Australian businesses, farms, schools, and community organisations are set to unlock significant savings on solar installations as the application window for expanded federal rebates opens in mid-to-late November 2026. This crucial next step follows the recent amendment to the Small-scale Renewable Energy Scheme (SRES), which now extends eligibility to solar photovoltaic (PV) systems up to 1 megawatt (MW), a tenfold increase from the previous 100-kilowatt (kW) cap.

The federal government anticipates this expansion will reduce installation costs for eligible mid-scale solar projects by approximately 20%. While the legislative changes making these larger systems eligible for Small-scale Technology Certificates (STCs) took effect from 1 October 2026, the Clean Energy Regulator (CER) has confirmed that the system for processing STC applications will be ready to accept submissions from mid-to-late November. This upcoming opening provides a concrete opportunity for organisations to act on the promised savings.

What the Expanded SRES Means for Your Organisation

Until recently, the SRES primarily benefited residential and small commercial rooftop solar systems under 100 kW. The expanded scheme now brings a vast array of larger energy users into play, including warehouses, factories, large agricultural operations, educational institutions, and healthcare facilities. Minister for Climate Change and Energy Chris Bowen highlighted that the previous 100kW limit effectively locked out many larger energy users.

“One in three Australian homes have rooftop solar, but larger energy users have been locked out because the existing solar rebate only supports systems up to 100kW. We’re fixing that by expanding support to systems up to 1MW, unlocking the potential of commercial rooftops and helping businesses cut power bills, invest in growth and create jobs,” Minister Bowen stated.

This policy shift is designed to accelerate the uptake of solar across the commercial and industrial (C&I) sectors, leveraging the often-underutilised roof space of larger buildings. By generating power on-site, these organisations can significantly reduce their reliance on grid electricity, leading to substantial operational cost savings and contributing to Australia’s broader emissions reduction targets.

“The Renewable Energy (Electricity) Regulations 2011 were recently amended to expand eligibility for solar PV systems under the Small-scale Renewable Energy Scheme (SRES) from 100 kW to 1 MW. These changes apply to eligible mid-scale solar installed from today, 1 October 2026. Applications are expected to open in mid to late November 2026.”

How the 20% Cost Reduction Works

The SRES operates through Small-scale Technology Certificates (STCs). When an eligible solar system is installed, it generates a certain number of STCs based on its size and geographical location. These certificates have a market value and are typically assigned to the solar installer or retailer in exchange for an upfront discount on the system’s purchase price. For mid-scale systems (100 kW to 1 MW), a key feature of the expansion is a fixed five-year deeming period for STCs. This provides greater certainty regarding the financial benefit compared to the declining deeming period for smaller systems.

While the exact dollar value of the discount depends on the STC market price at the time of installation and application, the government’s estimate of a 20% reduction on installation costs provides a clear incentive. For a 200 kW commercial solar system, for example, which might typically cost around AUD $250,000 to $350,000 before rebates, a 20% reduction could equate to savings of AUD $50,000 to $70,000. These savings directly improve the return on investment for businesses considering solar. For context on smaller systems, readers can explore our guide on How Much Does a 6.6kW Solar System Cost in Australia in 2026? Your State-by-State Guide to Prices & Rebates.

Preparing for Application Opening

Organisations planning to take advantage of the expanded SRES should begin preparations now. The CER has outlined that eligible systems installed on or after 1 October 2026 will be able to apply once the application portal opens.

Key considerations for businesses include:

  • Accredited Products and Installers: Systems must use panels, batteries, and inverters listed on the Clean Energy Council (CEC) approved components list and meet Solar Accreditation Australia (SAA) installation guidelines.
  • Approvals and Connection: Ensure all necessary local government approvals and grid connection agreements are in place.
  • Documentation: Prepare supporting evidence for the installation, including statutory declarations and electrical safety certificates.

For businesses looking to further optimise their energy strategy, combining solar with battery storage can significantly enhance savings, particularly by reducing reliance on the grid during peak evening demand. The Australian Energy Market Operator (AEMO) recently reported that homes with solar and a battery drew around 74% less power from the grid between 4 pm and 9 pm than homes with solar alone. While this data is for residential settings, the principle of maximising self-consumption and reducing peak demand charges holds true for commercial operations. Businesses can learn more about optimising their usage by reviewing resources such as Optimise Your Solar & Battery in Winter 2026: Save Up To $800 on Peak Bills.

This expansion of the SRES represents a significant step in democratising solar access for a wider range of Australian enterprises, promising not only reduced energy bills but also a more resilient and decentralised energy network. With applications opening soon, now is the time for eligible organisations to finalise their plans and prepare to capitalise on these federal incentives.