Plenty of business owners have a commercial solar quote sitting in a drawer somewhere. The roof checked out, the sums were close, but the upfront figure never quite cleared the hurdle against everything else fighting for the budget. A federal rule change has just moved that hurdle, and for a large slice of NSW businesses it moves in the right direction.
The change was confirmed on 5 August 2026, when federal Energy Minister Chris Bowen used a National Press Club address to lift the Small-scale Renewable Energy Scheme (SRES) ceiling from 100kW to a full megawatt. From 1 October 2026, systems ten times larger than the old limit can tap the same upfront rebate that has already put rooftop solar on millions of Australian homes. The government puts the saving at roughly 20 per cent of the installed cost.
The headline in one minute
- Old rebate ceiling: 100kW. New ceiling: 1,000kW, a full megawatt.
- Live from 1 October 2026.
- Around 20 per cent off the upfront price of an eligible system.
- Funded through the existing certificate market, so it needs no new government spending.
- Applies to new systems fitted by a Clean Energy Council accredited installer using approved equipment.
Why the old ceiling shut businesses out
For years the rebate was sized for houses. A 100kW system is generous for a home or a corner shop, but a working warehouse, a cold store or a factory sails past it before the design is even finished. Anything over that line dropped into Large-scale Generation Certificates, which pay out slowly across the life of the system rather than landing as a discount on day one. For a finance manager weighing one investment against another, a slow trickle rarely beats a clear price cut today. Raising the ceiling to 1MW pulls that entire mid-sized band back into the simpler, upfront scheme.
This band is what the government calls the “missing middle”. Australian homes carry more than 22 gigawatts of rooftop solar, yet businesses have fitted only about 5.6 gigawatts, despite far more roof space and much higher power use. The change is aimed squarely at closing that gap.
What 20 per cent looks like in dollars
The government released two worked examples alongside the announcement. A 250kW system, the sort that suits a mid-sized warehouse or a busy retail site, attracts a saving of around $68,000. Scale up to an 850kW system on a large logistics or industrial roof and the reduction climbs past $232,000.
The number is not locked at exactly 20 per cent for every job. STC value comes from how many certificates your system creates, which is set by its size and your location’s sunshine rating, then multiplied by the going certificate price. When you request a quote, look for the certificate count and the price sitting behind the discount rather than a headline percentage, because that is where the real saving is decided.
Where the numbers work hardest
Solar earns its keep when you use the power as you generate it. The businesses best placed to gain from the wider rebate run their heaviest loads while the sun is up: manufacturers, food producers, cold storage, supermarkets, medical centres, schools and distribution centres. Owning the building helps, since the party paying the electricity bill also controls the roof. Add a large, structurally sound roof and a tariff steep enough to make daytime savings count, and the case tends to look after itself.
Across Sydney and NSW, sites like these are exactly the ones our commercial solar team sizes to match consumption, not just the roof.
Rebate plus finance: the combination most businesses overlook
A 20 per cent cut to the upfront number is the headline, but it is not the only lever on cost. Pair it with the right finance and a commercial system can sit close to cashflow neutral from the first bill. A lower starting price means smaller repayments on a green loan, a shorter road to a positive return, and in many cases a system funded largely by the savings it produces.
Structures like $0 upfront plans, commercial leasing and Power Purchase Agreements let a business install now and pay from the bill reduction rather than a lump sum. With the rebate shrinking the starting figure, those arrangements stretch further. Our commercial finance options set out how each one works for a business project.
Stacking with NSW and battery incentives
The federal rebate is not the only support on the table. NSW runs its own business energy programs, and the upfront solar discount can sit alongside them. Our guide to NSW solar rebates covers what is current and who qualifies.
Storage falls under a separate federal battery rebate that trims roughly 30 per cent off an eligible battery. Because it covers a different part of the system, a business fitting solar and a battery together can draw on both. Storage is also what handles after-hours use and demand charges, which a solar array on its own does not always reduce.
What to check before you commit
The rebate improves the maths. A few practical items still shape the project and are worth sorting early:
- Grid connection approval for a mid-sized system can take time. The government has asked energy regulators to speed these approvals up, though that work is still in progress.
- The roof needs a structural assessment to confirm it can carry the array.
- If you lease, the landlord owns the roof, so an agreement on ownership and access has to come first.
- Some commercial tariffs bill on peak demand as well as usage, which is where pairing solar with storage earns its place.
None of these stop a project. Handled up front, they simply keep the timeline honest.
Ready to see the numbers for your site?
The wider rebate reopens the commercial solar case for the very businesses that were previously too large for the household scheme and too small to chase large-scale certificates. Solar National designs, installs and finances commercial systems across Sydney and NSW, handles the rebate and connection paperwork, and can model the savings against your own bills before you spend a dollar. Request a commercial solar quote and we will show you exactly what the change is worth on your roof.
Frequently asked questions
How big a commercial solar system can now claim the federal rebate?
Up to 1MW, or 1,000kW. The previous limit was 100kW. Systems in the 100kW to 1MW band become eligible for upfront Small-scale Technology Certificates from 1 October 2026. Anything larger than 1MW sits under a separate scheme.
When does the expanded rebate start?
1 October 2026. It was announced on 5 August 2026 and remains subject to final legislation, so it is wise to confirm current eligibility before locking in a build.
How much could my business actually save?
The government estimates about 20 per cent off the upfront cost. As a guide, its own examples put a 250kW system at around $68,000 and an 850kW system above $232,000. Your figure depends on system size, your location and the certificate price at the time of install.
Is the rebate a cash payment or a discount?
A discount. The certificates are created and sold by your installer, and the value comes straight off your quote, so you pay the reduced price up front rather than claiming money back afterwards.
Can I still get the rebate if I finance the system?
Yes. The rebate lowers the purchase price no matter how you pay. On a financed system a lower price means smaller repayments and a quicker return, which is why the rebate and finance pair so well.
Does the rebate cover a battery too?
No. It applies to the solar panels and inverter. Batteries are supported through a separate federal program, which can be claimed alongside the solar rebate on the battery portion.
We already run a smaller system. Can we extend it and claim?
You cannot backdate certificates on an existing system, but extending your setup to use the higher limit may be possible depending on your current install and connection capacity. A site assessment will confirm it.
What do we need to qualify?
A new system between 100kW and 1MW, installed by a Clean Energy Council accredited installer using approved equipment. Your installer handles the certificate paperwork and applies the discount to your quote.
