Australian businesses, farms, and community organisations are set to benefit from significant upfront cost reductions on larger solar photovoltaic (PV) systems, following the expansion of the federal Small-scale Renewable Energy Scheme (SRES). Effective from 1 October 2026, the scheme now includes systems with a capacity between 100 kW and 1 MW, a move expected to reduce installation costs by approximately 20%.
This policy adjustment, enacted through amendments to the Renewable Energy (Electricity) Regulations 2001, addresses what has been termed the ‘missing middle’ in Australia’s solar incentives, previously limiting SRES eligibility to systems under 100 kW. The change means that a broader range of commercial, industrial, and agricultural facilities can now access the financial benefits of Small-scale Technology Certificates (STCs), previously only available to smaller installations.
Upfront Savings for Mid-Scale Solar Installations
The core benefit of the SRES expansion is the provision of STCs, which translate into an upfront discount on the cost of installing eligible solar PV systems. This discount is estimated to be around 20% of the total installation cost for systems between 100 kW and 1 MW. This significant saving is designed to accelerate the uptake of renewable energy in sectors that have historically faced higher upfront barriers for larger-scale rooftop solar. Minister for Climate Change and Energy, Chris Bowen, emphasised the intent behind the reform:
“We’re putting more rooftops to work and helping businesses, farms and community organisations cut energy costs by slashing the cost of installing medium-sized solar systems by around 20 per cent.”
Unlike smaller residential systems where the STC deeming period declines annually towards the scheme’s scheduled end in 2030, eligible mid-scale solar systems (100 kW to 1 MW) will benefit from a fixed 5-year deeming period. This provides greater certainty for businesses planning their investment and return on capital. Participants can choose between applying for STCs or participating in the Renewable Electricity Guarantee of Origin (REGO) scheme, though eligibility under one may affect eligibility under the other.
Eligibility and Application Timeline
For systems to qualify under the expanded SRES, they must meet stringent eligibility criteria. This includes ensuring panels, batteries, or inverters are listed on the Clean Energy Council (CEC) list of approved components and adhering to Solar Accreditation Australia (SAA) installation guidelines. Furthermore, systems must comply with Commonwealth, state, and territory planning requirements, electrical safety regulations, and network connection agreements.
While the changes apply to eligible mid-scale solar systems installed from 1 October 2026, applications for STCs under this expanded scheme are not yet open. The Clean Energy Regulator (CER) has stated that applications are expected to commence in mid to late November 2026, allowing time for the necessary systems and processes to be implemented.
Businesses considering a new installation or expansion of an existing system should consult with an accredited solar installer to ensure their project meets all requirements and to prepare for the application window. For guidance on selecting appropriate systems, businesses may refer to resources such as Best Solar Panels in Australia 2026: Get Up to 25% Efficiency & Max. $15,000 in Rebates.
Impact on Australian Energy Landscape
This policy change is expected to drive a significant increase in commercial and industrial solar installations, contributing to Australia’s broader renewable energy targets. The Department of Climate Change, Energy, the Environment and Water (DCCEEW) noted that the SRES has already supported over 4.5 million households and small businesses in installing solar. Expanding this support to larger systems leverages extensive commercial roof space, which has been identified as a significant untapped resource for solar generation.
By reducing the upfront capital outlay, the federal government aims to empower businesses to take greater control of their energy costs, bolster energy security, and reduce their carbon footprint. This aligns with Australia’s commitment to increasing renewable electricity generation and transitioning towards a cleaner energy economy. The Clean Energy Council’s recent report highlighted record installations of rooftop solar and home batteries in the first half of 2026, demonstrating a strong consumer drive for energy independence. This SRES expansion extends similar benefits to the commercial sector, fostering further investment in distributed energy resources. For a broader understanding of available incentives, businesses can consult Your 2026 Guide: Claim Up To $15,000 in Energy Rebates Across Australia.
The move also complements Australia’s recent endorsement of the Global Rooftop Solar Declaration at the 2026 Pacific Pre-COP meeting in Fiji, which aims to double the number of homes with rooftop solar globally by 2030. By making solar more accessible across various scales, Australia is solidifying its position as a global leader in solar adoption and demonstrating a practical approach to achieving ambitious renewable energy goals. The long-term benefits of this expansion include not only direct cost savings for businesses but also increased grid stability and reduced reliance on fossil fuels, contributing to overall lower electricity prices. Businesses should ensure their systems are well-maintained to maximise these benefits, as outlined in guides like Maximise Your Solar Output by 25% in 2026: Your Essential Australian Maintenance Guide.