Australian businesses, farms, and larger community facilities are set to unlock significant financial incentives for solar energy installations, following a landmark legislative amendment by the Clean Energy Regulator (CER). Effective October 1, 2026, the Small-scale Renewable Energy Scheme (SRES) will expand its eligibility criteria to include solar photovoltaic (PV) systems up to 1 megawatt (MW), a substantial increase from the previous 100 kilowatt (kW) cap. This change, legislated on September 17, 2026, is poised to drive greater uptake of mid-scale solar across the commercial, industrial, and agricultural sectors.
The amendment means that businesses installing larger solar systems, previously excluded from the SRES, can now generate Small-scale Technology Certificates (STCs) for their installations. These STCs translate into an upfront discount on the cost of the solar system, making larger projects significantly more viable and accelerating Australia’s transition to cleaner energy. Applications for eligible systems installed from October 1, 2026, are expected to open in mid-to-late November 2026.
Unlocking New Opportunities for Commercial Solar
For years, businesses requiring solar systems larger than 100 kW found themselves in a ‘missing middle’ – too large for the SRES but often not large enough to easily navigate the more complex processes of the Large-scale Renewable Energy Target (LRET). This regulatory gap has limited the financial attractiveness of mid-scale solar projects, despite their strong economic fundamentals. The CER’s decision directly addresses this, extending the benefits of the SRES to a broader range of enterprises.
“The expansion of the Small-scale Renewable Energy Scheme to include systems up to 1 MW is a critical step in supporting increased investment across the commercial, industrial and agricultural sectors. It removes a significant barrier and will accelerate clean energy adoption for thousands of Australian businesses.” - Clean Energy Regulator statement, September 17, 2026.
This policy shift is particularly timely given Australia’s rapid advancements in renewable energy. Just last week, on September 19, 2026, Australia’s National Electricity Market (NEM) recorded a new milestone, with renewables supplying over 80% of electricity demand for a 30-minute interval, predominantly driven by rooftop solar. This demonstrates the grid’s increasing capacity to integrate distributed generation, making the case for more commercial solar even stronger.
How the Expanded SRES Works for Businesses
The SRES operates by assigning a number of STCs to an eligible solar PV system based on its size, location, and the deeming period (which extends to 2030). Each STC represents one megawatt-hour (MWh) of eligible renewable electricity generation. These certificates have a market value, typically traded between AUD $38 and AUD $40 per certificate, which installers typically factor into the upfront system cost as a discount.
With the cap now at 1 MW, a much larger proportion of commercial and industrial installations will qualify for this valuable incentive. For example, a 500 kW system installed in Sydney (Zone 3) in 2026 would be deemed for 4 years, generating a substantial number of STCs. This translates directly into a lower net installation cost for the business.
Here’s a simplified illustration of potential STC generation for various mid-scale system sizes in Zone 3 (e.g., Sydney, Brisbane, Perth) for installations in 2026:
| System Size (kW) | Deeming Period (Years) | Annual STCs per kW | Total STCs (approx.) | Est. Rebate Value (AUD $40/STC) |
|---|---|---|---|---|
| 100 kW | 4 | 1.382 | 553 | $22,120 |
| 250 kW | 4 | 1.382 | 1,382 | $55,280 |
| 500 kW | 4 | 1.382 | 2,764 | $110,560 |
| 1,000 kW (1 MW) | 4 | 1.382 | 5,528 | $221,120 |
Note: STC calculation is complex and depends on exact location (solar zone), installation date, and deeming period. These figures are illustrative and based on a typical Zone 3 deeming factor for 2026. Actual values may vary based on market conditions and specific project details. Businesses should consult accredited installers for precise quotes and STC calculations.
Broader Benefits for the Australian Economy
Beyond direct financial savings for businesses, the expansion of the SRES for mid-scale solar is expected to stimulate investment in the solar supply chain, create local jobs in installation and maintenance, and contribute to Australia’s renewable energy targets. The Clean Energy Regulator noted in its Q2 2026 report (published September 1, 2026) that while rooftop solar installations and household battery uptake hit records, mid-scale projects had previously lagged. This legislative change is designed to bridge that gap.
Businesses considering a solar upgrade now have a compelling financial incentive to install larger systems, improving their energy independence and reducing operational costs. This complements other government support mechanisms designed to encourage clean energy adoption. For a comprehensive overview of available incentives, businesses can refer to guides like Your 2026 Guide: Claim Up To $15,000 in Energy Rebates Across Australia.
Furthermore, the increased uptake of mid-scale solar will alleviate pressure on the grid, especially during peak demand periods, and contribute to lower wholesale electricity prices. This move aligns with broader efforts to electrify homes and businesses, reducing reliance on fossil fuels. Businesses exploring significant energy transitions might also find value in resources like Electrify Your Home in 2026: Real Costs, Rebates & Savings Up to $15,000+ for broader electrification strategies.
As the renewable energy landscape evolves, staying informed on panel technology, such as the differences between N-Type vs. P-Type Solar Panels in Australia 2026: Unlock $1,000+ Extra Savings Annually, can further optimise system performance and long-term savings for these larger installations.
The CER’s decision marks a significant step towards a more robust and decentralised clean energy system for Australia, empowering more businesses to participate in the energy transition.