If your business has a warehouse, factory, showroom or office with a big roof and an even bigger power bill, there’s a federal policy change coming that’s worth your attention. From 1 October 2026, the rules around solar rebates for commercial systems are set to shift significantly — and it could make solar a lot more affordable for businesses that previously missed out.
Here’s what’s changing, and what it means if you’re a Melbourne business considering solar.
The current problem: a 100kW cliff
Right now, small-scale solar rebates (Small-scale Technology Certificates, or STCs) only apply to systems up to 100kW. Anything bigger drops into a completely different scheme — Large-scale Generation Certificates — which works differently and doesn’t offer the same upfront discount.
In practice, this created an awkward line in the sand. A 90kW system on a mid-sized commercial roof could access an upfront rebate. A 150kW system on the warehouse next door, with plenty more roof space to use, couldn’t. Some businesses ended up designing smaller systems than they actually needed, just to stay under the threshold and capture the rebate.
What’s changing from 1 October 2026
The federal government has confirmed it’s expanding the Small-scale Renewable Energy Scheme (SRES) eligibility threshold from 100kW to 1MW — a tenfold increase. This means significantly larger commercial solar systems will become eligible for the same upfront, certificate-based rebate that residential and small business solar has used for years.
According to the government’s own figures, this could reduce the upfront cost of an eligible commercial system by around 20%. For a business in the 100kW–200kW range — a mid-sized warehouse, showroom or office fit-out, which is where most of our commercial enquiries actually sit — that 20% can be a meaningful chunk of the install cost. We’d stress the word “estimate” here — actual savings depend on system size, certificate pricing at the time, and the final scheme rules once regulations are locked in.
Still, for businesses that have been sitting on the fence because a larger, properly sized system didn’t stack up financially, this is worth factoring into your numbers.
Who does this actually apply to?
Both schemes cover a wide spread of property types, which is worth spelling out because “commercial solar” can sound like it’s only for big industrial sheds. It’s not. Eligible sites include:
- Warehouses, logistics and distribution centres
- Manufacturers and factories
- Retail premises and shopping centres
- Offices and commercial fit-outs
- Hospitals, medical centres and aged care facilities
- Community and not-for-profit organisations
If your organisation falls into any of these categories and you’ve got roof space and a daytime power bill, it’s worth having the conversation — regardless of whether you’re sizing a 40kW system or pushing toward the new 1MW ceiling.
Victoria already has a head start
Here’s the bit that’s easy to miss in the national conversation: Victorian businesses don’t have to wait until October to get support. The Victorian Energy Upgrades (VEU) program already offers an upfront incentive for eligible commercial and industrial solar systems between 30kW and 200kW, and it’s been running since September 2025.
That means many Melbourne businesses can currently combine a state-based VEU incentive with the existing federal rebate — and once the SRES threshold lifts in October, that combination gets even more useful for anyone sizing a system above the old 100kW mark.
Why sizing your system properly actually matters more than the rebate
We’ll be straight with you: no rebate makes a badly designed system a good investment. The businesses that get the most out of commercial solar are the ones where the system is built around how they actually use power — not just how much roof space they’ve got.
Things that change the equation:
- When you use electricity. A business running solar-hour operations (say, 7am–4pm) gets a very different result to one running refrigeration or machinery around the clock.
- Demand charges. If a chunk of your bill comes from peak demand, not just total usage, that changes what size system — and whether a battery — makes sense.
- Export limits and network approval. Bigger systems can mean more paperwork with your distributor. Worth knowing early, not after your system’s ordered.
- What you’re planning next. EV fleet charging, electrification of gas equipment, or an expansion down the track should all factor into sizing today.
The right-sized system for your business is rarely just “the biggest one that fits.”
What this means if you’re weighing up commercial solar
If your business has meaningful roof space and decent daytime power use, the settings are lining up in your favour: an existing Victorian incentive, a federal rebate about to open up to much larger systems, and genuinely strong economics for the right site. This isn’t just a play for the mega-warehouses chasing a full 1MW system — most of the benefit for a typical Melbourne SME will sit well below that, in the 30kW–200kW range the VEU already supports.
Our advice? Don’t wait for October to start the conversation. Getting your electricity usage data, roof assessment and system design sorted now means you’re ready to move the moment the numbers make sense for your business — rather than starting from scratch when the threshold changes.
Thinking about solar for your business? O'Brien Electrical & Plumbing Rowville designs and installs commercial solar systems across Melbourne, built around how your business actually runs — not a one-size-fits-all install. Get in touch with our team for a site assessment and a system sized properly for you. Call us on (03) 8520 9555 to get your quote started.
FAQs
What is changing with commercial solar rebates in Australia? From 1 October 2026, the federal government is expanding the Small-scale Renewable Energy Scheme (SRES) eligibility threshold from 100kW to 1MW. This means commercial solar systems up to 1MW will qualify for the same upfront, certificate-based rebate previously only available to systems under 100kW.
When does the change take effect? The change is intended to start on 1 October 2026. It’s been confirmed by the federal government but remains subject to final regulations before that date.
What size commercial solar system is eligible? Once the change takes effect, systems up to 1MW will be eligible for the SRES rebate, up from the current 100kW cap. Smaller systems under 100kW remain eligible now, as they always have been.
Does this apply to schools? Yes. Schools are eligible under both the federal SRES scheme and Victoria’s VEU incentive, alongside other education, community and not-for-profit organisations.
Can Victorian businesses get support before October 2026? Yes. The Victorian Energy Upgrades (VEU) program already offers an upfront incentive for eligible commercial and industrial solar systems between 30kW and 200kW, and it’s been running since September 2025. This can currently be combined with the existing federal rebate.
How much can a business save on a commercial solar system? The federal government estimates the SRES expansion could reduce upfront system costs by around 20% for newly eligible systems. Actual savings depend on system size, certificate pricing at the time of installation, and final scheme rules.
Should I wait until October 2026 to install solar? Not necessarily. Getting your electricity usage data, roof assessment and system design sorted now means you’re ready to move as soon as the numbers make sense for your business, rather than starting the process from scratch once the threshold changes.