Rebates and incentives
Commercial Solar Rebates
For fifteen years the federal solar rebate stopped at 100 kW, so businesses with big roofs designed systems to fit the rebate instead of their power bill. That cap is being lifted to 1 MW. It is the biggest change to commercial solar economics in over a decade.
The missing middle
Australia leads the world in rooftop solar, but almost all of it is on houses. Residential rooftops account for around 22 gigawatts of installed capacity. Commercial rooftops account for roughly 5.6 gigawatts, and most of that sits in systems under 100 kW.
That gap is not an accident. It is what the rebate rules produced.
Under the Small-scale Renewable Energy Scheme, a solar system up to 100 kW earns small-scale technology certificates, which come off the invoice as an upfront discount. Go one kilowatt over and the system falls out of that scheme entirely and into the large-scale target instead, where the support arrives as large-scale generation certificates.
Those are a different proposition. There is no upfront discount. The business has to register as an accredited power station with the Clean Energy Regulator, install specialised metering, and then track and trade certificates every year for the life of the asset. For a warehouse or a farm, that is a lot of administration for a benefit that arrives slowly.
So businesses did the rational thing. They designed a 99 kW system on a roof that could carry four times that, and took the discount.
The cap goes to 1 MW
In August the federal government announced that the Small-scale Renewable Energy Scheme will be expanded from 100 kW to 1 MW. The change is expected to commence on 1 October 2026, subject to the necessary regulations being in place.
In plain terms: a business can size its solar system around the power it actually uses, and still get the discount off the invoice rather than chasing it over twenty years.
The government has put the reduction in installed cost at around 20 per cent for eligible mid-scale systems. Its own worked examples are a discount of roughly $68,000 on a 250 kW system and around $230,000 on an 850 kW system. Those are indicative figures rather than quotes, because certificate prices move.
One detail worth knowing
For newly eligible systems between 100 kW and 1 MW, the certificate calculation is based on a five year deeming period, held at that level each year through to 2030.
Residential certificates work differently. Their value steps down every calendar year, which is why homeowners are always being told to hurry. Mid-scale is not on that clock. That makes a business case easier to build, because the number you model in a board paper this year is still the number in three years.
Victorian businesses already have a second scheme
Separately from the federal change, Victoria runs its own incentive for commercial and industrial solar through the Victorian Energy Upgrades program. The commercial and industrial solar activity commenced on 29 September 2025 and is open now.
It covers systems from 30 kW to 200 kW, split into two activities: 47A for systems from 30 kW up to 100 kW, and 47B for systems from 100 kW to 200 kW. Eligible installations generate Victorian energy efficiency certificates, which are delivered as an upfront reduction on the installed cost rather than a payment later.
What a site has to satisfy
The system has to be grid connected and installed in line with a negotiated connection contract with your distribution network provider. Panels and inverters must be Clean Energy Council approved. Design and installation must be carried out by someone holding current Solar Accreditation Australia accreditation, and the electrical work by a licensed A-grade electrician.
One constraint that catches people out: there can only be one commercial and industrial solar activity per National Metering Identifier. If a site has already claimed under the activity, a second claim on the same meter is not available, though adding capacity to an existing system can be eligible in its own right.
The two schemes are not mutually exclusive
This is the part most businesses do not realise. A Victorian commercial system can claim federal certificates and Victorian certificates on the same installation, provided it meets both sets of criteria.
Which combination applies depends on size, and the answer changes on 1 October.
Under 100 kW, today
Federal certificates apply now, and Victorian certificates apply from 30 kW up. Nothing about this changes in October. If your site suits a system under 100 kW, there is no reason to wait.
Between 100 kW and 200 kW
Victorian certificates are available now under activity 47B. Federal certificates are not, until the cap lifts. This is the band where timing genuinely matters, and we will model both cases for you rather than guess.
Between 200 kW and 1 MW
Currently outside both the federal small-scale scheme and the Victorian deemed activity. From October, federal certificates become available. For larger Victorian systems there are separate measurement and verification pathways, which are more involved but not closed off.
Should you wait for October?
Sometimes yes, often no, and the honest answer depends entirely on system size.
If the right system for your site is under 100 kW, waiting achieves nothing. The rebate you can access today is the rebate you can access in November.
If the right system is between 100 kW and 1 MW, the economics change materially on 1 October, and eligibility is determined by when the system is completed and connected rather than when it is ordered. That matters, because grid connection approvals for commercial systems are not quick. A project started now may well connect after the change takes effect, which is an argument for beginning the process rather than sitting on it.
The one caveat we give everybody: the expansion is announced and confirmed, but it commences subject to final regulations. We will not ask a business to sign on the basis of a rebate that is not yet law. What we will do is design the system for your load, model it both ways, and be straight with you about which parts are certain and which are not.
Storage is a separate scheme
The federal battery program is open to businesses as well as households, covering systems up to 100 kWh of usable capacity. The discount is delivered through the same certificate mechanism, so it comes off the invoice.
Two things to keep straight. The battery program and the solar expansion are different schemes with different rules, and the 1 MW figure applies to solar generation, not storage. And the federal battery incentive steps down on 1 January 2027, which puts a real date on the storage decision even where the solar decision can wait.
Questions businesses ask us
Is this actually confirmed, or just announced?
Announced and confirmed by the federal government, with a commencement date of 1 October 2026 stated as subject to the necessary regulations being in place. That is a meaningful distinction and we will not pretend otherwise. The direction is clear, the final regulations are not yet made.
Does my business qualify?
The expanded scheme is aimed at businesses, farms and community facilities: manufacturers, warehouses, logistics, retail, schools, hospitals, agricultural operations and not-for-profits. If you occupy a building with a substantial roof and daytime electricity demand, you are the intended audience.
We already have solar. Can we add to it?
Often yes. Adding new modules and inverters to an existing system can be eligible, and so can replacing an old system. The rules differ between the federal and Victorian schemes and depend on what is already on the meter, so it is worth a specific conversation rather than a general answer.
How long does a commercial installation take?
Longer than a house, and the variable is rarely the installation itself. Network connection approval is usually the critical path on commercial systems, and it is the reason we tell businesses to start the process earlier than feels necessary.
Do we have to handle the certificates ourselves?
No. Under both schemes the certificates are assigned and the discount is applied to your installed cost. That is precisely the difference between the small-scale scheme and the large-scale target, and it is the reason the cap change matters so much.
Does the roof need to be in good condition?
It needs to be worth putting a twenty-five year asset on. We assess structure, sheeting condition and remaining roof life during the site assessment, and we will tell you if the roof should be dealt with first.
Find out what your roof is worth
Send us your address, a recent electricity bill and a rough idea of when your site draws the most power. We will come back with the system size that suits your load, which schemes apply at that size, and what the numbers look like before and after October.
