Press Release

Expansion of rooftop solar scheme cuts upfront cost for businesses by 20%

From 1 October 2026, thousands of farmers, community organisations and small businesses across Australia, could save around 20% on the installation costs of larger rooftop solar systems with the Albanese Government’s expanded Small-scale Renewable Energy Scheme now law.
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Mid-scale solar systems installed from 1 October 2026 are eligible for support under the Small-scale Renewable Energy Scheme (SRES) where they meet scheme requirements. The expansion increases the maximum eligible solar system size from 100 kW to 1 MW.

The SRES has already supported over 4.5 million households and small businesses install solar.

This expansion will help businesses, farms and community facilities install larger solar systems, putting more commercial roof space to work cutting energy bills. It will also help businesses switch equipment and operations to electricity and reduce exposure to international energy price shocks.

To be eligible for the SRES, mid-scale solar PV systems will need to meet installer and product accreditation requirements and comply with state, territory and Commonwealth planning requirements, electrical safety regulations and network connection agreements. 

Details on eligibility are provided by the Clean Energy Regulator which administers the SRES. 

Lower energy costs can help manufacturers, farmers, retailers and transport and logistics businesses become more competitive.

To complement the SRES expansion, the department is preparing a rule change request for the Australian Energy Market Commission aimed at making it easier for businesses to connect larger solar systems to the electricity network.

For more information, please visit https://cer.gov.au/schemes/renewable-energy-target/small-scale-renewable-energy-scheme/small-scale-renewable-energy-systems

Quotes attributable to Minister for Climate Change and Energy Chris Bowen:

“This reform will reduce the upfront cost of installing a mid-scale solar system by around 20 per cent, making it easier for businesses and farmers to invest in cheaper, cleaner energy.”

“At a time when global energy markets remain volatile, more solar means lower exposure to international price shocks and greater energy security for Australian businesses.”

“We’ve seen what rooftop solar can do for household bills. We want more businesses to get those benefits too, from farms and factories to shops and warehouses.”

“Putting more solar on business rooftops means more Australian energy powering Australian industry, helping cut running costs and exposure to volatile fossil fuel prices.”