Plenty of business owners have a commercial solar quote sitting in a drawer. The roof checked out and 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 federal solar rebate that has already put rooftop solar on millions of Australian homes. In Bowen’s own words, “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 100 kW. We’re fixing that by expanding support to systems up to 1 MW.” You can read the Minister’s media release for the full announcement.
The commercial solar rebate at a glance
| Detail | What applies |
|---|---|
| Scheme | Small-scale Renewable Energy Scheme (SRES), running since 2011 |
| What changed | Eligible system size cap lifted from 100kW to 1,000kW (1MW) |
| Headline value | Around 20 per cent off the upfront installed cost |
| Start date | 1 October 2026, subject to final regulations |
| Announced | 5 August 2026, Minister Chris Bowen |
| Mechanism | Upfront STC discount, applied by your installer at point of sale |
| Administered by | Clean Energy Regulator |
| Funding | Existing certificate market, so no new government spending |
Correct as at the announcement. The regulations that give the change legal effect are still being finalised, so confirm current eligibility before you lock in a build.
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”. The technical potential for solar on commercial, industrial and agricultural roofs is estimated to exceed 80 gigawatts, yet only about 5.6 gigawatts has been installed, despite businesses having far more roof space and much higher power use than the average home. The change is aimed squarely at closing that gap.
To picture the new territory: 1MW is roughly 2,300 modern panels, the sort of array that fits a large distribution centre roof. The old 100kW cap was closer to 230 panels, about a small supermarket. Everything between those two sizes is what this rebate now opens up.
Who is eligible for the expanded commercial solar rebate
The scheme is built for businesses too large for the household rebate but too small for the large-scale scheme. The government names the intended beneficiaries directly: manufacturers, farmers, retailers, logistics and transport operators, warehouses, shopping centres, schools, hospitals and community organisations. In plain terms, anyone with a big roof and a daytime electricity bill.
To qualify, you need a new system between 100kW and 1MW, installed by a Clean Energy Council accredited installer using approved panels and inverters. Systems under 100kW already earn STCs today, so nothing changes for them. If you are weighing up whether the numbers stack up for your site, our guide on whether commercial solar panels are worth it works through the payback and self-consumption side in detail.
How much the commercial solar rebate is worth in NSW
The government estimates about 20 per cent off the upfront cost, and it 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 off the install, plus roughly $50,000 a year in reduced energy bills.
- An 850kW system on a large logistics or industrial roof sees the upfront reduction climb past $232,000, generating about 1,173 MWh a year and saving in the region of $175,000 annually on power.
The 20 per cent is not locked in for every job. STC value comes from how many certificates your system creates, 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.
How the commercial solar rebate is calculated
The maths behind the discount is straightforward once you see the parts. Certificates are worked out first:
STCs = system size (kW) × zone rating × deeming years
Then the certificates are sold, and that value becomes your discount:
Discount ≈ number of STCs × STC price
Each input in plain terms:
- Zone rating. Australia is split into four solar zones based on sunshine. Most of NSW sits in Zone 3, so a Sydney or regional NSW roof earns a solid number of certificates per kilowatt installed.
- Deeming years. STCs are paid upfront on the generation your system is expected to produce out to 2030, when the scheme is legislated to wind down. Because that end date is fixed, the number of deeming years falls each calendar year. Install sooner and you earn more certificates for the same system.
- STC price. Certificates trade on the open market. The Clean Energy Regulator also runs a clearing house with a fixed price of $40 per certificate excluding GST, and the open market usually trades a little below that. Check the current price with your installer before you build it into a business case.
You rarely touch any of this yourself. As with household solar, you assign the certificates to your installer, and the quote you sign already has the value deducted. The number you see is the net price.
Worth acting before year end: because deeming years drop every 1 January, a system installed this side of the new year earns more certificates than the identical system installed after it. On a project worth hundreds of thousands of dollars, that timing difference is real money. It is one reason to start the design and connection process now rather than waiting for October.
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. The higher your self-consumption, the faster the payback. Across Sydney and NSW, sites like these are exactly the ones our commercial solar installation team sizes to match consumption, not just the roof. Western Sydney operators can see how this plays out in our breakdown of commercial solar for Western Sydney warehouses.
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 breakdown of commercial solar ROI and payback for Sydney businesses shows how finance and the rebate work together on a real 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, subject to each program’s rules. 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.
How to claim the rebate: a sensible sequence
The scheme is not open yet, with commencement expected from 1 October 2026. A mid-sized project has a long lead time, so the smart move is to start the groundwork now:
- Size the opportunity. Pull 12 months of interval data from your retailer and look at your daytime load. The best systems are sized to consumption, not to the roof.
- Check your connection path early. Ask installers what your network provider requires for a system of your size and how long approval usually takes. This is often the critical path. The government has asked energy regulators to speed these approvals up, though that work is still in progress.
- Confirm the roof. A structural assessment checks the roof can carry the array. If you lease, agree ownership and access with the landlord first, since they own the roof.
- Use an accredited installer and approved gear. SRES eligibility requires a Clean Energy Council accredited installer and panels and inverters on the approved product lists. Your installer handles the certificate paperwork and builds the discount into your quote.
- Get competing quotes. A 20 per cent discount does not rescue an overpriced or poorly designed system. On a six-figure project, the spread between quotes can exceed the rebate itself.
None of these stop a project. Handled up front, they simply keep the timeline honest.
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 NSW 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 solar zone, the deeming years left in the scheme 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.
Why does installing sooner earn a bigger rebate?
STCs are deemed out to 2030, and the number of deeming years drops every 1 January. Fewer years left means fewer certificates for the same system, so the discount shrinks a little each year the scheme runs.
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.
