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Commercial Solar Rebate Expands to 1MW From 1 October: What It Means for Your Business
For years, the federal solar rebate worked well for homes and small businesses, but larger commercial rooftops missed out. From 1 October 2026, that changes. The Small-scale Renewable Energy Scheme (SRES) now covers eligible solar systems up to 1MW, ten times the previous 100kW limit.
If you run a warehouse, factory, cold store, farm shed, school or commercial building, this update is aimed squarely at you.
What Has Changed
Until now, only solar systems up to 100kW could create Small-scale Technology Certificates (STCs), which are what deliver the upfront discount on an installation. Larger systems had to use a different scheme that does not provide the same immediate cost reduction.
From 1 October 2026, eligible systems between 100kW and 1MW can also create STCs. The Clean Energy Regulator has confirmed the change applies to eligible systems installed from that date.
Who Benefits Most
Businesses with large roof space and steady daytime energy use are best placed to benefit. That includes:
Warehouses and distribution centres
Manufacturers and food processors
Cold storage and refrigerated facilities
Farms, poultry and egg sheds, and dairies
Schools, aged care and childcare facilities
Shopping centres and commercial property owners
For many of these sites, a 100kW system only used a fraction of the available roof. The new limit makes it practical to size a system around how much energy your business actually uses.
What It Could Mean for Your Costs
The government estimates the expansion could reduce the upfront cost of an eligible commercial system by around 20 per cent. As a guide, the government's own example puts the discount on a 250kW system at roughly $68,000.
These figures are estimates only. The actual value depends on your system size, location, the STC price at the time and your final installation date, so the only way to know your number is a site-specific quote.
Bigger Is Not Always Better
A larger rebate cap does not mean every business should install the largest system possible. The best commercial solar systems are designed around your electricity use, not around the incentive.
If your system generates far more than you use during the day, the excess is exported to the grid at a lower value than the power you would have consumed on site. A well-sized system matches your daytime load, and adding battery storage can help you use more of your own solar power in the evening or during peak periods.
Plan for Grid Connection Early
Larger systems usually need approval from your local network operator before they can be switched on, and these approvals can take time. The federal government has asked the Australian Energy Market Commission to review the process, but changes are still to come.
If you are considering a system above 100kW, start the conversation early so design, approvals and installation timing line up.
What to Do Now
Review your electricity bills and interval data to understand your daytime usage.
Check your available roof or ground space and any shading.
Ask for a system design sized to your load, not just your roof.
Confirm how the installation and commissioning date affects rebate eligibility.
Start network connection planning as early as possible.
Frequently Asked Questions
Does the rebate apply to batteries?
The expansion applies to solar PV systems. Battery incentives are separate and have their own eligibility rules, so ask us how the two can work together for your site.
Does my system have to be exactly 1MW?
No. The expanded scheme covers eligible systems from 100kW up to 1MW, and systems under 100kW were already covered.
Is this a cash rebate paid to me?
It works as an upfront discount through certificates, usually built into your installation quote by your installer.
Find Out What It Means for Your Site
Every roof, meter and load profile is different. Amazon Energy can assess your site, size a system to your usage and explain how the expanded rebate applies to your project.
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