Australian businesses are set to unlock significant financial incentives for larger solar photovoltaic (PV) installations, with a federal policy change expanding eligibility under the Small-scale Renewable Energy Scheme (SRES). The Clean Energy Regulator (CER) announced on September 17, 2026, that amendments to the Renewable Energy (Electricity) Regulations 2011 will extend SRES eligibility to solar PV systems up to 1 megawatt (MW) in capacity, a substantial increase from the previous 100-kilowatt (kW) limit.

This pivotal regulatory shift, which takes effect from October 1, 2026, means commercial and industrial properties installing larger solar systems will now be able to generate valuable Small-scale Technology Certificates (STCs). These certificates can translate into an upfront discount on installation costs, potentially saving eligible businesses hundreds of thousands of dollars. Applications for the expanded scheme are expected to open in mid to late November 2026.

Unpacking the Expanded SRES Eligibility

The SRES is a federal government initiative designed to encourage the uptake of small-scale renewable energy systems. Under the scheme, eligible installations create STCs, with one STC generally representing one megawatt-hour (MWh) of renewable electricity deemed to be generated over the system’s lifetime (up to 10 years for commercial systems). These STCs can then be sold, typically by the solar installer, reducing the out-of-pocket cost for the system owner.

Previously, the scheme was limited to systems with a maximum capacity of 100 kW. This new amendment broadens the scope considerably, allowing businesses with substantial energy demands and roof space to leverage federal support for installations up to 1 MW. For a 1 MW solar system (1000 kW) installed in, for example, a Zone 3 area (which includes major cities like Sydney and Melbourne) and deemed for a 10-year period, the system would generate approximately 13,820 STCs. With current STC market prices hovering around AUD $39, this could equate to an upfront benefit of over AUD $538,000.

“The Renewable Energy (Electricity) Regulations 2011 have been amended to expand eligibility for solar PV systems under the Small-scale Renewable Energy Scheme from 100 kW to 1 MW. These changes will apply to mid-scale solar installed from 1 October 2026.”

This significant financial incentive aims to accelerate the adoption of larger commercial solar installations, providing a much-needed boost to businesses grappling with rising electricity costs. The move aligns with broader national efforts to integrate more renewable energy into the grid, reduce carbon emissions, and enhance energy independence.

Impact on Australian Businesses and the Energy Market

The expansion of the SRES to include systems up to 1 MW is expected to have several key impacts:

  • Reduced Capital Costs: The substantial STC value will significantly lower the initial investment barrier for businesses considering large-scale solar. This makes renewable energy projects more financially viable and attractive.
  • Increased Renewable Energy Uptake: By making larger systems more affordable, the policy is likely to drive a surge in commercial and industrial solar installations, contributing directly to Australia’s renewable energy targets.
  • Energy Bill Stability: Businesses that generate a larger portion of their own electricity can better insulate themselves from volatile wholesale electricity prices and rising retail rates.
  • Grid Modernisation: Increased distributed generation from commercial solar can help reduce demand on the grid during peak times, contributing to overall grid stability and potentially deferring costly network upgrades. This also encourages the use of advanced energy management systems like smart meters and time-of-use tariffs to maximise savings. Smart Meters & ToU Tariffs: Slash Your 2026 Winter Electricity Bill by $229+
  • Job Creation: The increased demand for larger solar installations will likely create more jobs in the renewable energy sector, from manufacturing and installation to maintenance and project development.

While the SRES provides a robust federal incentive, businesses should also investigate other state-specific rebates and grants that may be available to further reduce costs. Your 2026 Guide: Claim Up To $15,000 in Energy Rebates Across Australia

Businesses interested in capitalising on this expanded eligibility should begin preparing now. While applications open in November, understanding the requirements, assessing site suitability, and engaging with accredited solar installers are crucial first steps. Key considerations include:

  • System Sizing: Determining the optimal system size (up to 1 MW) based on energy consumption patterns, available roof or land area, and future energy needs.
  • Panel Technology: Researching the latest solar panel technologies, such as N-Type vs. P-Type, which can offer different efficiencies and long-term performance benefits. N-Type vs. P-Type Solar Panels in Australia 2026: Unlock $1,000+ Extra Savings Annually
  • Accredited Installers: Ensuring chosen installers are Clean Energy Council (CEC) accredited and experienced in commercial-scale projects.
  • Financial Modelling: Calculating the precise STC benefit and overall return on investment, factoring in electricity bill savings and any other applicable incentives.

This policy update represents a significant opportunity for Australian businesses to invest in renewable energy, reduce operational costs, and contribute to the nation’s clean energy transition. The CER’s move to broaden the SRES reflects an ongoing commitment to making clean energy more accessible and financially rewarding for a wider range of Australian enterprises.