The Australian federal government has announced a major expansion of the country’s rooftop solar rebate, opening up incentives for large commercial and industrial buildings to slash installation costs and shield businesses from volatile energy markets.
Climate Change and Energy Minister Chris Bowen revealed that the Small-scale Renewable Energy Scheme (SRES) will be expanded to support systems up to 1 megawatt (MW), a tenfold increase from the previous 100-kilowatt (kW) limit.
The reform will cut upfront installation costs for medium-sized solar setups by around 20 per cent, making it significantly cheaper for factories, farms, schools, hospitals, and retail centres to generate clean power.
“We’re putting more rooftops to work and helping businesses, farms and community organisations cut energy costs by slashing the cost of installing medium-sized solar systems by around 20 per cent,” Bowen said.
“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, unlocking the potential of commercial rooftops and helping businesses cut power bills, invest in growth and create jobs.”
Under the changes, which are expected to commence on October 1, a 250 kW installation on a medium enterprise will receive an estimated upfront discount of AU$68,000, saving approximately AU$50,000 annually on electricity bills. Larger 500 kW systems will attract a AU$136,000 discount.
Data from the Institute for Energy Economics and Financial Analysis shows that while Australian households have installed 22 gigawatts (GW) of residential solar, business capacity sits at just 5.6 GW. Independent analysis by Nexa Advisory highlights that Australia holds technical potential for 63.3 GW of commercial rooftop solar.
Industry groups welcomed the announcement. Solar Citizens Senior Campaigner Alia Armistead called large commercial roofs “a massive missing piece in our renewable energy capacity,” noting that generating electricity closer to where it is used reduces the need for costly transmission upgrades.
Climate Council CEO Amanda McKenzie added that the policy provides a vital buffer for regional and urban industries alike.
“Australian sunshine will now protect more and more Australian businesses from volatile global energy markets,” McKenzie said.
“For the Australia community this means less climate pollution and lower demand on the grid. It’s win win.”
The policy expansion will operate through the existing Clean Energy Regulator framework, ensuring minimal administrative red tape while putting downward pressure on wholesale power prices across the national grid.