Commercial solar continues to be an attractive option for Australian businesses looking to reduce electricity costs and make better use of large roof areas. Government incentives can also reduce the effective upfront cost of eligible solar installations, making the investment more accessible for businesses of different sizes.
In 2026, an important change has been announced for the commercial solar rebate landscape. On 5 August 2026, the Australian Government announced plans to expand eligibility under the Small-scale Renewable Energy Scheme, or SRES, so that eligible solar photovoltaic systems between 100 kW and 1 MW can create Small-scale Technology Certificates. The government intends the change to apply to eligible systems installed from 1 October 2026, subject to the necessary regulations being put in place.
This guide explains how commercial solar incentives currently work, what is changing and what Australian businesses should consider before installing a solar system.
What is the commercial solar rebate?
The term commercial solar rebate is commonly used to describe government incentives that reduce the effective cost of installing solar panels on a commercial property.
For eligible smaller solar systems, support is generally provided through the Australian Government's Small-scale Renewable Energy Scheme.
Under the scheme, eligible systems can create Small-scale Technology Certificates, or STCs. These certificates have a market value and can effectively reduce the upfront cost of a solar installation.
Businesses have the right to create and sell eligible STCs themselves, but in many cases they assign this right to a solar provider or registered agent in return for an upfront discount on the installation price.
This means businesses may see the incentive already deducted from the commercial solar quote rather than receiving a traditional cash rebate after installation.
How does the commercial solar rebate work in 2026?
As of August 2026, the existing SRES rules generally limit eligible solar PV systems to a capacity of no more than 100 kW, with annual electricity output of less than 250 MWh.
This means a business installing an eligible system such as:
- 30 kW
- 50 kW
- 75 kW
- 99 kW
- 100 kW
may be able to receive an upfront financial benefit through STCs, provided the system and installation meet the applicable requirements.
Historically, commercial systems above 100 kW have generally fallen under the Large-scale Renewable Energy Target rather than the SRES.
That distinction is now set to change.
Commercial solar rebate expanding to 1 MW
One of the most significant changes announced in 2026 is the proposed expansion of the SRES for larger commercial solar systems.
The Clean Energy Regulator confirmed on 5 August 2026 that the Australian Government intends to expand solar PV eligibility under the SRES to systems with a total onsite capacity between 100 kW and 1 MW.
The government intends these changes to apply to eligible mid-scale solar installations from 1 October 2026, subject to regulations being finalised.
This could make the SRES available to a much wider range of commercial, industrial and agricultural properties.
Potential beneficiaries may include:
- Warehouses
- Manufacturing facilities
- Distribution centres
- Shopping centres
- Farms
- Office buildings
- Hotels
- Large retail properties
- Cold storage facilities
- Industrial sites
Previously, a business considering a 300 kW, 500 kW or 1 MW solar installation would generally need to consider the Large-scale Renewable Energy Target framework.
Under the proposed arrangements, qualifying systems between 100 kW and 1 MW could instead become eligible to create STCs.
When will the 1 MW commercial solar rebate start?
The intended commencement date is 1 October 2026.
However, this date is subject to the required regulations being made.
The Clean Energy Regulator has also stated that additional design, installation and compliance requirements are being considered for mid-scale solar systems and that further guidance will be published before the changes take effect.
Businesses considering a system above 100 kW should therefore avoid assuming eligibility until the final rules are confirmed.
Timing may become particularly important for businesses planning installations in late 2026.
What are Small-scale Technology Certificates?
STCs are certificates created under the Small-scale Renewable Energy Scheme.
For electricity-generating systems, one STC represents 1 megawatt hour of renewable electricity that the eligible system is estimated to generate over the remaining life of the scheme.
The number of certificates associated with a solar installation can depend on factors including:
- Geographic location
- Installation date
- System capacity
- Expected renewable electricity generation
- Remaining years of the scheme
Because STCs have a market value, they can be sold.
Most commercial customers assign the certificates to an installer or registered agent, who then applies their value as a reduction to the system's purchase price.
This is why the incentive is often described as an upfront commercial solar rebate.
How much is the commercial solar rebate?
There is no single fixed dollar amount.
The value depends on several factors, including the number of STCs created and the market value of those certificates.
A larger eligible solar system will generally create more certificates than a smaller system because it is expected to generate more renewable electricity.
The installation date also matters because the SRES is scheduled to end in 2030, meaning the number of certificates that can be created decreases as the scheme approaches its end.
Businesses comparing quotes should therefore look for:
- Gross system cost
- Number of STCs
- STC value assumed in the quote
- Net price after the incentive
- Other installation charges
This makes it easier to compare offers accurately.
Are commercial solar rebates available for systems under 100 kW?
Yes.
Existing arrangements for eligible solar PV systems up to 100 kW are continuing.
The Clean Energy Regulator has stated that the proposed expansion for systems between 100 kW and 1 MW will not affect existing SRES arrangements for systems smaller than 100 kW.
This means many small and medium-sized Australian businesses can continue to access STC-based support for qualifying systems.
A 50 kW or 100 kW commercial solar system may therefore still qualify under the current SRES rules, subject to applicable eligibility requirements.
What happens with commercial systems over 100 kW today?
Until the new SRES expansion takes effect, systems larger than 100 kW generally do not qualify as small generation units under the existing SRES rules.
Instead, eligible systems above the threshold may be accredited as power stations under the Large-scale Renewable Energy Target, allowing them to create Large-scale Generation Certificates.
LGCs operate differently from STCs.
They are generally created based on actual renewable electricity generation rather than being provided as a simplified upfront benefit based on expected generation.
This can mean more administration and ongoing compliance for larger commercial systems.
The proposed 1 MW expansion is therefore significant because it could simplify access to incentives for many mid-scale commercial projects.
Can a 500 kW commercial solar system receive the rebate?
Under the current rules in August 2026, a 500 kW solar system would generally exceed the existing 100 kW SRES limit.
However, under the proposed arrangements announced by the Australian Government, eligible systems between 100 kW and 1 MW installed from 1 October 2026 could become eligible for STCs, subject to the final regulations and requirements.
A business considering a 500 kW project should therefore assess:
- Proposed installation date
- Final SRES regulations
- Equipment eligibility
- Installation requirements
- Grid connection requirements
- Commercial electricity consumption
- Whether waiting for the new arrangements affects project economics
The final eligibility criteria should be confirmed before signing a contract based on an assumed rebate amount.
Can a 1 MW commercial solar system qualify?
The proposed SRES expansion is intended to cover eligible solar PV systems with total onsite capacity between 100 kW and 1 MW.
This could make systems up to 1 MW eligible for STCs once the regulations take effect.
For large industrial facilities, this is potentially significant because 1 MW rooftop installations can generate substantial amounts of electricity and offset a meaningful portion of daytime grid consumption.
However, businesses should remember that system capacity alone does not guarantee eligibility.
The final technical, installation and compliance rules will still need to be satisfied.
What about commercial solar batteries?
Solar batteries have their own eligibility rules under the SRES.
Since 1 July 2025, eligible solar batteries can receive support under the scheme.
The Clean Energy Regulator states that eligible battery systems must generally have a nominal capacity of at least 5 kWh and no more than 100 kWh, including modular battery installations.
This means some businesses installing both commercial solar and battery storage may potentially access incentives for both technologies, depending on system design and eligibility.
However, solar PV and battery incentives are calculated differently.
Businesses should ask their installer to clearly separate solar and battery incentives in the proposal.
Who can benefit most from commercial solar?
Commercial solar can be particularly attractive for businesses with high daytime electricity consumption.
Examples include:
- Manufacturing plants
- Warehouses
- Supermarkets
- Retail centres
- Offices
- Schools
- Hotels
- Agricultural facilities
- Food processing businesses
- Cold storage facilities
These businesses often consume electricity at the same time solar panels are generating energy.
This can increase solar self-consumption and reduce the amount of electricity that needs to be purchased from the grid.
Does a commercial solar rebate make solar automatically worthwhile?
Not necessarily.
The rebate can improve project economics, but system design and energy consumption are still more important than the incentive alone.
A commercial solar project should be assessed using factors such as:
- Current electricity bills
- Daytime energy consumption
- Demand charges
- Solar system size
- Roof availability
- Electricity tariffs
- Grid export limits
- Installation cost
- Maintenance requirements
- Expected solar generation
- Business operating hours
A poorly sized system can still produce a weak return even after incentives.
The strongest commercial solar projects usually align system production with the business's actual electricity demand.
Commercial solar payback period
The payback period is the estimated time required for electricity savings to recover the net cost of the solar installation.
Commercial solar rebates can shorten this period because they reduce the effective upfront investment.
However, payback depends on:
- System size
- Installation cost
- Available incentives
- Electricity tariff
- Daytime consumption
- Export value
- Expected generation
- Maintenance costs
Businesses with high daytime electricity use may achieve stronger returns because more solar electricity is consumed on site rather than exported.
Any payback estimate should therefore be based on actual interval data and electricity bills rather than generic industry figures.
What should businesses check before claiming a rebate?
Before proceeding with an installation, businesses should confirm:
System eligibility
Make sure the proposed system capacity fits within the relevant scheme requirements.
Approved equipment
Panels, inverters and other components need to meet applicable standards and eligibility requirements.
Installation requirements
Use appropriately qualified and accredited professionals and confirm that the proposed installation meets the scheme's current rules.
Grid approval
Larger commercial systems may require more detailed network studies, export approvals and connection applications.
Incentive calculation
Ask the solar provider to clearly show the number and assumed value of certificates included in the quote.
Installation timing
This will become especially important for systems between 100 kW and 1 MW if the new SRES rules commence from 1 October 2026 as intended.
Commercial solar rebates and tax considerations
Government solar incentives are only one part of the financial picture.
Businesses may also need to consider accounting and taxation implications associated with purchasing and depreciating solar assets.
Tax treatment can depend on:
- Business structure
- Asset value
- Installation date
- Current Australian Taxation Office rules
- Available depreciation measures
Because these rules can change and vary between businesses, companies should obtain advice from a qualified accountant or tax professional rather than relying only on estimates provided by a solar company.
Why the 2026 changes matter
The expansion of the SRES from 100 kW to 1 MW could significantly change the commercial solar market.
Mid-sized systems have traditionally fallen into a gap between simpler small-scale incentives and more administratively complex large-scale renewable energy arrangements.
Allowing qualifying systems up to 1 MW to generate STCs could make the incentive process more straightforward for businesses installing substantial rooftop systems.
The government specifically expects the change to support commercial, industrial and agricultural facilities and encourage additional renewable electricity generation.
Choosing a commercial solar installer
Businesses should select an installer with experience in commercial projects, particularly for systems approaching or exceeding 100 kW.
Ask potential providers about:
- Commercial installation experience
- Electrical engineering capability
- Network applications
- System modelling
- Equipment brands
- Monitoring platforms
- Warranty support
- STC or LGC administration
- Installation timelines
- Ongoing maintenance
For larger systems, engineering and grid-connection expertise can be just as important as panel selection.
Final thoughts
The commercial solar rebate in Australia can significantly reduce the effective cost of eligible business solar installations.
Currently, the SRES generally provides STC incentives for eligible solar systems up to 100 kW. However, the Australian Government announced on 5 August 2026 that eligibility is intended to expand to commercial solar systems between 100 kW and 1 MW from 1 October 2026, subject to regulations being finalised.
This could provide an important new opportunity for warehouses, factories, farms and other businesses considering larger solar projects.
Businesses planning an installation should assess their electricity consumption, system size, expected savings and installation timing carefully. For projects above 100 kW, the final 2026 SRES regulations should also be confirmed before relying on a projected incentive.
A properly designed commercial solar system should make financial sense based on energy savings first, with available government incentives improving the overall business case.