from the Expanded SRES?
The expansion specifically targets properties with significant roof space or land suitable for larger solar arrays, including:
- Warehouses and Logistics Centres
- Farms and Agricultural Operations
- Schools and Educational Institutions
- Hospitals and Healthcare Facilities
- Community Facilities
- Commercial and Industrial Premises
This move acknowledges the immense untapped potential of these sectors. Australia currently boasts approximately 22 GW of residential rooftop solar, yet commercial and industrial installations stand at only 5.6 GW. Experts estimate the technical potential of commercial, industrial, and agricultural rooftops could exceed 80 GW, making this policy a critical enabler for scaling up clean energy adoption.
Implementation Timeline and Next Steps
While the expanded eligibility came into effect on October 1, 2026, the Clean Energy Regulator anticipates that the application process for STCs under the new mid-scale solar rules will not open until mid-to-late November 2026. This delay allows the CER to implement the necessary systems and processes to manage the increased scope of the scheme. Businesses considering installations in this new 100 kW to 1 MW bracket should consult with Clean Energy Council (CEC) accredited installers to understand specific eligibility requirements and to prepare documentation for when applications open.
Furthermore, the government has tasked the Australian Energy Market Commission (AEMC) with reviewing rule changes to expedite the connection approval process for commercial and industrial solar projects. This aims to reduce existing barriers and accelerate grid integration for larger-scale systems.
Maximising Your Commercial Solar Investment
For businesses, the expanded SRES offers a compelling opportunity to not only reduce carbon footprints but also to gain significant financial advantages through lower operating costs. Beyond the upfront STC discount, ongoing savings from self-generated electricity can be substantial, particularly given fluctuating wholesale electricity prices. Retailers can also factor in other incentives, such as participation in Virtual Power Plant (VPP) schemes, which can offer additional payments or credits for exporting excess energy to the grid when demand is high.
Businesses looking to leverage this expanded rebate should engage with accredited solar providers who can accurately calculate STC entitlements and manage the application process. Understanding the full suite of available support, from federal STC discounts to state-specific programs and energy efficiency upgrades, is crucial for maximising long-term savings. For a broader overview of national energy incentives, refer to our comprehensive guide: Your 2026 Guide: Claim Up To $15,000 in Energy Rebates Across Australia. Businesses also considering a holistic approach to energy transition can find valuable insights in our article on Electrify Your Home in 2026: Real Costs, Rebates & Savings Up to $15,000+.
This policy change underscores Australia’s commitment to its renewable energy targets, leveraging the untapped potential of commercial and industrial rooftops to build a more resilient and cost-effective energy future.