Got a big empty roof on your warehouse, farm shed or factory? There’s good news coming. From 1 October 2026, a federal scheme change will make commercial-scale solar much more affordable for Australian businesses. In this guide, we’ll explain how the new solar incentive works. We’ll also cover who benefits and what it could be worth for your business.
What is the Small-scale Renewable Energy Scheme?
The Small-scale Renewable Energy Scheme, or SRES, is the federal program behind Australia’s solar boom. It’s been running since 2011. Under the scheme, an eligible solar installation earns small-scale technology certificates, known as STCs. Energy retailers are required to buy these certificates. That demand is what funds the upfront discount you see on a solar quote. The SRES has driven most of the residential rooftop solar installed across Australia. It’s administered by the Clean Energy Regulator, and it’s designed to be budget neutral for government.
Why businesses have missed out until now
Here’s the catch. The SRES has always capped eligible systems at 100kW. That’s plenty for a house, but nowhere near enough for a factory or a large shed. Anything bigger has had to rely on large-scale generation certificates instead. Those certificates are priced differently, and their value can be harder to predict. As a result, business uptake has lagged well behind households. Residential solar capacity across Australia sits at around 22 gigawatts, while businesses have only installed about 5.6 gigawatts. Energy Minister Chris Bowen has called this gap the “missing middle” of Australia’s energy transition.
What’s changing from October 2026
The fix is a straightforward one. The expanded SRES is expected to commence from 1 October 2026, subject to the necessary regulations being in place. From that date, the 100kW cap lifts to 1MW. That’s ten times the current limit. Eligible systems will also get upfront, deemed certificates instead of the more volatile large-scale certificates that currently apply above 100kW. On top of that, eligible systems are expected to keep a five-year deeming rate through to 31 December 2030. That’s instead of facing the annual step-down that applies to smaller systems as the scheme winds down. Put simply, the numbers become more predictable for larger projects.
What the rebate could be worth
The government has published some working examples to show the scale of the saving. A 250kW system, suited to a medium-sized retailer, could save close to $68,000 upfront. An 850kW system suits a bigger site, like a large retail complex or logistics warehouse. At that size, the savings could top $230,000. Across the board, the government expects installation costs to fall by around 20% for commercial, industrial and agricultural rooftops. As with any rebate, your actual savings will depend on your system size and site conditions. It’s worth getting a proper quote to see real numbers for your business.
Faster approvals are part of the plan too
Cost isn’t the only barrier businesses have faced. Slow network approvals have also held back commercial and industrial solar projects. To address this, the government has asked the Australian Energy Market Commission for help. The goal is to get network providers approving commercial and industrial solar connections faster. That’s a welcome move for any business stuck waiting on paperwork before they can even start construction.
Who this applies to
The change is aimed squarely at that middle ground. Think factories, warehouses, farm sheds, retail premises and other large industrial or commercial buildings. If your business has a big roof and a system size between 100kW and 1MW in mind, this is worth paying attention to. Systems already installed below the old 100kW cap aren’t affected, and small residential solar continues under its own existing rules within the same scheme. It’s the mid-sized commercial market that stands to gain the most from this change.
Getting started
Eligibility and certificate values depend on your system size, site, and installation date. Because of that, it pays to check the details before committing to anything. The Clean Energy Regulator and the Department of Climate Change, Energy, the Environment and Water both publish current SRES guidance. That’s the best place to confirm the rules that apply to your project.
Beyond the official rules, the easiest way to see what this means for your business is to compare quotes. A good commercial solar quote will show your expected system size and the certificate value on offer. It should also include a realistic payback period based on your energy use. If a bigger rooftop solar system is on your radar for 2026, getting a few quotes side by side is a simple first step. It’ll give you a much clearer picture than working off averages alone.