SRES Expansion to 1MW: What Australia's New Commercial Solar Rebate Means

Quick answer: On 5 August 2026, the Australian Government announced it will expand the Small-scale Renewable Energy Scheme to cover solar systems up to 1MW, up from the current 100kW cap. The change is intended to start from 1 October 2026, but full eligibility and compliance rules haven’t been published yet.

What is changing?

The Small-scale Renewable Energy Scheme (SRES) is the mechanism behind Australia’s solar rebate. It works through Small-scale Technology Certificates (STCs), which installers create and sell on your behalf to bring down the upfront cost of a system.

Until now, only systems up to 100kW could access STCs. Anything larger had to go through the Large-scale Renewable Energy Target instead, a separate and less favourable pathway for a mid-size commercial rooftop. The Clean Energy Regulator’s announcement raises that STC eligibility cap to 1MW, a tenfold increase, opening it up to solar systems between 100kW and 1MW for the first time.

Before and after

Features 

Before the change 

After the change 

STC eligibility cap 

100kW 

1MW 

100kW to 1MW systems 

Large-scale Generation Certificates only 

Eligible for STCs 

Systems under 100kW 

Unaffected, already eligible 

Unaffected, still eligible 

Systems over 1MW 

Large-scale Generation Certificates 

Unaffected, stays under LRET 

Does this affect battery rebates?

No. This is a change to solar PV eligibility only. Neither the Clean Energy Regulator nor the Department of Climate Change, Energy, the Environment and Water has mentioned battery storage as part of this announcement.

If your business is also weighing up a commercial battery, that sits under a separate federal battery incentive program, and in NSW, under its own state scheme. We’ve covered how federal and state battery incentives interact separately and looked at NSW’s new commercial battery incentive in detail.

To know more about SRES Expansion to 1MW: What Australia’s New Commercial Solar Rebate Means

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