Australian businesses, farms, and community organisations are now eligible for significant upfront cost reductions on larger rooftop solar installations, following a tenfold expansion of the Small-scale Renewable Energy Scheme (SRES). Effective from 1 October 2026, eligible solar photovoltaic (PV) systems up to 1 megawatt (MW) can now access Small-scale Technology Certificates (STCs), a mechanism previously capped at 100 kilowatts (kW) for solar PV. This policy adjustment by the Federal Government is set to make large-scale commercial solar more financially viable across the country.

The Tenfold Expansion: What It Means for Commercial Solar

Historically, solar PV systems exceeding 100kW were only eligible for Large-scale Generation Certificates (LGCs) under the Large-scale Renewable Energy Target (LRET). The LGC scheme, while supporting major renewable projects, often presented greater administrative complexity and longer payback periods, making it less attractive for many mid-scale commercial installations. The recent amendment to the Renewable Energy (Electricity) Regulations 2001 shifts this dynamic, bringing systems between 100kW and 1MW into the more accessible SRES framework.

This expansion is a direct response to a recognised ‘missing middle’ in Australia’s solar uptake, aiming to incentivise the widespread installation of solar on large commercial and industrial rooftops. The Clean Energy Regulator (CER), which administers the SRES, confirmed these changes apply to eligible mid-scale solar systems installed from 1 October 2026.

Significant Upfront Cost Reductions

The primary benefit of this SRES expansion is the projected reduction in upfront installation costs for businesses. The Federal Government estimates this policy change could reduce the upfront cost of eligible mid-scale solar installations by approximately 20 per cent.

STCs are a financial incentive where each certificate represents one megawatt-hour (MWh) of renewable electricity deemed to be generated or displaced by an eligible system over its lifetime. When a business installs an eligible system, they generate STCs, which can then be assigned to an accredited solar installer in return for an upfront discount on the system’s purchase and installation price. This mechanism directly lowers the capital outlay required, accelerating the return on investment for businesses.

A key feature for these newly eligible mid-scale solar systems (100kW to 1MW) is a fixed five-year deeming period for STC creation. This provides certainty for businesses calculating their projected savings, unlike the annually declining deeming period for smaller residential systems, which phases down until the scheme’s scheduled end in 2030.

“We’ve seen what rooftop solar can do for household bills. We want more businesses to get those benefits too, from farms and factories to shops and warehouses.” — Minister for Climate Change and Energy Chris Bowen

Who Stands to Benefit?

The expanded SRES is specifically designed to support entities with substantial roof space and high daytime electricity demand. This includes a broad range of commercial and industrial operations such as:

  • Warehouses and Logistics Centres
  • Manufacturing Facilities and Factories
  • Agricultural Operations and Farms
  • Schools and Educational Institutions
  • Hospitals and Healthcare Facilities
  • Large Retail Outlets and Shopping Centres
  • Community Facilities and Sporting Clubs

For many of these organisations, a 100kW system was often insufficient to meet their energy needs, while a full LGC-eligible project over 1MW was too large or complex. The 100kW to 1MW bracket fills this gap, enabling a wider array of businesses to harness solar power efficiently and cost-effectively.

While the expanded eligibility took effect on 1 October 2026, the Clean Energy Regulator has advised that applications for STCs for mid-scale systems will not open until mid-to-late November 2026. This delay is to allow time for the necessary systems and processes to be implemented. Businesses are encouraged to begin planning now, but formal applications can only be submitted once the portal is operational.

Businesses considering a solar PV system in the 100kW to 1MW range now have a critical choice: either apply for the upfront financial benefit through STCs under the SRES or operate as an accredited power station under the LRET and earn LGCs. The CER advises participants to carefully consider which scheme best suits their circumstances, as certificate eligibility under one scheme may affect eligibility under another.

Engaging with an experienced and accredited solar retailer or installer is crucial. They can assess your specific energy needs, design a compliant system, and guide you through the application process to ensure you maximise your eligible federal incentives. For more information on available support, consider reviewing guides like Your 2026 Guide: Claim Up To $15,000 in Energy Rebates Across Australia.

This policy shift underscores the Federal Government’s commitment to accelerating Australia’s transition to a renewable energy economy, extending the proven benefits of rooftop solar beyond residential homes to a vast commercial and industrial sector. As businesses look to reduce operating costs and improve their environmental footprint, this expanded rebate offers a timely and substantial incentive. For those looking at panel technology, understanding options like N-Type vs. P-Type Solar Panels in Australia 2026: Unlock $1,000+ Extra Savings Annually can further optimise system performance and savings.