New Commercial Solar Rebate: Expanded to 1MW

commercial solar system

20% Off Commercial Solar Installs, Systems Now Eligible Up To 1MW

For warehouses, distribution centres, retail sites and manufacturers across Penrith, the Blue Mountains and Western Sydney, this is the biggest change to commercial solar economics since the scheme began.

Until now, any property wanting a solar system larger than 100kW had to go through the more complex Large-scale Renewable Energy Target (LRET) process, no upfront point-of-sale discount, just progressively priced certificates that made larger systems far less attractive. From 1 October 2026 (subject to the necessary regulations being finalised), businesses installing systems up to 1MW get the same style of upfront discount homeowners have had for years — worth around 20% off installation costs.

There’s a detail most coverage of this announcement is missing: eligible systems under the expanded scheme are also expected to retain a five-year deeming rate through to 31 December 2030, rather than facing the annual step-down that smaller residential systems face as the scheme winds down.

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Program Highlights

Previous system cap: 100kW

New system cap: 1MW (10x larger)

Estimated discount: Around 20% off installation costs

Certificate stability: 5-year deeming rate locked through to 31 Dec 2030

Example saving: $68,000 off a 250kW system, $136,000 off a 500kW system

Estimated bill savings: ~$50,000/year on a 250kW system, ~$175,000/year on an 850kW system

Commencement date: 1 October 2026 (subject to final regulations)

Administered by: Clean Energy Regulator, via the existing SRES/STC scheme

Eligible entities: Warehouses, manufacturers, retailers, farms, schools, hospitals, community organisations

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commercial solar system
commercial solar system

Mid-Scale Commercial Solar with E-Smart Solar

Mid-Scale Commercial Solar (100kW–1MW)
Sized for warehouses, distribution centres, cold storage, manufacturing facilities and large retail roofs — exactly the “missing middle” this expansion is designed to unlock.

Battery Storage for Business
Pair your system with commercial battery storage to shift more of your load to daylight hours, manage peak demand charges, and keep critical equipment running through outages.

Solar for Hospitality & Tourism
From Blue Mountains guesthouses to function centres, we size systems around your property’s real seasonal energy demand.

Grid Connection Support
We manage the connection application process with your local network distributor — Endeavour Energy across most of our service area — from day one, and we’re tracking the AEMC’s faster-approval push closely.

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Estimated Savings by System Size

System SizeEstimated DiscountEstimated Annual Bill Savings
250kW (medium enterprise)~$68,000~$50,000/year (approx. 345 MWh generated)
500kW~$136,000Scales with generation and site load
850kW (industrial energy user)Proportionally larger~$175,000/year (approx. 1,173 MWh generated)

These figures are the Federal Government’s own worked examples and are indicative only — your actual discount and savings depend on your system size, site conditions, energy usage and the STC price at time of installation. We’ll model your exact numbers as part of a free site assessment.

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commercial solar system
commercial solar system

Is My Property Eligible?

The expanded SRES is likely to suit your property if:

  • Your proposed solar system is between 100kW and 1MW.
  • You operate a commercial, industrial, retail, hospitality or community site in Penrith, the Blue Mountains or Western Sydney.
  • Your property has sufficient roof space, ground space or shed structures to support a mid-scale system.
  • Your site can support the required grid connection capacity — we assess this as part of your free consultation.

The scheme is delivered through the same Small-scale Technology Certificate (STC) mechanism that’s been discounting solar since 2011, and is expected to remain budget-neutral for government — so there’s no new bureaucracy to navigate.

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Frequently Asked Questions

What is changing with the commercial solar rebate?

From 1 October 2026 (subject to change), the Small-scale Renewable Energy Scheme (SRES) is expanding its eligible system size from 100kW to 1MW — ten times the previous cap — giving mid-scale commercial and industrial systems access to the same upfront, point-of-sale discount that residential solar has had for years.

How much will I save?

The government estimates around 20% off installation costs. Worked examples include roughly $68,000 off a 250kW system and $136,000 off a 500kW system, though your actual figure depends on system size, site conditions and STC pricing at the time of installation.

Does the discount rate change every year like it does for home solar?

No — eligible mid-scale systems are expected to retain a five-year deeming rate through to 31 December 2030, rather than the annual step-down applied to smaller residential systems.

Do I need to be a big business to qualify?

No. The scheme is aimed squarely at the “missing middle” — mid-sized warehouses, farms, retailers, schools, hospitals and community organisations that were previously too large for the standard rebate but not large enough to justify the more complex large-scale certificate process.

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