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Solar rebate (under SRES Scheme Australia) Cap Raised 10x from 100kW to 1MW

Government Schemes, Regulations, Training, Planning & Organisations

Last Post by jamespipe 1 hour ago

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jamespipe

(@jamespipe)

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Joined: 3 years ago

Posts: 14

Topic starter 25/09/2026 4:25 am [#3173]

Eligibility ceiling of Australia's Small-scale Renewable Energy Scheme (SRES) — the scheme that funds Small-scale Technology Certificates (STCs) — has been expanded from 100kW to 1MW. Climate Change and Energy Minister Chris Bowen announced this on 5 August 2026, with the change set to take effect from 1 October 2026, pending final regulations.

Why it matters: STCs have discounted rooftop solar since 2011, with eligible installs earning certificates based on expected electricity generation that installers typically claim on the customer's behalf and pass through as an upfront, retail discount. Until now, that upfront discount stopped at 100kW capacity — anything larger was pushed into the Large-scale Renewable Energy Target, where systems earn Large-scale Generation Certificates (LGCs) year by year as they generate.

The "missing middle" problem this fixes: The 100kW cap created an awkward cutoff — a 90kW system could access an upfront rebate, while a 150kW system on the warehouse next door couldn't, even with plenty more roof space to use. Some business owners intentionally downsized planned installations just to stay under 100kW cap and capture the STC discount.

Expected savings: The expansion could reduce the upfront cost of commercial solar installations by around 20%.

Based on a mid-scale solar PV system installations the estimated discount is about $68,000 off a 250 kW system - enough to support a reasonably large commercial operation or $136,000 off a 500 kW system, which could power a small manufacturing site.

A 250kW solar PV installation on a medium sized enterprise, like a retailer, could produce around 345 MWhs of electricity a year, saving around $50,000 of electricity costs each year.

A large 850kW solar PV installation, which would be more suited to an industrial energy user, could produce around 1,173 MWhs of electricity a year, saving around $175,000 of electricity costs each year.

Chris Bowen

Minister for Climate Change and Energy, Australia.

Who benefits most: Warehouses, distribution centres, manufacturers, cold storage facilities and schools with large, unshaded roof space and daytime energy loads are best placed to benefit, along with agricultural operations, shopping centres, and hospitals.

Roof space context: As a rough guide, 1MW of solar needs somewhere around 4,000 to 5,000m² of usable roof space, so most businesses will land well under the cap.

Advantage for Victoria businesses: Victorian businesses don't have to wait until October — the Victorian Energy Upgrades (VEU) program already offers an upfront incentive for eligible commercial and industrial solar systems between 30kW and 200kW, running since September 2025, meaning many Victorian businesses could stack a state incentive with the federal one once the SRES threshold lifts.

Read more on ipromiseaustralia.com.au/blog

Heat pump installer at ipromiseaustralia.com.au

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