A significant change to commercial solar incentives takes effect from 1 October 2026, opening federal solar support to larger commercial systems.
From that date, eligible commercial solar systems greater than 100 kW and up to 1 MW can access federal support through Small-scale Technology Certificates (STCs).
Until now, STC support has generally applied to eligible solar systems up to 100 kW. The expansion creates a new opportunity for businesses considering larger solar installations.
Here’s what Victorian businesses need to know.
What Is Changing from 1 October 2026?
Imagine powering your car with the same energy that lights up your home – all courtesy of the sun. With a solar system installed on your property, you tap into an abundant, renewable source of energy. Solar panels convert sunlight into electricity, providing a clean and sustainable power supply that can be harnessed for various applications, including charging your EV.
This could be particularly relevant for:
- Manufacturing facilities
- Warehouses and distribution centres
- Agricultural businesses
- Large retail sites
- Offices and commercial buildings
- Other businesses with substantial daytime electricity demand
The change has now been legislated by the Australian Government.
You can read the Clean Energy Regulator’s official guidance here: Transitional Guidance for Mid-Scale Solar PV Systems.
While it may sometimes be described as a commercial solar subsidy or rebate, the support is actually delivered through STCs, rather than as a fixed government payment.
How Does the Commercial Solar Incentive Work?
STCs have a financial value that can help reduce the effective upfront cost of an eligible solar installation.
The exact dollar value is not fixed. It depends on factors including the size and eligibility of the system and the value of the certificates.
One important feature of the new mid-scale scheme is that eligible systems receive a fixed five-year deeming period.
This gives qualifying larger commercial solar projects access to upfront STC support based on that five-year period.
Can a Project Start Before 1 October?
Yes.
A business does not necessarily need to wait until 1 October to begin planning, designing, procuring or constructing its commercial solar project.
For the new rules, what matters is when the system is considered installed.
The Clean Energy Regulator states that a system is installed when it is first capable of producing and delivering electricity. In practice, this will generally align with testing and commissioning.
So a project already being planned or constructed may still potentially qualify if the eligible system is installed on or after 1 October 2026.
Can You Expand an Existing Commercial Solar System?
Potentially, yes.
The Clean Energy Regulator specifically addresses extensions to existing solar systems.
For example, an existing 80 kW solar system expanded by another 40 kW may potentially qualify as a 120 kW mid-scale system where the existing and new capacity form part of the same electrically connected system and the other eligibility requirements are met.
In that example, the STC entitlement would apply to the eligible new 40 kW capacity, rather than retrospectively to the original 80 kW system.
For businesses that already have commercial solar but have since increased electricity consumption, this makes reviewing the potential for system expansion particularly worthwhile.
When Can Businesses Apply for the New STCs?
The new eligibility rules apply to qualifying systems installed from 1 October 2026.
However, the Clean Energy Regulator expects applications for mid-scale STCs to open in mid-to-late November 2026.
Eligible systems installed from 1 October can still apply once the application process opens.
Businesses considering projects around this period should ensure the system design, installation and commissioning documentation meet the applicable requirements.
Does every commercial system greater than 100 kW and up to 1 MW qualify?
Systems greater than 100 kW and up to 1 MW are within the eligible mid-scale system size range.
However, system size alone does not guarantee STC eligibility. Projects still need to satisfy the applicable equipment, installation, accreditation, planning, network connection and compliance requirements.
Existing solar at the site and the way systems are electrically connected can also affect eligibility.
Victorian businesses may also have access to separate state-based incentives, such as the Victorian Energy Upgrades program, depending on the project and its eligibility.
What About the Battery Rebate?
The federal Cheaper Home Batteries Program is also available to eligible businesses and other non-residential premises.
However, under the current eligibility rules, the battery must be connected to an eligible solar PV system with less than 100 kW of solar capacity. This means businesses with qualifying smaller commercial solar systems may be eligible for the battery discount, but a battery connected to a new mid-scale solar system above 100 kW does not currently meet this particular requirement.
Eligible battery systems generally need to have between 5 kWh and 100 kWh of nominal capacity, with STCs available for the first 50 kWh of usable capacity.
What Does This Mean for Victorian Businesses?
For businesses that need more than 100 kW of solar, this change creates a new incentive opportunity that did not previously exist under the SRES.
But the incentive should not be the only reason for choosing a particular system size.
A commercial solar system should still be designed around:
- Electricity consumption
- Daytime operating hours
- Available roof space
- Grid connection and export limitations
- Existing solar infrastructure
- Future business growth and electrification
Final Takeaway
From 1 October 2026, eligible commercial solar systems greater than 100 kW and up to 1 MW can access upfront support through STCs under the expanded Small-scale Renewable Energy Scheme.
For Victorian businesses considering a larger solar installation — or expanding an existing system — this creates a new opportunity to reduce the effective upfront cost of commercial solar.
At Bespoke Solar, we design commercial solar around the way your business actually uses electricity, while assessing the incentives that may apply to your project.
Planning a commercial solar project? Talk to Bespoke Solar about the right system size and the incentives available for your site.
