Melbourne, Victoria — August 2026 — Australia’s commercial solar sector is preparing for a significant change to the Federal Government’s Small-scale Renewable Energy Scheme (SRES), with the solar eligibility threshold set to increase from 100 kW to 1 MW.

The expansion is expected to provide more businesses, farms and community organisations with access to incentives for larger solar photovoltaic installations. The change will significantly increase the system size eligible under the SRES framework and could create new opportunities for organisations considering medium-scale rooftop solar projects.

Under the announced changes, eligible solar systems between 100 kW and 1 MW are expected to gain access to the expanded incentive arrangements from 1 October 2026, subject to the required regulatory arrangements.

The policy change is particularly relevant to commercial properties with substantial electricity consumption and suitable rooftop space. Warehouses, manufacturing facilities, retail businesses, farms, community facilities and other organisations may be able to consider larger solar installations while potentially reducing their upfront project costs.

For businesses planning a commercial solar installation, system sizing remains an important consideration. Electricity consumption, daytime energy demand, available roof space, site conditions, network requirements and future energy needs can all influence the appropriate system size.

The SRES expansion may also encourage more organisations to use available commercial rooftop space to generate renewable electricity onsite. Increasing commercial solar adoption can help businesses reduce their reliance on grid electricity while supporting Australia's broader transition towards renewable energy.

Businesses considering solar systems between 100 kW and 1 MW should review the applicable eligibility requirements and regulatory arrangements before proceeding with an installation. Project timing may also be an important consideration as the expanded eligibility framework approaches its expected commencement date.

The 2026 SRES expansion represents a significant development for Australia’s commercial solar market and could provide additional opportunities for businesses and organisations seeking to invest in larger renewable energy systems.Contact Information

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