Australia’s commercial solar rebate is expanding in 2026, potentially making mid-sized solar projects significantly more affordable for businesses, farms and community organisations.
The Australian Government announced on 5 August 2026 that the Small-scale Renewable Energy Scheme (SRES) will be expanded to cover solar photovoltaic systems from above 100 kW up to 1 MW. The government says the change could reduce the upfront cost of a medium-sized commercial solar installation by around 20%. The expanded scheme is expected to apply from 1 October 2026, subject to the necessary regulations being in place.
For businesses considering a 250 kW, 500 kW or other mid-sized commercial solar system, this is a significant change.
The key benefit is that eligible systems in this size range will be able to access Small-scale Technology Certificates (STCs) and receive their value as an upfront discount rather than relying solely on certificates generated over time.
However, the new commercial solar rebate does not mean every large solar project automatically receives a fixed 20% discount. The actual value depends on factors including system size, installation timing, the applicable STC factor and the value of STCs.
Here’s what businesses need to know before making a decision.
Commercial Solar Rebate 2026 at a Glance
Detail
2026 SRES Expansion
Scheme
Small-scale Renewable Energy Scheme (SRES)
Previous maximum system size
100 kW
New maximum system size
1 MW
Eligible mid-scale range
Above 100 kW up to 1 MW
Expected commencement
1 October 2026
Government headline
Around 20% reduction in upfront installation cost
Certificate type
Small-scale Technology Certificates (STCs)
Administered by
Clean Energy Regulator
Status
Announced; regulations still required
Applies to
Eligible new mid-scale solar PV systems
The Australian Government’s current guidance confirms that the SRES expansion is intended to cover systems above 100 kW and no more than 1 MW, with the change subject to regulations.
What Is the New Commercial Solar Rebate?
The commercial solar rebate 2026 is not a completely new standalone rebate.
Instead, the Australian Government is expanding the existing Small-scale Renewable Energy Scheme so that eligible mid-sized solar systems can receive STCs.
The SRES has traditionally supported smaller renewable energy systems, including rooftop solar. Under the expansion, the scheme will extend further into the commercial and industrial market.
The change is designed to address what the government describes as the “missing middle” — businesses that need more than a 100 kW solar system but historically fell between the smaller SRES market and the larger-scale renewable energy framework.
From the proposed commencement date, eligible systems above 100 kW and up to 1 MW will be able to access the SRES.
That could materially change the economics of many commercial solar projects.
What Has Changed From the Old 100 kW Limit?
Previously, the SRES support for rooftop solar stopped at 100 kW.
For a business considering a system larger than that, the financial support structure was very different.
Larger projects generally operated under the Large-scale Renewable Energy Target (LRET) and could generate Large-scale Generation Certificates (LGCs) as the system produced electricity.
That meant the incentive was earned over time rather than being reflected primarily as an upfront discount on the installation invoice.
The 2026 reform changes the position for eligible systems between above 100 kW and 1 MW.
These systems will be able to access STCs, bringing the certificate value into the upfront project economics.
For a business comparing capital expenditure options, the difference between an upfront reduction and a longer-term certificate revenue stream can be substantial.
When Does the Commercial Solar Rebate Start?
The expanded SRES is expected to apply from 1 October 2026, provided the necessary regulations are in place. The policy was announced on 5 August 2026, but the detailed eligibility framework is still being implemented.
This distinction is important.
Businesses should not assume that a system automatically qualifies simply because it falls within the proposed 100 kW to 1 MW range.
The final regulatory requirements need to be satisfied, including applicable installation, product, installer, planning and network requirements.
For a project with a long design and approval process, it makes sense to start preparing early rather than waiting until October.
Who Is Eligible for the Expanded Commercial Solar Rebate?
The reform is aimed primarily at mid-sized solar projects.
The Australian Government specifically identifies potential beneficiaries including:
● Commercial and industrial buildings
● Warehouses and logistics centres
● Farms
● Agricultural processing facilities
● Schools
● Hospitals
● Community organisations
● Manufacturers
● Retail businesses
● Transport and logistics operators
The common theme is straightforward:
Businesses and organisations with substantial electricity consumption and enough roof or site area to support a larger solar system.
The proposed eligibility requirements include:
● New solar PV systems above 100 kW and no more than 1 MW
● A maximum combined capacity of 1 MW for expansions to existing systems
● Required installer and product accreditation under the SRES
● Compliance with applicable electrical safety regulations
● Required planning approvals
● Appropriate network connection agreements
The detailed eligibility rules remain subject to the regulations.
How Much Is the 2026 Commercial Solar Rebate Worth?
The government has described the benefit as around 20% of the cost of installing a medium-sized solar system.
However, there is no single fixed dollar rebate that applies to every project.
The actual value depends on the STCs created by the installation and the value assigned to those certificates.
The government’s own examples indicate that the potential discount can be substantial.
A 250 kW system is estimated by the government to receive a discount of about $68,000, while a 500 kW system is estimated at about $136,000.
These are government estimates, not guaranteed quotes.
Your actual rebate value will depend on the specific system and the rules that apply when it becomes eligible.
How Are Commercial Solar STCs Calculated?
The basic STC calculation is based on:
STCs = system capacity × applicable STC factor
The STC factor reflects the system’s expected renewable electricity generation under the scheme’s rules.
For the expanded mid-scale solar category, the Australian Government states that the STC factor will be based on a five-year deeming period each year through to 2030.
This is important because the SRES is scheduled to wind down in 2030.
As the scheme moves closer to its end date, the deeming period changes.
The certificate value can therefore change depending on when an eligible project is installed.
The practical message for business owners is simple:
Don’t assume today’s rebate value will remain identical next year.
What Are STCs?
Small-scale Technology Certificates (STCs) are certificates created under Australia’s Renewable Energy Target scheme for eligible renewable energy installations.
For eligible solar systems, STCs represent the value of the renewable energy the system is expected to generate under the scheme.
In a typical commercial installation, the business does not need to personally trade certificates on the market.
The installer will generally arrange the STC process and assign the certificate rights in return for an upfront reduction in the installation price.
The Australian Government explains that installers and retailers commonly include the value of STCs as an upfront discount.
STCs vs LGCs: What’s the Difference?
This distinction is important for anyone comparing commercial solar options.
Small-scale Technology Certificates (STCs)
STCs are generally reflected as an upfront discount on an eligible installation.
Large-scale Generation Certificates (LGCs)
LGCs are associated with the large-scale renewable energy framework and are generated based on electricity actually produced by an eligible system.
For businesses historically caught above the 100 kW SRES limit, the LGC model meant the financial benefit came through ongoing certificate generation.
The new SRES expansion gives eligible systems above 100 kW and up to 1 MW access to the STC pathway instead.
For businesses evaluating a major capital purchase, an upfront reduction can make the initial business case considerably easier to justify.
Does the Commercial Solar Rebate Cover Batteries?
The expanded mid-scale solar SRES support is for solar PV systems.
It should not be confused with separate battery programs.
The Australian Government has a separate Cheaper Home Batteries Program, while some states also operate their own battery incentives.
Whether a commercial battery can receive another incentive depends on the relevant program and its eligibility rules.
Businesses should therefore assess:
Solar incentive + battery incentive + electricity savings + export revenue + project costs
rather than assuming every component of a solar-and-battery project receives the same rebate.
Is the 20% Commercial Solar Rebate Guaranteed?
No.
The 20% figure is the government’s stated estimate for the reduction in upfront installation costs for medium-sized systems.
It should not be interpreted as a guaranteed 20% cash rebate on every commercial solar quote.
Your actual result depends on:
● System size
● Project location
● Applicable STC factor
● Installation timing
● STC market value
● System pricing
● Network requirements
● Site conditions
● Engineering requirements
● Equipment selection
A business could therefore receive a different percentage or dollar outcome from another business installing a similar-sized system.
Commercial Solar Rebate Examples
The government’s announced estimates provide useful context.
250 kW Commercial Solar System
The government estimates a discount of approximately:
$68,000
This could make a substantial difference to the capital cost of a medium-sized commercial solar installation.
500 kW Commercial Solar System
The government’s estimate rises to approximately:
$136,000
Again, this is an indicative government estimate rather than a guaranteed project price.
The key takeaway is not the exact number.
It is that the upfront incentive can materially change the economics of a mid-sized commercial solar project.
How Much Can a Commercial Solar System Save?
The rebate is only one part of the business case.
The larger financial opportunity comes from the combination of:
Upfront incentive + lower electricity purchases + greater solar self-consumption + potential export income
Commercial buildings often have a useful natural match between solar production and electricity demand.
Many businesses operate primarily during daylight hours, when rooftop solar is producing electricity.
That can allow a business to consume more of its solar generation directly rather than exporting the electricity to the grid for a comparatively lower return.
The Australian Government says expanding mid-scale solar can reduce business energy costs and give businesses more control over energy use.
Why Daytime Electricity Use Matters
A commercial solar system should not be sized simply according to how much roof space is available.
It should be designed around electricity consumption.
For example, a warehouse might have:
● Refrigeration
● HVAC
● Lighting
● Conveyor systems
● Office equipment
● Battery charging
● Processing equipment
If many of these loads operate during daylight hours, solar generation can directly offset grid electricity consumption.
That can be more valuable than installing the largest possible system and exporting a large percentage of its output.
A strong commercial solar business case therefore starts with 12 months of actual electricity data.
How to Determine the Right Commercial Solar System Size
Before requesting quotes, examine your electricity consumption.
Look at:
● Annual electricity usage
● Monthly electricity bills
● Interval consumption data
● Daytime load
● Weekend load
● Seasonal demand
● Demand charges where applicable
● Existing solar generation
● Available roof area
● Roof orientation and shading
● Network connection limits
Then model different system sizes.
For example:
250 kW vs 300 kW vs 500 kW
The biggest system is not automatically the most profitable.
The best system is the one that produces the strongest combination of:
capital cost + solar generation + self-consumption + electricity savings + available incentive.
Why Network Approval Matters
A large commercial solar system is not simply a bigger version of a residential installation.
As system size increases, network connection requirements can become a significant part of the project.
Your local Distributed Network Service Provider (DNSP) may need to assess the proposed connection.
This can affect:
● Project timing
● Export limits
● Inverter requirements
● Connection costs
● Protection systems
● Engineering
● Commissioning
The Australian Government has said it intends to improve network connection processes for mid-scale solar projects.
For a business planning a 100 kW to 1 MW project, network requirements should therefore be considered at the beginning, not after the equipment has already been selected.
How to Access the Commercial Solar Rebate
The expanded scheme is expected to commence from 1 October 2026, subject to regulations.
However, businesses considering a project should start planning before then.
Step 1: Analyse Your Electricity Use
Obtain your electricity bills and interval data.
Find out when your business uses the most electricity.
Step 2: Determine Your Ideal System Size
Model several options based on your actual consumption rather than simply filling the available roof.
Step 3: Check the Network Connection
Ask your installer to identify the DNSP requirements for your proposed system size.
Step 4: Confirm Eligibility
Make sure the proposed project satisfies the SRES requirements applicable at the time of installation.
Step 5: Use Approved Equipment
Confirm that the required solar products and installation arrangements satisfy the applicable SRES requirements.
The Clean Energy Council maintains approved product lists covering solar PV modules, inverters and batteries, while Solar Accreditation Australia now operates the installer accreditation scheme for SRES purposes.
Step 6: Compare Multiple Quotes
A government incentive does not make every solar quote good value.
Compare:
● System design
● Equipment quality
● Warranty
● Installation standards
● Price
● Expected annual generation
● Self-consumption assumptions
● Network costs
● Ongoing support
Step 7: Confirm the Timing
Because eligibility depends on the final rules and installation timing, confirm with your installer how the project will qualify under the expanded SRES.
Do You Need to Wait Until October 2026?
Not necessarily.
A mid-sized commercial solar project can take months to plan, design, approve and install.
Waiting until the scheme officially opens to start investigating your options could delay the project unnecessarily.
A better approach is to begin:
● Energy analysis
● Roof assessment
● Preliminary design
● Network investigation
● Financial modelling
● Installer comparisons
Then confirm the final regulatory and eligibility position before committing.
The Australian Government’s current position is that the expanded SRES is intended to apply to qualifying mid-scale systems installed from 1 October 2026, subject to the regulations.
Why You Should Compare Commercial Solar Quotes
The rebate is only one component of the project.
A business could receive a substantial incentive and still make a poor investment decision if:
● The system is oversized
● Equipment is poorly specified
● The installation price is inflated
● Network upgrade costs are overlooked
● Expected savings are unrealistic
● Self-consumption has been overestimated
● The warranty terms are weak
For projects worth hundreds of thousands of dollars, even a modest difference between competing proposals can have a major impact on overall project returns.
A proper commercial solar comparison should look at the whole project, not just the advertised rebate.
What Businesses Should Look for in a Commercial Solar Proposal
Before signing a quote, check whether it clearly states:
System capacity
Is it actually 250 kW, 500 kW, 750 kW or another size?
Estimated annual generation
How many MWh is the system expected to produce?
Self-consumption
How much of that electricity is expected to be used on-site?
Export assumptions
What happens to excess electricity?
Rebate or STC value
Is the incentive clearly itemised?
Net project cost
What will the business actually pay?
Network costs
Are connection and upgrade costs included?
Equipment
Which panels, inverters and other components are being proposed?
Warranties
What protection applies to equipment and workmanship?
Financial return
What are the projected payback period, savings and return on investment?
A good proposal should allow a business owner or CFO to understand the assumptions behind the numbers.
Commercial Solar Rebate and Payback Period
A lower upfront system cost can materially improve project payback.
For example, if a solar system costs significantly less after the applicable incentive, the business needs to recover a smaller initial investment through electricity savings.
That can shorten the simple payback period.
However, payback should not be calculated from the rebate alone.
A proper commercial solar financial model should also consider:
● Electricity price
● Solar production
● Electricity consumption
● Future tariff changes
● Export rates
● Maintenance
● Inverter replacement assumptions
● Financing costs
● Tax treatment
● System degradation
● Project lifespan
The rebate can make a project more attractive, but it is still important to understand the complete financial model.
Commercial Solar Rebate 2026: What About Systems Under 100 kW?
Systems under 100 kW already operate within the existing SRES framework, so the new mid-scale expansion does not represent the same change for them.
The significant change is for projects that previously sat above the SRES boundary.
For a business considering a system close to the threshold, it may therefore be worthwhile modelling several sizes rather than assuming the answer is obvious.
For example:
90 kW vs 120 kW
The better choice depends on the business’s actual energy requirements and the rules that apply to the project.
Do not shrink a system purely to fit an old threshold if the business genuinely needs more solar capacity.
What About Solar Systems Above 1 MW?
The expanded SRES is intended to cover eligible systems above 100 kW and no more than 1 MW.
New systems larger than 1 MW remain outside the expanded mid-scale SRES category and are dealt with under the larger-scale renewable energy framework.
For businesses considering a project close to 1 MW, professional engineering, financial and regulatory advice becomes especially important.
Can Existing Commercial Solar Systems Qualify?
The announced expansion is aimed at eligible mid-scale solar installations under the new framework.
The Australian Government states that existing mid-scale systems already supported under the LRET will continue under that scheme.
Businesses with an existing system considering an expansion should not assume that the entire installation automatically becomes eligible for the new treatment.
The proposed rules include a maximum combined capacity of 1 MW for expansions to existing systems, so the exact project structure matters.
This is another reason to have the project assessed before committing to an expansion.
Is the Commercial Solar Rebate Available in Every Australian State?
The SRES expansion is a federal scheme.
That means it is separate from state or territory solar and battery incentives.
The Australian Government has confirmed that the federal SRES operates separately from state-run rebates.
A business may therefore need to consider multiple incentive programs independently.
Whether incentives can be combined depends on the individual rules of each program.
What Equipment Requirements Apply?
Eligibility is not based on system size alone.
The Australian Government identifies installer and product accreditation requirements as part of the expanded SRES eligibility framework. Systems must also comply with state or territory electrical safety requirements, planning requirements and network connection agreements.
The Clean Energy Council maintains approved lists for solar PV modules and inverters used for SRES eligibility, and it states that approved products meet relevant Australian and international standards.
Solar Accreditation Australia is the current accreditation scheme operator for SRES installers and designers.
For a commercial project, product selection should therefore be treated as a compliance and performance decision — not simply a price comparison.
Why the 2026 Change Matters for Australian Businesses
The significance of the reform goes beyond the rebate amount.
Businesses have increasingly been investing in rooftop solar to reduce exposure to electricity costs, but the previous 100 kW SRES boundary created a financial gap for businesses that needed larger systems.
The new framework effectively moves that boundary.
That gives more organisations an opportunity to install a solar system that better matches their electricity consumption rather than designing a project around an old incentive limit.
The government says the reform is intended to help businesses and community organisations lower energy costs and unlock more commercial rooftop solar.
Which Businesses Could Benefit Most?
The expanded commercial solar rebate may be particularly relevant to businesses with:
● Large warehouse roofs
● Manufacturing facilities
● Retail sites
● Distribution centres
● Farming operations
● Agricultural processing
● Schools
● Hospitals
● Community facilities
● High daytime electricity consumption
The strongest candidates are generally those with a combination of:
large available roof area + substantial daytime electricity demand + a suitable network connection.
What Should You Do Before Applying?
The strongest commercial solar projects start with data.
Before requesting a quote, gather:
● 12 months of electricity bills
● Interval meter data
● Current electricity tariff
● Site plans
● Roof information
● Existing solar details
● Electricity usage by operating hours
● Planned future expansion
● Available capital or financing assumptions
Then ask installers to model several system sizes.
This makes it much easier to determine whether the rebate actually improves the financial case for your business.
The Biggest Mistakes to Avoid
Choosing the System Based Only on Roof Size
A large roof does not necessarily justify a large solar system.
Size the system around electricity demand and financial return.
Treating 20% as a Guaranteed Discount
The government says around 20%. Your actual STC value may differ.
Ignoring Network Approval
A system that looks financially attractive on paper can become less attractive if significant network costs or delays are discovered late.
Comparing Only the Final Price
A cheaper system is not necessarily the better commercial investment.
Compare equipment, design, warranties, generation assumptions and installer experience.
Waiting Until October to Start Planning
Mid-sized projects can take months to develop.
Begin the assessment early and confirm the final eligibility requirements before installation.
Assuming Batteries Receive the Same Incentive
The expanded mid-scale SRES support is for solar PV. Battery incentives operate under separate programs and rules.
Why Now Is a Good Time to Assess Commercial Solar
The new policy creates an important opportunity, but the best time to make a decision is not necessarily when the rebate officially begins.
Commercial solar projects require planning.
A business may need:
Energy analysis → site assessment → system design → network application → approvals → procurement → installation → commissioning
That process can take time.
Starting early gives your business an opportunity to compare system sizes and commercial offers before making a large capital commitment.
Commercial Solar Rebate 2026: The Bottom Line
The expansion of Australia’s Small-scale Renewable Energy Scheme is a significant development for businesses considering commercial solar systems above 100 kW and up to 1 MW.
From the expected 1 October 2026 commencement, subject to the necessary regulations, eligible systems in this range will be able to access STCs under the expanded SRES. The Australian Government says the change could reduce the upfront cost of medium-sized solar installations by around 20%.
For a business considering solar, that can change the economics of the project considerably.
But the rebate should be viewed as one part of a much larger investment decision.
The right commercial solar project should answer four questions:
How much electricity does the business use?
How much solar can it consume directly?
What will the complete system cost after incentives?
What return will the system generate over its operating life?
A well-designed system can combine the upfront incentive with ongoing electricity savings, helping businesses reduce operating costs and make better use of large commercial rooftops.
For businesses considering a project in the 100 kW to 1 MW range, the opportunity is worth investigating now — particularly before the expanded scheme is due to commence.
FAQs: Commercial Solar Rebate 2026
1. When does the commercial solar rebate for systems up to 1 MW start?
The expanded SRES is expected to apply from 1 October 2026, subject to the necessary regulations being in place.
2. What is the maximum commercial solar system eligible under the expanded SRES?
The new mid-scale category covers eligible solar PV systems above 100 kW and no more than 1 MW.
3. How much is the 2026 commercial solar rebate worth?
The Australian Government says the expansion could reduce the upfront cost of a medium-sized commercial solar installation by around 20%. The actual dollar value depends on the system and applicable STC calculations.
4. Is the 20% commercial solar rebate guaranteed?
No. Around 20% is the government’s headline estimate. The actual incentive depends on factors including system size, applicable STC rules, installation timing and certificate value.
5. What is the difference between STCs and LGCs?
STCs are generally reflected as an upfront incentive for eligible installations, while LGCs are generated over time based on renewable electricity produced under the large-scale renewable energy framework. The new SRES expansion allows eligible systems above 100 kW and up to 1 MW to access STCs.
6. Does the commercial solar rebate cover batteries?
The expanded mid-scale SRES support is for eligible solar PV systems. Batteries are covered by separate federal and state incentive programs, depending on eligibility.
7. Can a 250 kW commercial solar system qualify?
Yes, a new solar PV system above 100 kW and no more than 1 MW falls within the announced mid-scale eligibility range, subject to the final regulations and other SRES requirements.
8. Can an existing commercial solar system be expanded under the new scheme?
Potentially, but the proposed rules include a maximum combined capacity of 1 MW for expansions to existing systems. The exact project and eligibility conditions should be confirmed before proceeding.
9. Do commercial solar systems need approved products and accredited installers?
SRES eligibility includes product and installer accreditation requirements, as well as electrical, planning and network compliance. The Clean Energy Council maintains approved product lists, and Solar Accreditation Australia operates the SRES installer accreditation scheme.
10. Should my business wait until October 2026 before getting a commercial solar quote?
Not necessarily. Mid-sized commercial solar projects can require substantial design, network approval and procurement work. Starting the assessment early can help you understand the project and prepare for the expanded scheme, while confirming final eligibility and timing with your installer once the regulations are in place.
