Policy update · 5 August 2026

    Commercial solar rebate 2026: the government just opened the SRES to 1 MW systems

    By EnergyPlans6 min read

    Built on data, not deals. We don't sell solar — we track the plans and the policy so Australian businesses and households can see the numbers straight.

    The short version

    • The Small-scale Renewable Energy Scheme (SRES) now covers commercial solar up to 1 MW — up from a 100 kW cap.
    • That's roughly 20% off the upfront install cost, via Small-scale Technology Certificates (STCs).
    • Announced by Climate & Energy Minister Chris Bowen at the National Press Club; effective 1 October 2026.
    • Aimed at the "missing middle" — factories, warehouses, farm sheds, retail and logistics — plus apartments/townhouses and regional areas.
    • Government worked examples: a 250 kW system ≈ ~$68k–$70k off + ~$50k/yr saved; an 850 kW system ≈ ~$232k off + ~$175k/yr saved.

    What actually changed

    Australia's small-scale solar incentive has, for years, stopped at systems of 100 kilowatts. Anything bigger dropped into the large-scale scheme, with a slower, more complex certificate process — enough friction that a lot of medium-sized businesses simply never bothered. This change lifts the ceiling tenfold.

     BeforeFrom 1 Oct 2026
    Max system under SRES100 kW1 MW
    Upfront supportSTCs to 100 kWSTCs to 1 MW (~20% off install)
    Who it suitedHomes, small shopfronts+ Factories, warehouses, farms, medium commercial, apartments
    Process for mid-size systemsLarge-scale scheme (slow)Simpler small-scale certificates

    How much a business could save

    These are the government's own worked examples. The upfront discount is delivered as STCs, so the exact dollar figure moves with the certificate price on the day — treat them as government estimates, not a quote.

    System sizeIndicative upfront discountIndicative annual bill saving
    250 kW (mid-size warehouse / farm)~$68,000–$70,000~$50,000 / yr
    850 kW (large industrial roof)~$232,000~$175,000 / yr

    Who's eligible

    The policy is squarely aimed at what the government calls the "missing middle": the medium-sized rooftops that are too big for the old 100 kW cap but too small to justify a utility-scale project. In practice that means:

    • Industry & trade: manufacturing, warehousing, transport and logistics.
    • Agriculture: farm sheds, packing houses, irrigation-heavy operations.
    • Retail & services: shopping centres, larger independent retailers (cited as potentially ~$50k/yr better off).
    • Medium-density housing: apartment blocks and townhouse complexes previously locked out.
    • Regional & remote: explicitly called out as a target for wider access.

    Context for the scale of the opportunity: industry estimates put untapped commercial rooftop potential at 80+ GW, against only about 5.6 GW installed today — versus 22+ GW already on Australian homes. Commercial roofs are where the runway is.

    Running a business weighing up solar?

    See whether the new 1 MW rebate stacks up for your site, and join the list to be matched with vetted commercial installers.

    Check commercial solar for my business

    When it starts — and what to do before then

    The change is slated to take effect 1 October 2026. That gives a genuine planning window rather than a scramble. A few practical notes:

    • Get quotes now, install from October. Design, finance and roof assessments take weeks — line them up so you're ready to claim under the new cap the day it opens.
    • Watch grid connection, not just the rebate. Bowen also asked the Australian Energy Market Commission to expedite network approvals, calling current delays "unacceptable." For larger systems, the connection queue — not the incentive — is often the real timeline.
    • Model the STC value with a buffer. Because certificate prices float, ask installers to show the saving at a conservative STC price, not the best case.

    Our read

    The headline "20% off" is real, but the number that decides your payback is the one nobody puts on a poster: how much of your generation you actually use on-site versus export. A warehouse that runs machinery through daylight hours is the ideal case — most of the solar offsets power you'd otherwise buy at retail rates. A site that's busy after dark exports more, and export is where value has been thinning as feed-in tariffs fall.

    So the rebate genuinely helps the "missing middle" — but the businesses that win most are the ones that match their load to the sun, size the system to self-consumption rather than roof space, and treat the retail electricity contract as part of the decision, not an afterthought. The incentive lowers the entry price; the plan and the load profile decide the return.

    Getting solar at home instead?

    The panels are only half of it. The retail plan and feed-in tariff you're on can swing your payback by hundreds a year.

    Solar feed-in tariffs by state

    Frequently asked questions

    The federal government has expanded the Small-scale Renewable Energy Scheme (SRES) so commercial and industrial solar systems up to 1 megawatt now qualify for Small-scale Technology Certificates (STCs), cutting upfront install costs by roughly 20%. Previously the cap was 100 kW.

    About this page

    EnergyPlans is an Australian energy comparison platform. We don't sell solar panels; we help you get the retail side right and publish policy explainers when the rules change.

    Sources: Minister Bowen, National Press Club address (Aug 2026); syndicated coverage. Rebate dollar figures are government estimates and depend on system design, location and STC prices. Confirm against energy.gov.au before committing.

    Ready to compare plans?

    Compare energy plans from selected Australian retailers — including feed-in tariffs and usage rates for solar homes.

    We earn a commission when you switch through us, and our switching partner offers a smaller panel than the plans we track. How we make money